Don’t play Trump Game!

Jones industrial average on November 9th finished at $ 18589.69, which was $ 256.95(1.4%) higher than that on the previous day. The Trump shock turned around to become the Trump game. It led to the rise of Jones industrial average.

【U.S. Stocks Surge as Banks, Drugmakers Rally Amid Trump Victory】
http://www.bloomberg.com/news/articles/2016-11-08/u-s-stock-index-futures-little-changed-as-election-results-loom

In charts, although Jones industrial average had a strong resistance at $ 18,400, it came out at once. It can be said that it is a very momentous rise, because of a lot of trading value.

Trump game started from Trump shock.

The Nikkei Stock Average on November 10th finished at 17,344.42 yen, which was 1092.88 yen(6.7%) higher than that on the previous day. The rise of today’s Nikkei Stock Average not only compensated the decline yesterday’s one, but also became the turning point of the strong rise trend. The trading value was estimated 3,412.6 billion yen. It can be said that it was a big trading after a long absence.

In charts, the Nikkei Stock Average has passed through resistance lines against its rise, such as the 5-day moving average line, the 25-day moving average line, and the 75-day moving average line. Today’s Jones industrial average on November is likely to decline due to selling adjustment, but I think that the Nikkei Stock Average will continue to keep high price.

Honestly Trump game is uncertain.

I think that it is not quite a match for now. If you look at the global market in a bird’s-eye view, you will receive a very unpleasant impression. Before the American presidential election, Jones industrial average and the Nikkei Stock Average had risen by Hillary’s superiority. So, Hillary’s loss and Trump’s win were contrary to investor ‘s expectation. The decline of the Nikkei Stock Average on November 9th reflected on the “natural reaction” of the investors. However, somehow Jones industrial average sharply increased rather than fell.

Don’t care about Trump game with one match. Seek the ability to win continuously.

In a market where such a unpleasant impression is received, you should not set any position. Even if you can win big luck with one match, you will not be able to keep winning in the market continuously, because you gained only the experience of victory that is lacking reproducibility.

Caution
The contents of this blog are written based on the personal opinions about Dow Jones industrial average, the Nikkei Stock Average, and the sentiment of short-term investors, medium-term investors, and long-term investors. With respect to the loss caused by investment based on the contents of the blog, I do not take any responsibility.

Thank you,

k-zma

Trump shock! Will Jones industrial average stop lowering at $ 17,800?

Jones industrial average on November 8th finished at $ 73,832.74, which was $ 73.14(0.4%) higher than that on the previous day. Investors were buying into bullish, because they judged that Hillary might win in the American presidential election. However, as already reported, Trump won in the American presidential election. Pay attention whether Jones industrial average will stop lowering at $ 17,800 even in Trump shock.

【Trump Beats Clinton in Stunning Upset of Establishment】
http://www.bloomberg.com/politics/articles/2016-11-09/trump-defeats-clinton-in-stunning-upset-that-rocks-markets

By Trump shock, the Nikkei Stock Average has sharply fallen.

The Nikkei Stock Average on November 9th finished at 16,551.55 yen, which was 919.84 yen(5.4%) lower than that on the previous day. The cause of the decline of the Nikkei Stock Average was “Trump shock”. Most investors judged Clinton to be superior in the American presidential election and took a buying position. However, as the vote progressed and Trump ‘s superiority began to be reported, selling following selling had begun.

The buying and selling price was 3.920 trillion yen. It is considered that the investors who judged Clinton to be superior were selling at a stretch. It can be said that Today’s decline is very strong.

By Trump shock, the Nikkei Stock Average has entered a declining trend.

In charts, the decline in the Nikkei Stock Average is so strong. Below are the signs of declines of the Nikkei Stock Average.

○ Signs of declines of the Nikkei Stock Average
・In the daily chart, the 5-day moving average line and the 25-day moving average line become dead-crossed.
・In the daily chart, the 75-day moving averaging line and the 200-day moving average line did not function as a resistance line.
・In the weekly chart, the 13-week moving average line, the 26-week moving average line, and the 52-week moving average line did not function as a resistance line.

