Nikkei

The Japanese Sun

The Nikkie appears like the only bull market on the planet right now [ok I have mentioned Sri-Lanka and Pakistan before]. But its the only big boy, whose stock market breaks out of a multi-year falling channel in 5 waves. So this time inflation is working. History shows that after deflation inflation works finally when the central bank decides to devalue its currency seriously. From a stock market perspective the worst is over for Japan, wave 5 of the current rally has started with 17500 as a target. I have marked the recent triangular activity as a 4th wave in line with the currency wave count. Note that fundamentals often truly improve only in cycle degree wave 3, and we are in the first cycle degree 5 wave advance in years. So its a stock market bottom and not an economic one for certain, but the path is being created to get there eventually.