The Nikkei stock index has remained relatively sanguine since Japan took a turn for the worst after the natural and nuclear disasters that struck Japan in March of 2011. The disasters created horrific supply chain disruptions,
as Japan manufacturing swooned and growth came to a stand still.
Early Monday, Japan released its first preliminary Q3 GDP which rose expanded 1.5% in Q3 quarter over quarter after the 0.3% contraction in Q2 and declines in Q1 and Q4 of 2010 as consumption and
exports rebounded from declines brought about by the March earthquake.
A breakdown of the expenditures showed private consumption grew 1.0% in Q3, while net exports contributed 0.4% to GDP growth. Corporate capital spending
increased 1.1%. At the same time GDP rose 6.0% on an annualized basis.
Although many believe the recovery in Japan could be short lived, a easing bias in China could spur on growth, putting a charge into the Japanese economy, pushing Japanese equities higher.
The Nikkei remains closer to the low end of the current range, but an upside move were the Nikkei breaks above 9200, wouldsignal a upside breakout.
The trade – Purchase a daily binary call option on the Nikkei on a daily close above 9200.
Signal Summary
Asset : Nikkei
The trade : Binary Call Option
Expiry time : End of day
When : On a daily close above 9200.
