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February 21, 2006

A bounce in Japan's equities, Tues., Feb. 21, 2006, 6:53 AM

Yesterday morning I pointed out that the Tokyo Stock Exchange had fallen hard for six straight sessions, and was due for some consolidation. Voila, the TSE was up today +3.0 pct or +457 points to 15,895.

If this was the Dow 30, the gain would be +330 points.


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And as I pointed out by referring to a N.Y. Times article this weekend, the trading in Tokyo now is mostly about day trading.

What is going on today is a throwback to 1999 in the U.S., where traders mistook reflation and liquidity for improving corporate fundamentals. You might say, on the one hand, I'm not impressed, but on the other, I have to play the game.

With respect to the latter point you will see in last weekend's Week In Review, I opined that this week was likely to bring news of higher share prices in a rally that started in the U.S. six and a half trading sessions ago.

Just to be clear: equity prices are rallying. For now.

But for every action, there will be a reaction, which comes later.

Btw, Shanghai and Sydney were also strong today, and Europe's open was at 4½-year highs. Obviously the world is not short of cash that wants to play musical chairs.

Posted by Posted by Bill Cara on February 21, 2006 06:53:25 AM | Category: Japan

Discourse

Good morning, Bill! Good to see that you are up and prospering.

Seems to me that Day Trading is becoming the conservative way to invest, even on US markets. Of course, one must be good at it -gg.

Here is a metals news link that I found this weekend which you, and others, might not have seen. They seem to have mastered the art of presenting a LOT of information on one page, and I especially like the SHORT news article summaries at the bottom of the page.

http://www.24hgold.com/default.aspx

Posted by: spot [TypeKey Profile Page] at February 21, 2006 7:46 AM [link]

Sentiment still rather bearish in Shanghai.
BUY BUY BUY!
Shenzhen ETF has been introduced, means more money into equities.
MARGIN-capabilities are being considered. More money= higher prices.
*Dances*(like I know how to dance, lol)

Posted by: FirstConsul [TypeKey Profile Page] at February 21, 2006 8:15 AM [link]

Spot:

The link refreshes on its own keeping time and quotes up to the minute. Thanks for posting same.

Posted by: C.Note [TypeKey Profile Page] at February 21, 2006 8:44 AM [link]