First an earthquake with an 8.9 magnitude. Second a Tsunami with a wave 23 feet high sweeping cars. people, building and everything in its path. The Tsunami is much more powerful than a tornado. And now the 3rd largest economy in the world is reeling from the effects of what nature has hurled against it. Makes us realize how mortal we are.
Recently we were doing car shopping and a competing dealership was telling us that Nissan is strongly hit and cannot produce cars. Not sure how much truth there is to that but I was wondering how the Japan ETF (exchange traded fund) is doing under this attack. Not well at all as you can see below.
My exit signal arrived before the major damage that has been done. The unfortunate thing is that the trading business is ruthless and predatory. Traders are like a pack of wolves. They like to feed on the weakest, the youngest and the lamest EWJ gapped down on high volume. Not a good sign at all.
Wow, looks like EWJ "predicted" the earthquake and tsunami with those latest drops. The Nikkei Index did not have such drops.
ReplyDeleteShould be interesting to see the reactions this week in the Japanese and global markets now that the business world understands the effects that the tsunami is having.
I am sure the EWJ trading system was incapable of "predicting" the earthquake or the Tsunami! But clearly there was weakness just prior to it. Perhaps that was because of the bull run tiring or because of fresh fears for the debt load Japan carries. Once a signal triggers, we have no way of knowing how long it will last or how strong the drop wil be. Only fresh events can dictate that. Best to be cautious and back off or switch directions after getting these signals. EWJ has dropped a lot more since this weekend posting..
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