Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Johnny Canuck who wrote (36104)	2/6/2002 2:48:30 PM
From: Johnny Canuck	Read Replies (1) \| Respond to of 68116

It is time for traders to yet again monitor the Japanese economy and particularly the Nikkie. Over the next several weeks Japan has the potential to cause great harm to the US stock market. In April Japanese financial institutions are required to "clean" their financial books, writing down investments (real estate, stocks etc) to their true market value. There is a high probability that some large Japanese financial institutions will go belly-up as a result of this much-needed requirement. Many Japanese financial institutions still carry their many worthless investments on their books at cost (for example JDSU closed on Friday below $7 but a Japanese bank that purchased JDSU stock back in the dot com days at $150 shows an asset on its books of $150. In two months it will required to show an asset worth $7). The effect of this new rule has already begun to make itself somewhat known, with the Nikkie recently falling below the 10k mark. Traders waiting for the clo! wn analysts and talking heads on CNBS to report on this potential problem will find themselves yet again uniformed until it is too late. Traders should keep a VERY close eye on Japan over the next few weeks. Needless to say a cash heavy bias for the next several weeks may be the most prudent course of action for traders. Traders will soon learn that the "new" bull market talked up by the clown analysts and CNBS "reporters" is nothing more than another bear-market rally buysellshort.com