If the conversion line and the reference line in the Ichimoku Kinko Hyo are dead-crossed tomorrow, “Sanyakugyakuten”(the third role reversal), which is a sign of a strong stock price decline, will be formed.

Although we can expect some rebound, basically I think that the probability that the Nikkei Stock Average has entered a declining trend is so high.

Caution
The contents of this blog are written based on the personal opinions about Dow Jones industrial average, the Nikkei Stock Average, and the sentiment of short-term investors, medium-term investors, and long-term investors. With respect to the loss caused by investment based on the contents of the blog, I do not take any responsibility.

Thank you,

k-zma

Don’t invest gambling on profit announcement.

Don’t try to trade across profit announcement dates. Even if the stocks you hold have paper loss, you should liquidate them the day before the profit announcement day.

Profit announcement is not chance.

Some investors regard the profit announcement as an opportunity that they can make a profit, because stock prices are likely to fluctuate greatly the day after the profit announcement day. However, it is too difficult to read how investors respond to the profit announcement. As a result, Trading across the profit announcement days is not so much trading as gambling.

Too difficult to read investor’s sentiment for profit announcement.

Why is it difficult for investors to estimate how other investors respond to the profit announcement? Is it a simple story that if company’s profit goes up, the stock price rises, or if company’s profit goes down, the stock price declines?

No. That’s not a simple story.

Even if company’s profit goes up, the stock price might fall unless it is more than investor’s expectation. Even if company’s profit declines, the stock price might rise unless it is more than the investor imagined.

“Don’t invest gambling on profit announcement.” is introduced in “Swing Trading with Oliver Velez”, which is a very famous book among investors.

【Swing Trading with Oliver Velez】
https://www.amazon.com/Swing-Trading-Oliver-Velez-Wiley/dp/159280151X

I myself have invested gambling once for the profit announcement. On August 3rd in 2015, the stock price of Honda rose, because of its profit announcement. The reason of the stock price increase is in vehicle sales in North America. And then, I bought a Toyota stock on August 4th, which was its profit announcement day. I expected the stock price would rise on August 5, because Toyota’s vehicle share is bigger than Honda’s in North America.

As a result, I got loss due to gambling investment for the profit announcement. Toyota’s profit results were never bad. Although they were rather good, investors didn’t seem satisfied.

Since then, I have never done any gambling investment for profit announcement.

Caution
The contents of this blog are written based on the personal opinions. With respect to the loss caused by investment based on the contents of this blog, I do not take any responsibility.

Thank you,

k-zma

Reduced Trump risk causes Jones industrial average recovery.

Jones industrial average recovery on November 8th finished at $ 18259.60, which was $ 371.32(2.1%) higher than that on November 7th. The factors of the rise of Jones industrial average were that Hillary’s e-mail problem had been solved and the Trump risk was reduced. According to a joint poll by Wall Street Journal (WSJ) and NBC News, Hillary is leading 4 points by Trump in the support rate for the American presidential election.

【Anxiety Drains From Market as S&P 500 Rallies After FBI Letter】
http://www.bloomberg.com/news/articles/2016-11-06/u-s-stock-futures-jump-as-fbi-letter-boosts-clinton-prospects

【Clinton candidate, 4 points lead by latest survey】
http://jp.wsj.com/articles/SB11842517604067003472604582420954211540244

Investors start to take a risk on Hillary’s advantage.

In a daily chart, Jones industrial average had a big positive candle. The next point is whether Jones industrial average can cross over the downward 75-day moving average line. I think there is enough momentum to rise, because of large trading volume.

At first, I thought that the big positive candle was a sign of a short-term rise due to closed trades of short-term investor’s selling position. However, from the point of view of a lot of trading value, investors who saw Hillary as superior set a strong buying.

Just wait for the result of the American presidential election.

