PanOrient News | MARKET RADART: Japanese Market Rapidly Recovering from the Mini Crash

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MARKET RADART: Japanese Market Rapidly Recovering from the Mini Crash

Wednesday, March 23, 2011

By Bill Sarubbi

Tokyo- (PanOrient News) The stock markets are expected to hit new highs, oil is expected to stay in a trading range in the $95-$110 area, and for gold, the bull market in gold is still intact.

STOCKS

I had been expecting a low around January 23rd, but the low appears to have been last week on the 18th. This short one-month correction has been no more significant than any that have occurred since the March 2009 low. Typically, the advance-decline line and the difference between new highs and new lows tops out months before the overall market indices do. This has not occurred, so the US market is likely to continue its move upward.

The disaster in Japan led to an unexpected decline in the TOPIX. Presently, it also appears that this correction has completed. The markets have been rapidly recovering from the mini crash and are expected to hit new highs.

The Shanghai index has retreated very little in this turbulent period. This market is likely to exceed the old 3144 high shortly.

The Hang Seng is very oversold and is unlikely to make new lows. However, the index will run into strong resistance at 23750. This market is not as strong as the Shanghai.

The KOSPI shows higher lows in momentum daily and is very oversold weekly, so this index is likely to rally past the 2115 high that was set on January 27th.

OIL

Oil was expected to stay in a trading range in the $85-$95 area. I raise that to the $95-$110 area. Over the next few days, oil is likely to run higher to $110. The next substantial rally is due in May.

GOLD

In the last column, I wrote “From the 18th to the 23rd, there are numerous turning-point projections. This is therefore the most likely time period in which to expect a short-term high.” Thus, there could be a high in the next few days near $1440-$1460 area. The bull market in gold is still intact.

Bill Sarubbi, a strategist and portfolio manager currently operates his own business from Europe. He spends most of his time in Vienna, London, Tokyo, and Abu Dhabi.

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