Category: Asian Markets
Japan: Look At This Opportunity in the Nikkei
Or, How One Chart Can Offer a Whole Education
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| By Robert Folsom |
Published: Mon, 05 May 2008 17:15:00 ET |
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The idea of one picture telling a thousand words applies in financial markets more than most people realize. In the hands of an analyst who knows what he's doing, "1 picture = 1,000 words" can be literally true.
This chart is the work of Mark Galasiewski, the editor of our new Asian Financial Forecast service. He published it about five weeks ago -- as for what it says, I truly do not believe that 1,000 words would be enough for me to explain all that the chart offers (and in fact, this chart actually omits a critical piece of information). But please have a look: below I'll give a brief summary.
The topic, obviously, is Japan. The chart tells a six-year-plus story that features patterns in the country's main stock market, plus the accompanying psychological trends as revealed by two indicators: First by a sentiment index, and second by magazine covers. Yes, magazine covers. The "magazine cover" indicator remains one of the best-kept secrets in the financial world, though not from any lack of discussion about it on our part (it was first described by Paul Montgomery decades ago). Even so, U.S. markets are the traditional focus of analysts and investors who do follow the magazine cover indicator. Yet as you can see, it's clear that this indicator applies elsewhere -- namely in Japan.
You can read the hottest forecasts about the hottest Asian markets -- right now, risk free. Click here to see it for yourself.
Here again, let me state the obvious and note that four of the five magazines in the chart are Japanese. I raise this not-so-small point because Mark himself translated those headlines to English. He lived in Japan for years and speaks the language fluently (he's also conversant in Mandarin Chinese). When it comes to his analysis and forecasts, the benefits of this skill "speaks" for itself -- likewise for the subscribers who read his monthly commentary about the region.
One final remark about what's not on the chart you see here. I said this version omits a critical piece of information -- specifically, the Elliott wave labels Mark placed on the chart to show exactly where the pattern has been, is now, and will go from here. The six-year time frame of the chart speaks directly to the size and scale of the opportunity.
You can see the chart -- including the Elliott wave labels -- in the 12-page Global Market Perspective Special Report, which we include with a subscription to the new Asian Financial Forecast service. Please click here for all the details.
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