The Nikkei Stock Average on November 8th finished at 17,771.38 yen, which was 5,783 (0.03%) lower than that on the previous day. Until the American presidential election is over, we will continue to receive the impression of “wait-and-see”. The trading volume is estimated at 1,077.6 billion, which is less than 2 trillion yen, which is regarded as a standard trading volume.

In charts, the Nikkei Stock Average kept staying at high price and stopped lowering. The Nikkei Stock Average was supported by the 5-day moving average line and the conversion line of Ichimoku Kinko Hyo. The Nikkei Stock Average can’t decide which way to go in the range from 17,000 to 17,300 yen. Needless to say, whether the Nikkei Stock Average will rise or fall depends on the result of tomorrow’s American presidential election.

Caution
The contents of this blog are written based on the personal opinions about Dow Jones industrial average, the Nikkei Stock Average, and the sentiment of short-term investors, medium-term investors, and long-term investors. With respect to the loss caused by investment based on the contents of the blog, I do not take any responsibility.

Thank you,

k-zma

Hillary’s e-mail problem has been solved! But investor’s stance is “wait-and-see”.

The Nikkei Stock Average on November 7th finished at 17,177.21 yen, which was 271.85 yen(1.6%) higher than that on November 4th. The Factor of the rise of the Nikkei Stock average was that Trump risk had been reduced.

However, buying and selling price was 1,971.7 billion yen, which did not exceed the 2 trillion yen, which is considered a standard trading volume. I think there are many “wait-and-see” investors, who try to design their investment strategy after monitoring the results of the American presidential election.

[FBI Absolves Clinton Again, Two Days Ahead of U.S. Election]
http://www.bloomberg.com/politics/articles/2016-11-06/fbi-says-its-conclusions-on-clinton-s-e-mails-not-changed

Signs of the rise of the Nikkei Stock Average appear!

In charts, we have signs of the rise of the Nikkei Stock Average. The Nikkei stock average has been supported by the 25-day moving average line and the 52-week moving average line. Also, if the Nikkei stock average can keep the 17,000 yen level in this vein, the 13-week moving average line and the 52-week moving average line might be Golden Cross. Although the 5-day moving average line is likely to function as a resistance line against the rise of the Nikkei Stock Average, I think it can come beyond the 5-day moving average smoothly, depending on the rise of Today’s Dow Jones industrial average.

Will Dow Jones industrial average rise after Hillary’s e-mail problem has been solved?

Dow Jones industrial average on November 4th finished at $ 17,888.28, which is 0.2% lower than that on November 3rd. The cause of the stock price decline is that the difference of support rates between Hillary and Trump became narrowed in the American presidential election.

However, FBI director Comey has determined that “(Hillary Clinton’s emails) have not changed our conclusion.” And then, Dow Jones industrial average on November 7th is expected to stop lowering.

[S&P 500 Extends Selloff to Longest Since 1980 as Election Looms]
http://www.bloomberg.com/news/articles/2016-11-04/s-p-500-futures-little-changed-before-payrolls-data-elections

[FBI Absolves Clinton Again, Two Days Ahead of U.S. Election]
http://www.bloomberg.com/politics/articles/2016-11-06/fbi-says-its-conclusions-on-clinton-s-e-mails-not-changed

In charts, Dow Jones industrial average has gone under the $ 18,000 and been gradually falling. As described above, since Clinton’s e-mail problem has been solved, the probability that Dow Jones industrial average stops lowing is high. However, if the investor’s sentiment is not improved enough, I expect that Dow Jones industrial average falls to the 200-day moving average line(around $ 17,770).

Caution
The contents of this blog are written based on the personal opinions about Dow Jones industrial average, the Nikkei Stock Average, and the sentiment of short-term investors, medium-term investors, and long-term investors. With respect to the loss caused by investment based on the contents of the blog, I do not take any responsibility.

Thank you.

k-zma

Weekly Investment Schedule (November 7th ~)

Weekly investment schedule is presented below.

