Recent Articles in Asian Markets

We remain cautious on the Japan market and believe there is potential for another -12.7% decline and would continue to reduce exposure.

Today we present the equity portion of our Technical Tuesday report sent out last week. We waited for week ending data and put together a number of charts of various global equity markets, and in some cases, on multiple timeframes.

We remain cautious the Japan market as we have mentioned for some time now. The Nikkei has rallied into an area of resistance and offers a good zone to reduce exposure.

A number of the U.S. indices we reviewed are overbought and into a confluence of resistance on a short-term basis. As we noted in last week’s report, “we believe the market is vulnerable to a pullback starting within the next day or two,” the high actually came in on day three.

On a short-term basis, we have a trading sells on the S&P 500, Nasdaq Composite, Russell 2000 and the Midcap 400 (MDY). All of these indices are into a confluence of resistance and overbought. Our intermediate to long-term view remains bullish as we had extreme readings on a number of market internals into the December low.

Volatility brings opportunity, and we sure have seen a lot of that in recent weeks. As we reviewed the a number of market indices and internals, we feel that for most markets, we have seen an internal low and now wait for the external low to take shape.

We like today's market internals and are upgrading the following indices to buy: The Russell 2000, Mid-Cap Index (MDY), and S&P 500. We are currently long the Dow Transports, DAX and CAC indices.

WTI Crude Oil is approaching a range of support between $42—$45. Gold is close to our initial target of 1285 with improving momentum.