Tuesday, March 15, 2011

Posted this back on Feb 10th 2011


"Knight Capital has released a sovereign roadmap Catalyst Calendar which is a must read for anyone who trades with more than a 15 millisecond eye on the markets. And while everyone is now focused on what is going on with the Chinese tightening regime (with expectations of two-three more liquidity tightening steps over the next several months) with much speculating over just how priced in all this is (not much if one looks as the Bombay Sensex or even the SHCOMP for that matter), the real focal point should once again be on Europe. The reason: March is coming fast, and March will likely be the cruellest month for Europe, and possibly for the stock markets, and serve as the catalyst to introduce QE3 in all its glory"

I believe Japan's market will finally bottom after this aftermath and complete it final bear market low that has been occurring for 11 years this April.

I would be a big buyer of Japan at about 7700 on the Nikkei, which will give it its double bottom pattern. This is about 16% lower on Japan's index from here, or 7% from yesterday's low in the Nikkei.