Tuesday, September 23, 2014
Japan is flying high but the American ETF players don't know it
Hey, lookie dat. Japan's broken out of a consolidation and is flying high. Score one for Michael Shaoul and his long-Japan stance.
But wait... this is the American-listed Japan ETF and it's still only in a boring consolidation. What gives?
Well, CJP.TO is yen-hedged and EWJ isn't. Thus I guess CJP.TO is grabbing the Nikkei new highs that EWJ misses out on due to yen-dollar, I guess.
This gives several reasons to like buying CJP.TO right now;
1. It's going up.
2. American TA wankers don't know enough to buy Japan yet, cos the American chart hasn't given a signal.
3. If the US market continues to underperform relative to last year's blowout, Americans will eventually see Japan as the only clean shirt in the wardrobe.