Today’s Japanese Stock Market Strategy
Strategies
- Buy or Sell Uniqlo.
- None.
- Buy high-tech stocks in the afternoon session
Explanation
Considering the situations with Russell and ARK ETF, it’s plausible that there might be substantial selling in small-cap high-tech stocks post-SQ. Buying during the morning session might not be wise; instead, entering positions in the afternoon or at the close might be more prudent.
For day trading, focusing on Fast Retailing could yield high expectations. Due to its recent earnings announcement and overlapping SQ orders, it’s likely to experience significant price swings from the opening. Trading based on whether it forms a bullish or bearish candle might be a good approach.
Review of Today’s Japanese Stock Market
Prominent Movers
- Fast Retailing
- High-tech stocks
- Mothers Index
Explanation
Fast Retailing continued to rise significantly from the opening, outperforming other stocks in the Nikkei index.
On the flip side, the Nikkei index experienced a significant decline, with many high-tech stocks apart from semiconductors dropping. Mothers, despite being an index, saw a substantial 3.58% decline. The market essentially mirrored the rise in US bond yields and the decline in small-cap high-tech stocks.
This was supposed to be a healthy rebound… Buying high-tech stocks in the afternoon might be a good move for now, but if bond yields surge significantly next week, it might necessitate cutting losses.
Conclusion
This was supposed to be a healthy rebound…
