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The "ultimate" catch up trade

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The "forgotten" reflation trade breaking up - size catch up?

Japan is the ultimate cyclical/reflation trade that has spent the year in hibernation practically. Post the huge performance last year, the index has drifted lower building a big flag. Nikkei is breaking above the negative trend line, climbing properly above the 200 day moving average again (not seen since last summer). Nikkei is one of the big global laggards, but don't forget, when this market reignites momentum to the upside, things can move violently.

Some might say, "who cares about Japan?" These days people hardly even look how the Nikkei ended the overnight sessions as China has stolen the show, but we shouldn't "dismiss" Japan. Time for the EWJ to close some of that gap vs SPY...

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