Score 9.1 (out of 10): Nikkei (Japan) poised to seasonally rally by +10.2% during the next 90 days.

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What’s Going On Here?

The Nikkei 225 index has bounced back as sentiment among investors buy the dip in global stocks. It also happened as the Japanese yen resumed its strong sell-off. The USD/JPY price has risen by more than 3% from its lowest level this year. A weaker yen is usually positive for most companies in the Nikkei index because it makes their goods more affordable.

Why Now?

Nikkei (Japan) indicates an interesting 90 days seasonal set up. During similar occasions, Nikkei (Japan) shares had a median return of +10.2% – based on 9 historical occasions with 8 of those showing positive returns (89%). This buy signal for Nikkei (Japan) received a high score of 9.1 (out of 10). This insight was generated with last price of 28313.47.

What’s This Company About?

Nikkei (Japan) is in the Equity market index business. Based on the last 2 years’ risk/return profile, this asset is seen as Very Risky. Ticker symbol: ^N225.

What’s My Risk / Reward and Time Horizon?

We found 90 days to be the optimal trade horizon, after testing a number of possible alternatives (accuracy of previous returns). Otherwise consider closing out this trade once the target level of 31201.16 (+10.2%) has been reached. Based on Nikkei (Japan)’s recent up and down swings, LongShortBets suggests considering to set a stop loss level for this insight at 27801.37 (last price at 28313.47), which is equivalent to a -1.8% decline.

Returns during similar periods:

The chart above shows the previous returns (in %) based on similar setups with the most recent ‘insight’ shown under (1), the second most recent ‘insight’ under (2), etc.

Previous episodes:

7.5% (September-2021), 11.8% (September-2020), 12.3% (September-2019), – 3.3% (September-2018), 14.9% (September-2017), 9.1% (September-2016), 8% (September-2015), 11.3% (September-2014), 12.8% (September-2013)

Historical Chart:

Summary:

NameNikkei (Japan)
ViewUp
Star (1 to 10)9.1
Target10.2%
Time90 days
Hit Rate89%

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