This post was just published on ZYX Global Multi Asset Allocation Alert.
Our subscribers are now sitting on decent gains in our two Japan related positions. Most subscribers purchased YCS in the high $30s and now it is around $48. Most subscribers also have about 8% gain in EWJ.
Today the Bank of Japan (BOJ) delivered the third stimulus shot in four months.
The BOJ expanded its asset buying and lending program to 101 trillion yen, an addition of 10 trillion yen.
There was some disappointment in the markets because the BOJ left its inflation target at 1%.
Shinzo Abe, whose party won Sunday’s elections by a land slide, has been pushing the BOJ to change its inflation target to 2%.
In our analysis, it is only a matter of time before the resistance to doubling the inflation target in the BOJ crumbles under intense political pressure. Such crumbling will be very positive for two of our Japan related positions EWJ and YCS.
What To Do Now?
Those in YCS and EWJ may continue to hold.
Those not in these positions may enter only on a pull back or a signal on the Real Time Feed.