Oh what a wonderful difference a year makes... from all of the story telling of the resurgence of the land of the rising sun, to "Japanese Activism", did we ever have a chuckle with Wall Street's creativity. Then we shorted them and Japan. Now the stock market is almost -60% lower, and we have the 1st negative Japanese retail sales growth report (year over year) since July of 2007 (see chart). Are you thinking this is a one-time event, or will this manifest into its negative 25 year "Trend" of Japanese economic malaise? For now, we have locked in our gains on the short side of the EWJ etf, but we will be back, re-shorting the story tellers... patience always pays…
- The Nikkei should be covered, for a "Trade", anywhere under the 7,127 line.
Chart courtesy of stockcharts.com