ASX 200 and Nikkei 225 Edging Higher respectively, two major markets of Japan are making a big push to break the $200 mark. With one day left in September, the Japanese Markets are holding their own on the strength of their economy. Both markets have reached this level by a large margin.
One notable market to watch is Nikkei 225. On the back of a strong economic report, Nikkei 225 is edging higher. This particular market is one of the biggest to hit its resistance level, which is around $195. With both ASX 200 and Nikkei 225 make a big push, it looks like both of these markets will break the $200 mark. The question is if they will get there before Friday, September 6th.
If you were to look at the ASX 200 Index over the last couple of months, you will notice that the upward momentum is now showing signs of slowing down. This is not surprising, as many investors have been watching the US Dollar’s depreciation over the last year. It is believed that the Japanese Government is concerned that US Dollar strength is increasing Japan’s trading deficit.
With these two markets are making an effort to break above the resistance level, it seems that Nike, Toyota, Sony and other companies who produce athletic wear are all making big moves. With this type of support, companies like Adidas and Pepsi will likely be able to withstand this type of push. This is not surprising. Companies that create athletic wear products will continue to gain strength. As an investor, if you are looking for a stock with high liquidity, then this is probably not the best market to purchase in.
As far as Nikkei goes, it has made its biggest move since hitting a low of around $170. The current uptrend looks to continue into the fall. As this market continues to make a comeback, it would not surprise me if it reaches the $200 mark. However, I don’t expect it to get over this level in a hurry.
Looking at the markets, it does look like the stock market is taking a breather after making a big push in the last couple of months. With this said, many investors are looking for bargains. as seen in the fall in the Japanese markets. If you are one of those investors, you may want to look for stocks that have seen a strong push on both the ASX 200 Index and Nikkei 225 Index. as they may be looking for long term growth.
Nikkei is also holding a rally that looks to continue into the middle of October. This may be a good time to buy, if you are looking for the best possible trading opportunity. With the ASX 200 Index is closing around the $188, this makes it a great trading opportunity.
There is no doubt that Nike, Toyota and other corporations who create athletic wear will continue to gain strength in the coming days and weeks. It would be hard for this type of company not to come out with another top selling product. With the ASX 200 Index around the same as its all time highs, you have got to be careful if you plan on investing in a good stock like Nikkei or ASX 200.
When it comes to the Nikkei, it seems to be holding strong on the back of a weaker yen and US dollar. As mentioned before, if the Nikkei was to reach its all time highs, it would be a good buying opportunity. However, if this happens it would be a bit difficult for a company like Nike or Toyota to make a profit. Therefore, unless they can turn around their business and gain strength, you should think twice about buying this stock.
One thing that is interesting about this stock market is that the numbers that are available to watch do not seem to show any signs of slowing down. While the Nikkei has dropped off its highs, the number of stocks on the Nikkei chart is still up. This means that this market will continue to rise. and there is a good chance that it may hit an all time high in the fall.
The bottom line is that while Nike and Toyota may be on the rebound in the Nikkei, the real question may be, can Adidas or Pepsi come out with another top selling item. If so, will it be the next big thing? Hopefully we can find out soon.