Back-to-back rallies in the U.S. — the first time in a month — worth nearly 550 points (the most in five years) for the Dow, combined with a reversal in the yen back towards 110, and the fact that Chicago N225 futures also rallied for a second day for a two-day total of 685 points to 15,535, which is 375 points (+2.5%) above where Osaka N225 futures closed, all point to a big rally today in Japan.
Market participants, at least in the Western world, seem to think everything is gonna be alright if the Fed cuts again. In fact, everybody knows there are some serious issues at banks and in real estate. However, what’s important here for the equity players is the fact that lower rates are bullish for equities, plain and simple. Add that to a plunge in crude prices Wednesday and notice we are at the end of the month, and you’ll easily see its rally time.
Have fun and remember cash is king!
[...] of N225 futures in Chicago and the simultaneous U.S. rally, the 350+ point jump for the N225 and 375 point gain for N225 futures (exactly matching where futures closed in Chicago) was not a [...]