Japan Reactor Holds The Cards For The Near Term

Everyone in the world is watching to see the damage from the Japanese nuclear reactors. As news leaks out that the nuclear reactors are leaking more nuclear waste it seems that the major stock market indexes in the United States are declining. When the news reports are released that the nuclear waste is contained the market is bouncing higher. Therefore, short term traders are handcuffed to the news out of Japan for the moment. Traders know that news can always have a short term impact on the market, however, the overall chart patterns and trends will usually tell the story for the market.

Many traders are following the iShares MSCI Japan Index Fund (NYSE:EWJ) this morning. The EWJ is trading lower by 0.22 cents to $9.81 a share. Short term traders can watch for intra-day support around the $9.59 level. Should that support level fail to hold intra-day the next important intra-day support area will be around $9.00.

Canon Inc. ADR (NYSE:CAJ), Honda Motor Company Ltd. (NYSE:HMC), and Sony Corp. (NYSE:SNE) are all Japanese American Depository Receipts that trading lower this morning. Should the news out of Japan suddenly become better regarding the troubled nuclear reactors these stocks are likely to catch a bid higher.

About Nicholas Santiago 576 Articles

Affiliation: InTheMoneyStocks.com

Nicholas Santiago started trading in 1991. In 1997, he became a licensed Series 7 and 63 registered representative. He managed money for a large, affluent private client group. After applying his knowledge to his client base, he decided it was time to begin teaching those interested in learning his methods. He is an expert in Technical Analysis. He has become an accomplished technician in the studies of Elliot Wave, Gann Theory, Dow Theory and Cycle Theory. In 2007, he partnered with Gareth Soloway to form InTheMoneyStocks.Com and realize his dream of educating others about the truth of the markets.

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