Buy Signals From the 30 & 50-Week Moving Average on the Japanese Market

The strong recovery in world equity markets that started in March last has continued throughout the summer. In a previous bulletin email last May, we highlighted that both the 30-week moving average and the Coppock Indicator had given 'BUY' signals at the end of April for several markets. More 'BUY' signals using these indicators were given for several other markets throughout May.

The more conservative 30 & 50-Week moving average indicator, as put forward by Mark Shipman in his book 'Little Effort, Big Money', has given a 'BUY' signal for the Japanese market at the close of business on Friday, 27th August.
For a 'BUY' signal to be given, the 30-week moving average must cross the 50-week moving average while rising. Since 1970, the signal has been effective in signalling further upside over the medium term in approximately two out of three occassions.

Members should study the historical data available at the members section of the web site - Market Buy & Sell Signals. Often, when a 'BUY' signal has been given on the 30 & 50-week moving average indicator the market backs and fills for a while. You can check this for yourself by looking through the historical data. We have taught this indicator at the 1-day seminar since early 2008. The chart opposite shows the indicator for the Japan Nikkei Index at 27th August 2009.
 

Rory Gillen
GillenMarkets
31st Aug 2009

GillenMarkets (www.gillenmarkets.com) Offers Online Independent Investment Advice & Education dedicated to 'Uncovering Value for Investors'.

The Member's Area Offers
Independent advice coupled with time-tested and disciplined approaches to investing are the key steps to investment success. And that is exactly what this website delivers to you. We have direct stock picking approaches for the US, UK and Irish markets where we show you 'What to Buy' and 'When to Sell'. We also introduce you to 'Intelligent' exchange traded funds (ETFs) that discriminate in how they track a market or index and we show you investment companies available at significant discounts. Our Weekly Investment Bulletin is posted to you each Saturday and provides updates on developments in world markets, a review of the stock picking approaches and highlights funds to buy. We show you charts compiled over many years that indicate when the markets are turning and we have a range of fundamental indicators that highlight how the different asset classes are currently valued compared to their long term averages.