Special Events

○Ballot counting of the American presidential election on November 8th.
In Japan time, the ballot counting of the American presidential election will start from 8:00 am on November 9th.

There are two cases when the result of American presidential election will affect the Japanese market.

In the case that the difference of the number of votes obtained is large between Hillary and Trump, the result of the American presidential election will make a significant impact on the Nikkei Stock Average in the afternoon session of Japanese market on November 9th.

However, this American presidential election is expected to be “head-to-head”. In the case of the head-to-head election, the determination of the winner might be up to the night on November 9th in Japanese time. The result of the American presidential election will be interwoven into the Nikkei Stock Average in the morning session on November 10th.

The following is the details of the investment schedule.

November 7th

Japan: Publication of proceedings subject matter of the meeting of the Bank of Japan(September 20-21 days held)
Japan: Announcement of financial results (From April to September): Teijin, Japan steelmaking, LIXIL, Nissan, Isuzu, SCREEN Holdings Co., Ltd, Yamaha, Mitsubishi Estate, Softbank
Europe: Eurozone finance ministers meeting
United States: the labor situation index (LMCI, October)
United States: Consumer credit outstanding (September)

November 8th

Japan: Diffusion index bulletin (September)
Japan: Announcement of financial results (From April to September): Obayashi Corporation, SHIMIZU CORPORATION, Kashima, Ajinomoto, Isetan Mitsukoshi, Toray, Kubota, Daikin, Toyota
Europe: The European Union (EU) finance ministers council
America: 3-year government bond bid
United States: Ballot counting of the American presidential election

November 9th

Japan: International balance of payments (September, April to September)
Japan: Trade Statistics (Beginning and middle of October)
Japan: Economy Watchers Survey (October)
Japan: Announcement of financial results (From April to September): House, JGC Corporation, Shiseido, Meiji HD
China: Consumer price index, industrial shipping price index (October)
United States: Wholesale inventories, wholesale sales (September)

November 10th

Japan: Corporate goods price index (Bank of Japan, October)
Japan: Option SQ
Japan: Announcement of financial results (From April to September): Taisei Ken, Yakult, Otsuka HD, Sumitomo ore, Toshiba, Mitsui not, Resona HD, T & D, NTT
China: Internet mail order “Single Day”
United States: Consumer confidence index preliminary (University of Michigan examined, November)

November 11th

Japan: Checking account factors affecting prospects
Announcement of financial results (From January to September): Lion, Uni-Charm
Announcement of financial results (From April to September): DeNA, Nisshin steel HD, Hitachi Zosen, Suzuki, Marubeni Corporation, Mitsubishi Corporation, Marui G
Australia: Retail Sales (September)
United States: Employment Statistics (November)
United States: Trade balance (September)

Caution
The contents of this blog are written based on the personal opinions. With respect to the loss caused by investment based on the contents of this blog, I do not take any responsibility.

Thank you,

k-zma

Trump shock has made Dow Jones industrial average and the Nikkei Stock Average fell.

Dow Jones industrial average on November 3rd finished at $ 17,930.67, which was 0.2 percent lower than that on November 2nd. The cause of the decline is due to investor’s sentiment exacerbated by the news about Trump’s advantage for the American presidential election. Dow Jones industrial average had risen, interweaving Hillary’s advantage.

Although the interest rate hike in December was implied by Ieren, who is a Federal Reserve Chair, it was interwoven into Dow Jones industrial average.

Therefore, news about the American presidential election gave lager impact to Dow Jones industrial average than those about the interest hike in December. It means that most investors are interested in the American presidential election rather than the interest hike in December.

[Stocks Almost Always Rise Before an Election. Not This Year]
http://www.bloomberg.com/news/articles/2016-11-03/another-norm-breaks-in-political-season-as-stocks-drop-into-vote

In the chart, Dow Jones industrial average has been under $ 18,000. The 5-day moving average line might push the higher quotation of Dow Jones industrial average.

The Nikkei Stock Average declined in the speculation of the American presidential election.

