Stock Market Highlight #4
Short positions instituted in Japanese Nikkei stock index ("NK") are suggested at the high for the first half of 1998 prior to sharp decline.
(COMMENT # 83)
UPDATED 19980212
COMMENT 1998-83
Turn to page 269 of "The 1997 $upertrader's Almanac - 1st Half Edition".
1. Can you see where the Nikkei 225 was highlighted at the bottom of the page in the "BEST BETS" section.
2. Can you see how the 4 year PATTERN provided the clue to the pending Asian collapse?
3. Did Asian prices shortly thereafter cascade as anticipated?
4. Note how price broke the 1995 "B Wave" low shown in the chart on page 269 in early January of this year.
5. The ensuing rally has covered 5 weeks (FIB # = 5).
6. Can you turn to pages 126-129 of "The $upertrader's Reference Manual"?
7. Has this same pattern not formed in the NKH from 980127 to 980209?
8. Can you draw an up trendline off the 980109 and 980204 lows?
9. Shouldn't we sell a break of that trendline?
10. Again, minimal risk, large reward.
11. The Japanese fiscal year ends March 31st.
12. If the NK breaks 14,300 or so, EXTREME pressure will be placed on the Japanese financial system. I truly hope this is one of those trades that does not work out.
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