ARE YOU LOOKING FOR A GOOD BUYING OPPORTUNITY? BUY THE NIKKEI.

Tonight made the Nikkei a fascinating rally which makes me hmmmmm:

Nikkei 225 14,866 +413, 2.86%

In the whole trading session the momentum was so bullish and closed the price on the daily high. That is a good indication for potential further gains and shows the severe uptrend. Today erased the whole last four days losses and close the week with 3% gains and bounced back a nice positive territory. The investors are back in the buying mode.

Since 1st of January the Nikkei dropped around 8,7%. Now it seems us bargain the price. Why?

We have some reasons why you should buy the Nikkei. There are many fundamental reasons like:

• The BoJ wants to continue the monetary stimulus, to hit the 2% inflation target
• The inflation is increasing
• There is a strong uptrend momentum in USDJPY
• The GDP is over the world average with 3,5%
• The Japanese economy continues to heal nicely and this year will undoubtedly be good
• The Japan P/E ratios are at far lower levels than the US ratios

Technically the index seems so oversold. There is one of the most hated and unpopular index recently. This is a pariah index and nobody wants to own it. But after the 8% drops so far this year we see technically some inflection points. End we are anticipating nice rally for 2014.

Major US indices and Europeans are close again to the historical highs and erased the six weeks loss in 2014. But the Nikkei is still undervalued and lagging couldn’t recover so far. There is a good arbitrage deal to buy the weakness because we are sure about the Nikkei will catch up the other indices. Meaning 20-30% gains this year, at least.

The Nikkei closed above tonight the 14,777 resistance level which was a breakout and now the area is opened to the next resistance level at 15,130. And, there is another bullish pattern that the lowest points are higher and higher.

The BFM Assets Team.