Posts filed under “Index/ETFs”

10 Reasons I Am Thinking About Japan

As of late, I have been intrigued by Japan. It is a part of the world that investors seem to detest ignore, despite signs of technical improvement.

I’ve talked about this in the office, and with some of our clients who either own specific Japanese names — or live there. The thought process is Japan is a potential surprise in 2011.

I first spotted this on FusionIQ; The reason was due to it flipping back and forth between a Neutral and a Buy in October. EWJ is a VERY interesting chart — much more so than the Nikkei Dow; EWJ is in a nice uptrend that slipped over its the December 2009 highs earlier this month; It just got over its April 10 highs this week.

Here are 10 Reasons I want to own some Japan for 2011:

10 Reasons to Think About Japan

1. Everyone seems to hates — or just ignore — Japan as an investment; its widely disliked for its bad demographics, aging population, ongoing MULTI-DECADE recession.

2. The chart! Nice uptrend, new highs.

3. Institutionally and on Main Street, Japan is VERY under-owned.

4. The island nation is still the 2nd biggest economy in the world in real (not nominal GDP) dollars; they are a huge exporter, and an industrial powerhouse.

5. Proximity to China: As it grows, Japan has easy access to even cheaper low end manufacturing. The high value engineering and design work stays in Japan, but the toxic smokestack industry moves to the mainland.

6. Improving global economy could help Japan’s export business.

7. If China rescues Europe, Japan benefits.

8. The country has shown long term resilience to misfortune — the only nation to be nuked (2X!)

9. Modern infrastructure, highly educated, excellent work force; forward thinking gadget-head consumers.

10. Consumer prices are anticipated being flat next year — the 1st time after 3 years deflation.

And did I mention I like the chart ? Note how many times EWJ got turned back at $11. What would get me really excited was a high volume breakout over $10.90-11.


EWJ iShares Japan (10 Year Weekly)


EWJ iShares Japan (12 Month (Daily)

All charts courtesy of FusionIQ

Category: Index/ETFs, Investing, Technical Analysis, Trading

Value Line Arithmetic vs Geometric Index

My pal David Rosenberg points out that the Value Line Arithmetic Composite Index is at an ALL TIME HIGH. (This is an equal weighted price index of the 1650 stocks surveyed by Value Line, averaged daily). Dave writes: “The average stock, by the way, according to the Arithmetic Value line index, just hit a new…Read More

Category: Index/ETFs, Markets

Comparing World Indices

Today’s chart porn is a quick look at major world indices since January 2000, via the always excellent D-Short. > click for ginormous chart > Hat tip Grant Williams

Category: Index/ETFs, Investing, Technical Analysis

Investing Like a Psychologist: Listening to Market Themes

Quick:  What do great symphonies, great novels, financial markets, and the conversations of clients and therapists have in common? Answer:  All follow distinctive themes.  Much of the meaning that we find from all of them lies in our ability to track these themes across their many shifts and permutations. A composer or novelist brings themes…Read More

Category: Commodities, Currency, Fixed Income/Interest Rates, Index/ETFs, Psychology

Jeremy Siegel is not having a good year

Its been a tough year for the U Penn prof. First, the market has gotten cut nearly in half, something many buy & hold investors admit is possible, but is supposed to a rare occurrence. But as we have seen in 2008, and 2001-03, and 1972-73, these sorts of brutal bear markets are a lot…Read More

Category: Index/ETFs, Investing, Markets

8,893 “Bill Millers”

> I am especially pleased to present today’s Think Tank piece by James Bianco. Jim has run Bianco Research out of Chicago since November 1990. He has been producing fixed income commentaries with a circulation of hundreds of portfolio managers and traders. Jim’s commentaries have a special emphasis on: money flow characteristics of primary dealers,…Read More

Category: Index/ETFs, Investing, Think Tank

FusionIQ S&P 500 Equity Market Review

Kevin Lane is one of the founding partners of Fusion Analytics, and is the firm’s director of Quantitative Research. He is the main architect for developing their proprietary stock selection models and trading algorithms. Mr. Lane is a member of the Market Technicians Association. ~~~ As seen below in the S&P 500 has been capped…Read More

Category: Index/ETFs, Markets, Think Tank

Vanguard’s Jack Bogle

Jack Bogle is having an author event at the Barnes & Noble on Fifth Avenue (555 5th/between 45 & 46), at 6:30PM June 17. He recently published a book called “Enough.” Not sure how people feel about Jack. I like his criticism of Wall Street in general, but given what giant shareholders Vanguard is, I…Read More

Category: Corporate Management, Index/ETFs

Buh Bye: GM, Citi Get the Boot

As previously announced, both Citigroup and General Motors will officially get the boot from the Dow Jones Industrial Average this morning. Replacing them were Travelers Corp. and Cisco Systems, respectively. So long . . .

Category: Index/ETFs

Cisco, Travelers into the Dow

As I expected back in 2007, GM is out of the Dow, being replaced by internet powerhouse Cisco (CSCO): Let’s start a pool: At what point in the future will General Motors (GM) ignominiously join Eastman Kodak (EK), Woolworth and others and get tossed out of he Dow Jones Industrials?  And, who will replace them?…Read More

Category: Index/ETFs, Markets