It is therefore necessary to have a solid investment plan:
1) Clarify your investment time frame (mine is 6-12 months)
2) Use appropriate charts timescale (monthly for me)
3) Have a target, a stop on each of the investment, BEFORE you buy or short...and review them regularly
Remember, emotion is the enemy of any investor, as we tend to take our loss too slow, and take our profit too fast..so have a plan...
In the Nikkei case, a 3-6 months investor would/may have taken profit , as Nikkei reached the first target last month. In my case, I keep it as long as stop are not triggered, and currently the index is on a support.
Nikkei Weekly chart: On support, BUY
The index corrected spectacularly fast to test fibo retracement and 20 week moving average. The index is extrememely oversold.
For those who missed the rally, it is the opportunity to Buy...
Though I always make up my own mind, it is reassuring to know that Mr Soros just took a long position in Japan (and short on Yen)
Gold Miners monthly charts: Further downside
As the index broke the last support, it is heading towards 2008 lows....Too early to Buy gold...
US 10Year Bond Yield weekly chart: Bonds about to fall?
The US 10yr yield chart is developping a bottom. (Yield graph is the inverse of Bond price)
A break up of current level will accelerate the sell off in bonds.
Dollar Index Monthly chart: USD to fall?
There is a negative divergence on the Dollar index, in other words there is a warning signal on the USD... It needs to fall below 79 to confirm the reversal.. which I doubt as....
a fall in USD vs Yen for instance is against Super Abe's plan...
Conclusion:
Buy (or increase longs in) Nikkei, keep the longs in US, Europe.. Don't buy the bonds as likely to fall, and it is still too early to buy gold.
Happy investing...
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