09Nov2:14 pmEST

Slugging It Out in Japan

With Japan's Nikkei rallying to new 29-year closing highs, I am reminded of one of the best sports memoirs ever published which I read back in 1991, shockingly a good 29 years ago. 

Slugging It Out in Japan: An American Major Leaguer in the Tokyo Outfield by Warren Cromartie is a great, fun, fascinating read. 

Since then, let's be honest: Japan has drifted into oblivion in some aspects, often derided for their zombie banks and ZIRP/QE policies here by the likes of Alan Greenspan. Of course, the joke was on us, as the global financial crisis of 2008 saw us follow their lead anyway. 

However, on the EWJ, country ETF for Japan, you can see a near-three decade base threatening to uncoil higher. 

So is Japan back as a global power? 

HMC and TM are some obvious and iconic Japanese automakers, and they sure are tempting on the long side here.

However I present this chart and thesis to drive home the idea that any semblance of global growth ought to be widely bullish for the downtrodden oil stocks and materials miners. They have been pounded for years on end while growth/tech was bid into the sky, to the point where, along the lines of a reversal in rates, any changes to financial models would see the market reprice oil stocks and miners aggressively. 

As for the EWJ, breaking and holding over $65 becomes the next breakout test I am eyeing. 

A Long Time Loading Stock Market Recap 11/09/20 ...


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