NIKKEI HITS 6 YEAR HIGH

Couple a month ago we forecasted a strong bullish rally on Nikkei, we built up in the last couple of months a group of long positions on Nikkei and we have made a nice profit on that. Our idea was the big arbitrage between the US markets and the legging Nikkei.

After a bank holiday Monday in Japan, tonight the Nikkei hit a 6 year high, the weak YEN is supported this movement. The index gained on year to date basis 53,8% and stays now at 15,903. The telecom shares were traded higher. Generally all Asian markets gained in the last couple of days like ASX or Shaghai Composite or Hang Seng.

Technically the Nikkei shows very healthy patterns. The dips are higher and higher and we had a breakout after 9 months consolidation a few days ago at 15.720. That resistance level has been violated the very first time since this April. The sky is opened now heading north. The next resistance is at 17,500. That can be our next summer middle range target.

We are still far far away from the historical top at 1989. The Japanese market has two lost decades, which seems more than enough and could be a great buying opportunity recently. Who knows?

Take a look at our Swiss fund and begin to invest with us!

The BFM Assets Team.