We’ve received so much rainfall these past few days here in Vermont that fish are crossing the roads. It’s been a soggy, messy Memorial Day weekend. Speaking of messy, it’s already Monday in Asia and the Japanese stock market just opened for trading. The Nikkei 225 is plunging right out of the gate (down 3% as I’m writing.) The Nikkei’s had a remarkable run in 2013, up 40.6%, so the benchmark is obviously entitled to a pullback. However, the 6.5% sell-off on Thursday and Friday is a little steep for my comfort level – it’s the equivalent of a 995 point drop in the Dow. My risk management strategy for Japan stocks has been on a buy signal since Thanksgiving, but I’ve now got a close eye on the exit door. (Photo credit: Vermont Outdoor Guide Association)
Please note that my readings will change without notice, so please don’t buy or sell solely based on anything you read in this blog.