On the 17th May, we wrote an article indicating our view on nikkei index. We mentioned that nikkei will hit a deadly cliff at 16000! I mentioned it on Radio 958 when interviewed by Di Cong.
Our article: <<Nikkei breaks 15000, but 16000 is DEADLY CLIFF!>>
http://www.danielloh.com/2013/05/nikkei-breaks-15000-but-16000-is-deadly.html
On the 13rd May, Nikkei hits highest during mid day at 15942 before dropping 1000 points!!!
Today Nikkei is at 14612. What a big drop to the best performing index in Asia. It was still powering forward when I wrote the article.
So what will happen to this index? We feel that it might consolidate for a while. 16000 is a difficult barrier to exceed, even with all the QE promises and the popular "Abenomics" method. It needs a rest.
However as the index drop so much these few days, we feel that 13600-14400 might be a good point to enter for some short term gain. At 13600, you might want to seriously pick up some Japanese stocks.
Rgds
Daniel
www.danielloh.com
