Today we will talk about several topics. Let’s start with your questions. One dealt with Japanese wine and the other continued investment in semiconductors. From there we will continue to ideas and US indicators.
Since I planned to talk about Japan today anyway, the question about Japanese wine only reinforces this intention.
We will examine three ETFs: GO – The largest hedge fund for investment in Japan, DXJ which gives exposure to Japan by neutralizing the change: wine – dollar and the basket fund for investing in wine against the dollar.
The basket fund that follows the wine-dollar exchange rate is FXY. The fund rises as the wine gets stronger. The graph shows that there is still a chance for the wine to rise. That is as long as it stays above 71. There is another interesting statistic here that I will refer to shortly.
The graph of GO Also interesting. You will see a breakout of a falling trend line, a resistance line, and a 200-day average. You will also see power compared to S&P500. But, if you go back to the graph of FXY And look at the purple line that compares between her GO Look it’s flat. This means that the increase of GO derives in a significant part from the currency and not from the stocks.
One of the hedge funds that allow investment in Japan by neutralizing the yen-dollar ratio is DXJ. There you can see a steady increase over time and in recent months a similar intensity compared to S&P500 which arises (as opposed to GO holding) neutralizing the currency.
Since the pricing of Japanese shares is very cheap, historically, and since Japan is only now starting to enjoy the late exit from the corona, then choosing one of the funds is interesting, depending on what you think about the wine. In terms of graphs, right now, GO better.
Continued exposure to the chip market
The accepted basket radius for chip exposure is SMH. On the one hand there is power compared to S&P500. On the other hand, there is resistance in the 240 area. If you think that the market will continue to rise, then it is likely that the strength will overcome the resistance, and therefore SMH As an element of the case it is relevant. If and indeed you break through the resistance, we will receive in “return” a strengthening of the upward trend of the market. A move above 260 would be a very bullish sign.
We have a solid article today so we will add another solid stock to the list. visa / V. There is a breakout of a descending trend line, there is a breakout of resistance and support above it and there is strength compared to S&P500.
We’ll finish the ideas part with an update to ZIM. There are many readers who are interested in her and after Dee went down the drain it seems she can recover. You see an interesting rounding on the graph but also resistance at $20. A move above $20 would be a very positive sign. On the candlestick chart you can see an interesting support at 18.5 which gives a chance for a further increase and a breakout of 20.
Zim Chart 1:
Zim Chart 2:
What is the latest message from the markets?
The zoom is not on the chart הנאסד״ק 100 Shows a breakout of a descending trend line that was preserved the day after (yesterday). This is how the index is found between a positive breakout situation and a resistance test of the 200-day average. Overall, the index is advancing according to the positive scenario and a move above the 200-day average will strengthen this scenario.
We’ll finish with Our friend the Dow Jones. Our friend because, as you remember, this is the index with which we started the identification of the increase and it was the strongest at the beginning of the increase. Since then it has weakened in favor of the other indices, but as you will see on the purple strength graph, it can begin a period of renewed strengthening. The index has double support above the broken down trend line above so it still embodies upside potential. Overall looks normal.
Hope we continue with easy days. Thank you for your involvement with questions and comments. We will continue on Monday.
The author of the article is Ziv Segal ([email protected]) who deals in the field of financial markets, technical analysis, behavioral finance and mental training, who has diverse occupations in the field in academia and practice.
*The above should not be seen as a recommendation to carry out operations and/or investment advice and/or investment marketing and/or advice of any kind. The information presented is for information only and is not a substitute for advice that takes into account the data and the special needs of each person. Anyone who makes any use of the above information – does so at his own discretion and sole responsibility. The company and/or the authors own and/or may own some of the papers mentioned above.
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