Nikkei Breaks Down

The Japanese Nikkei stock index ($NIKK) broke important support today. Here's the chart, which shows it better than I can tell it (18 month daily candlestick plot):



And for those who think technical analysis is worthless, I ask how many fundamental analysts have had the same track record as the 200 day moving average for the $NIKK over the past 18 years:



The last chart I highlighted with a similar important breakdown was Ireland (see recent post here and older post on Ireland here). Ireland's stock market (using $IEDOW as a proxy) was down over 6% today, so don't think what happened today in Japan's stock market isn't important.

Gold had another great day while Gold stocks had another lousy day. I continue to wait patiently to get my greedy hands on some Gold stock indices at a lower price. In the mean time, I remain long physical Gold and heavily short the stock market. The next few days have the potential to be quite interesting...