This post was just published on ZYX Global Multi Asset Allocation Alert.

Money flows into our Japanese position EWJ are reaching a short-term extreme.  Extremely positive money flow is a contrary signal.  The way it works is that when money flows become extreme, not many buyers are left to push higher.

What To Do Now?

Our long-term target for EWJ is $13, however a small pullback is likely.

Now it is a matter of personal preference.  Those who do not mind taking profits now with the plan of entering the position again at a better price may consider taking profits and exiting the position in the zone of $9.90 to $10.30. As of this writing, EWJ is trading at $9.94.

Large accounts may consider exiting in small tranches as EWJ goes higher, at the same time protecting the gains with a series of tight stop losses.

Small accounts may obviously exit in one shot.

Those subscribers with very long-term horizons, who would rather not trade often and do not see a need to lock in the gains, may consider continuing to hold the position until the target is reached.

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