The Nikkei Stock Average on November 4th finished at 16,905.36 yen, which was 229.32 yen(1.3%) lower than that on November 2nd. The cause of the decline is uncertainty of the American presidential election by the support rate rise of Mr. Trump, which made investor’s sentiment worse and worse while the Japanese market was closed. Also, exchange rate has fluctuated up to $ 1 = 102 yen latter. Yen continued to strengthen against dollar. The stock price of export-related companies fell mainly.

Close out a long position as soon as the birth of President Trump has been tinged with reality.

In the daily chart, the Nikkei Stock Average significantly fell for the second successive day. 52-week moving average line(about 17,000 yen) did not fully function as a support line. I think that the Nikkei Stock Average will not fall, as long as there is nothing of a great extent, because the 75-day moving average line and the 13-week moving average line is functioning as a resistance line of the decline of the Nikkei Stock Average.
But, the birth of President Trump has been tinged with reality, it is strongly recommended that you should close out a long position. It is not exaggeration that the Nikkei Stock Average might fell by ¥ 16,300 ~ 16,600.

Caution
The contents of this blog are written based on the personal opinions about Dow Jones industrial average, the Nikkei Stock Average, and the sentiment of short-term investors, medium-term investors, and long-term investors. With respect to the loss caused by investment based on the contents of the blog, I do not take any responsibility.

Thank you.

k-zma

Support lines and resistance lines monitored by most investors.

What do most investors regard as resistance lines and support lines to expect the rise and fall of stock prices?

What are resistance lines and support lines?

First of all, I’ll explain resistance lines and support lines themselves before specifically introducing resistance lines and support lines.

Resistance lines are the lines to resist the rise and fall of stock prices. If the resistance line is above(below) the stock price when the stock price is rising (falling), rise(decline) become dull at the same time as the stock price has reached the resistance line. Stock prices might also turn to fall (rise).

Support lines are the inverse of the resistance lines. Resistance lines will interfere with rise and fall of stock prices, but support lines make roll to support rise and fall of stock prices. In other words, when the support line below(above) the stock price when the stock price is rising (falling), the stock price will receive the support of the rise(decline) at the same time that the stock price has reached the support line.

Support lines and resistance lines specifically monitored by most investors.

What do most investors regard as resistance lines and support lines? Resistance lines and support lines on a daily chart, a weekly chart, and a glance equilibrium table(Ichimoku Kinko Hyo) are presented bellow.

■A daily chart
5-day moving average line
25-day moving average line
75-day moving average line
200-day moving average line

■A weekly chart
13-week moving average line
26-week moving average line
52-week moving average line

■ A glance equilibrium table(Ichimoku Kinko Hyo)
Conversion line(Tenkan-sen)
Reference line(Kijun-sen)
Lagging line(Chikou span)
Preceding span 1(Senkou span A)
Preceding span 2(Senkou span B)

What is very important here is that “most” investors regard the lines and the spans above mentioned as the resistance lines and the support lines. In order to win in the stock investment, we need to accurately make a decision whether to buy or sell the stocks according to whether most investors feel like buying or selling. It is very important for us to know what most investors monitor and how they feel.

Some investors monitor the 7-day moving average line rather than the 5-day moving average line, nevertheless most investors monitors the 5-day moving average line. This is one of the typical loser’s cases.

Your next action

Change the setting of the char software you use every day to display the lines and the spans introduced above. And, think of how most investors feel now according to the charts to design a investment strategy.

Caution
The contents of this blog are written based on the personal opinions about resistance lines and support lines, and the sentiment of short-term investors, medium-term investors, and long-term investors. With respect to the loss caused by investment based on the contents of the blog, I do not take any responsibility.

Thank you.

k-zma

Uncertainty of the American presidential election makes a large impact on the Nikkei Stock Average.

Dow Jones industrial average on November 1st finished at $ 18,037.10, which , was 0.6% lower than one on October 31st. The cause of the share price decline is the deterioration of investor sentiment that comes from the Uncertainty of the American presidential election. Most investors had designed the investment strategy based on Clinton win. However, as Trump was taking advantage, investors have been forced to change the investment strategy.

