I really don't know how to start off this post, what I want is to wirte my view on a brief comparison between Dow Jones and Nikkei 225. I have actually started typing, then deleted, started all anew then deleted it again. Probably what I have derived does not point to anywhere. Anyway, I think starting off this way would be the best option I see.

I was looking at the indices, and I was particularly interested in Dow Jones and Nikkei yesterday. Both charts seems to be in total contrast of each other.

Fig 1 DJIA Weekly Chart

To me the direction of Dow Jones is quite clear. With the formation of the wedge, it should be heading south eventually. The question is: When? At present I have no idea. Base on the recent days movements, it seems to be dropping at a very low pace. Main reason I think is because it is still inside the wedge. It is also limited by the downward trend line which crosses the lower envelop by 1st Jan 2010. I guess if it decide to break downward, this might be the deadline.


Fig 2 Nikkei 225 Weekly Chart
A look at the Nikkei 225 found a different picture. This chart seems to be at the bottom of the chart. While market already moved much, it is still in bottom formation. Most importantly, this index has broken its downward trendline. This signifies an up trend from here.

If it is possible to buy Japanese stocks, I think now should be the time.