Banzaiiiiii, Shoow me the Money....Japan broke! US breaking...Europe is Europe...

Nikkei broke a 4 year range and fled two months in a row, at one point it was up 15%...Justified or not from a fundamental point of view, it has further to go...Super Abe will support it whatever it takes..
S&P500 broke a historical high, DAX is close to it and the rest of Europe is timid. 
With the tragedy in Cyprus, the Bozo's of Spain, Italy and France (Have they ever learnt Economy 101?), it is amazing that European indeces have not collapsed. I digress but People deserve the leaders they have chosen...The truth is that Courage is what is lacking to our leaders (should I call them annuitants) ... Sorry, back to $$$$:
No change of view since my previous blog in early Feb: Japan is still my top favorite, Europe is still a Buy, but I am cautious on this one, and US, well if Ithe S&P stays above the current level in April, I'd Buy. Please note again, that I have a 6-12 months investment time frame.

Nikkei Monthly Chart: The best Long in global equities

The index, as expected, continued to rise and jumped to the next resistance (the 50% Fibo retracement ..again Fibonacci, do you start to believe in this?)
The momentum on 2-3 months is still upward. In the short term, the market is to correct a bit as overbought.Which means Buy on weakness
The trouble is that many are recommending buy on weakness, so we may not see a correction...

The next target is still the same: 14000 and then 17000. 
Japan is the best country to be invested in, it was the top performer of the  indeces I follow (the best ones were in Africa, difficult ones to invest in). 


 S&P quarterly: Breaking historical high... Beware of the bull trap though

The index has closed above historical high (tested twice, in 2000, and 2007). I would wait and see if this level is confirmed, if confirmed, the next target is 1750's....

There is one thing I do not like to do, it is to bet on break! especially when it is historical highs ( or lows)

The upward momentum is not strong, and S&P 500 is pretty overbought, so I would wait a month to buy. But that is my style, agressive punters can Buy now, and close the long if market corrects...

 


DAX quarterly chart: Testing historical high...

 The mighty German index tested an historical high, but it closed in March near March low, not very bullish, which makes me doubt that DAX will break up...

The index is overbought, and momentum is waning. And we have a negative divergence in weekly chart. In plain English it means DAX will correct.

The Eurostoxx, and CAC indeces, which I recommended as a cautious BUY, are so boring that I did not feel like attaching a chart: They tried to move up to later close back to Feb level. Still a long though...



Conclusion: Keep Long position in Japan, Buy further on correction, with 30% upside for the next 6 months. 
Keep the longs in Europe, but like the previous update, be ready to exit on correction. 
US is a Buy now for agressive investors, and for the others, wait for a confirmation of current the level.
We are entering into the 1Q earnings release period...I doubt that European companies will surprise positively...
I am still long Japan, Europe
Happy investing!