Nikkei Working on a Break-Out; Next Up 14K by the End of 2013?
In the chart below the Nikkei is attempting to break-out from a consolidation flag pattern formed by lines (1) and (2), which has been in development since 2008. If a break-out occurs, it could result in materially more upside in…
Where Next For Interest Rates?
First off, we plot the 10 year interest rate below. Very nice and tight consolidation pattern that’s taken place along lines (1)-(3) that looks very close to ending. A break above line (1) and rates could shoot aggressively higher over…...
If Silver Was a Bubble and 2011 Marked the Top, This is Where the Second Wave of Selling Likely Begins
It’s been a long time since we’ve done any work on silver or precious metals for that matter. There just haven’t been many interesting technical set-ups to speak of one way or the other. However, that seems to have changed…...
More Thoughts & Analysis on the Nikkei & Yen
Here are some background posts on how our thoughts have progressed on the Yen and Nikkei here, here, and as of last week, here. With these posts in mind, we present the Yen and ratio of the DJ Global Index…...
If U.S. Bonds are the “Big Short” of the Next Decade, it Likely Means Japanese Equities are the “Big Long”
We got to thinking yesterday and came up with the chart below… It plots the ratio of the SPX vs. Nikkei against the 10 Yr UST price since 1998, when things really started going “global” with LTCM, the Russian FX…...
Is 2012 for the Nikkei Analogous to 2002 for Gold?
What is the most absurd vision of the future we can come up with right now? What asset class or region seems least likely to embark on the next great secular bull market (or bear market)? Think back to the…...
Yen Finally a Short Candidate? Nikkei Finally Going to Outperform?
The Yen sits at multi-decade highs against the USD. The ratio of the DJ Global Index vs. the Nikkei the same (i.e., the former has outperformed the latter for quite some time). Interestingly though, the Yen recently broke below trend-line…...