TURNING JAPANESE

Here we have the EWJ which is the ETF for Japan. This market appears to have made a bottom. Both the trend oscillators are confirming at least that a near term low is in so dips here should be bought. There has been alot of talk about China and Japan as the next great economic powers. It certainly appears with that blockhead/communist that we have at the helm, that it won't be us.

Of the places I am considering moving due to where I see things going here, the far east is not one of them. I cannot stand cigarette smoke, so there is nothing for me over there even if the economy over there out performs ours. For the moment, it appears buying the dips there is the play. We may also be moving into that situation here with the US stock market on a short term basis. I still think the weekly is in a downtrend, but we are not up to where I would be looking for shorts, and my indicators on the daily charts are nowhere near sell signals right now.

BH if you are reading today, the short position I mentioned to you is not close to being put on now.

The above sp500 chart shows a definite change in upward momentum telling us to look to buy dips. For those still bearish, you can see one item on this chart that supports that case. We have the top oscillator having exceeded the peak of the prior top, yet price is way below the same level corresponding to that peak. This generally indicates buying exhaustion, so there should be a retracement in reaction to that exhaustion. It is how things look once that retracement happens that will determine whether I get long on a dip or not. It is too early to tell right now if a dip is a definitive buy or not. My wish list would be for a small dip and another leg up into the weekly resistance, which would setup a sell for a larger move down.

Will it happen? Who knows, but I know what I will do if it does. Have a plan and be prepared to execute it accordingly. I am sorry for the shorter posts lately. Having to use this old editor with Blogger until they fix the problem makes doing this very time consuming. I just do not have endless time in the mornings to do this. Once they get it fixed, whenever that is, I will get back into more charts. Having to load them, then rearrange the HTML code just to get them close to the right location just sucks, and takes too much time.