[U.S. Stocks Fall to July Low as Election Anxiety Rises Amid Fed]
http://www.bloomberg.com/news/articles/2016-11-01/s-p-500-futures-rise-as-china-data-ease-growth-fears-before-fed

Can Dow Jones industrial average stay over $ 18,000 ?

In the chart, Dow Jones industrial average has been barely supported by investors at the edge of $ 18,000. You must be careful if Dow Jones industrial average finishes under the $ 18,000 at the closing. Possibility that Dow Jones industrial average plummets will be very high.

Direction of the Nikkei Stock Average will be determined by fluctuations of Dow Jones industrial average, while Japanese market is close.

The Nikkei Stock Average on November 2nd finished at 17,134.68 yen, which was 307.72 yen (1.76%) lower than one on November 1st. The cause of the decline is that Trump’s support rate rises for the American presidential election and the American presidential election result has become uncertain. In addition, Yen becomes strong against the dollar. The stock of companies that make up the Nikkei Stock Average was sold widely.

In the daily chart, Nikkei Stock Average fell significantly. Fortunately, in the weekly chart, it is supported by the 52-week moving average line.

However, there is also a possibility that Nikkei Stock Average will plunge under the 52-week moving average line, depending on the fluctuations of the Dow Jones industrial average on November 2rd and 3rd.

Especially, be careful on November 3rd! I think that it is November 3rd when Japanese market is close and foreign investors might play a funny trick on the exchange rates.

Caution
The contents of this blog are written based on the personal opinions about Dow Jones industrial average, the Nikkei Stock Average, and the sentiment of short-term investors, medium-term investors, and long-term investors. With respect to the loss caused by investment based on the contents of the blog, I do not take any responsibility.

Thank you.

k-zma

Just feel “wait-and-see” mood in worldwide stock market.

Dow Jones industrial average on October 31st finished at $ 18,142.42, which was 0.1 percent lower than one on October 28th. It seems that we don’t have to take into account the probability of the decline of Dow Jones industrial average. However, the downside risk of it is enhanced by two kinds of news below.

1. There is a growing uncertainty over the American presidential election results. In the American presidential election, the difference of the support rate between Clinton and Trump has been reduced.

2. Futures prices for crude oil WTI has been falling. Some countries try to seek a production cut participation exemption, although production cut agreement is almost made.

【Bonds Climb as Oil Plunge Damps Inflation Jitters; Ruble Slumps】
http://www.bloomberg.com/news/articles/2016-10-30/mexican-peso-falls-with-s-p-500-futures-as-clinton-s-lead-slips

【One Measure of Risk Just Hit Its Highest Level in Four Months】
http://www.bloomberg.com/news/articles/2016-10-31/s-p-500-futures-little-changed-as-investors-await-fed-election

Wait until next week! A strong point might appear

The Nikkei Stock Average on November 1st finished at 17,442.40 yen, which is 17.38 yen (0.1%) higher than one on October 31st. Announcement of the Bank of Japan that reaches a consensus of investors didn’t make a major impact on the Nikkei Stock Average.

Buying and selling price (2,109.5 billion yen) has been exceeded over 2 trillion, which is considered to be a standard trade. It feels like to come back in trade, in spite of the fact that
there are considerable events, such as FOMC and the announcement of the US employment statistics.

In the chart, the Nikkei Stock Average is likely to go up. The Golden Cross of 13-week moving average line and 52-week moving average line will be an important point of the rise.

Financial events and announcement of financial results still continue.

Check diligently the weekly investment schedule on the following link.

Weekly Investment Schedule (October 31st ~)

Caution
The contents of this blog are written based on the personal opinions about Dow Jones industrial average, the Nikkei Stock Average, and the sentiment of short-term investors, medium-term investors, and long-term investors. With respect to the loss caused by investment based on the contents of the blog, I do not take any responsibility.

Thank you.

k-zma

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