Japan Update - Nov 20, 2024 (Patreon)

Japan's Nikkei is still in consolidation mode, digesting 1) the rally at the beginning of the year, 2) the rapid Yen carry-trade unwind in August and now 3) uncertain implications of Trump's return to the White House.

Taking aside the overshoot in August, the trading range is still between 37000-41000.

In terms of positioning, based on Bank of America's Fund Manager Survey. Funds are still very much overweight Japan. This may not be a great thing because if China's economic recovery surprise to the upside, it can result in significant capital rotation from Japan to Chinese stocks.

Watchlist Review

4530 triggered my stop profit, resulting in +0.6 R profit

 9104 adjusted the stop loss higher, reducing the risk on this trade to 0.3 R

 Watchlist

8001 Itochu (Trading company / Buffet stock) . Discounting the sharp move in August, the stock has been consolidating since June

4543 Terumo (Medical device). It broke out of 10 month consolidation a couple weeks ago. Since then it has pulled back and formed a tight range. Breakout out of this range could be an entry point I'm waiting for.

 8316 Sumitomo Mitsui Financial Group (Bank). The breakout happened in early Nov. Now it is forming a flag pattern and I'm waiting for it to break out of this range.

7751 Canon (Consumer Electronics): this stock has been relatively strong and showed up on my radar from time to time. Now the trading range is getting narrower.

Disclaimer: The content of this post is solely for entertainment and not investment advice. Any views expressed in the below are the personal views of the author and should not form the basis for making investment decisions, nor be construed as a recommendation or advice to engage in investment transactions