{"id":37503,"date":"2013-04-12T02:49:44","date_gmt":"2013-04-12T06:49:44","guid":{"rendered":"http:\/\/countingpips.com\/forex-news\/?p=37503"},"modified":"2013-04-12T02:49:44","modified_gmt":"2013-04-12T06:49:44","slug":"friday-charts-panic-in-japan-and-why-businesses-hate-government-too","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex-news\/2013\/04\/12\/friday-charts-panic-in-japan-and-why-businesses-hate-government-too\/","title":{"rendered":"Friday Charts: Panic in Japan and Why Businesses Hate Government, Too"},"content":{"rendered":"

By WallStreetDaily.com<\/u><\/a> <\/p>\n

When Friday rolls around, we roll out the charts in the Wall Street Daily Nation<\/em>.<\/p>\n

After all, a picture is supposed to be worth a thousand words. So we figure, why not embrace it?<\/p>\n

This week, we’re serving up some timely Japanese economic data.<\/p>\n

We’re scoffing at all the bears. (Then we’re making sure we have good reason to be so brazen.)<\/p>\n

And, last but not least, we’re revealing the single most encouraging data point we’ve seen all week.<\/p>\n

Take a look and be sure to let us know what you think!<\/p>\n

Buy, Buy, Japan?<\/b><\/p>\n

Forget that the Nikkei 225 Index is up 23% over the last three months. (Can you say momentum?) Or that I was bullish on Japanese stocks way before it was cool<\/a>.<\/p>\n

The only “Japan talk” going on this week involves government bond yields.<\/p>\n

\"\"<\/p>\n

They just experienced the “sharpest three-day steepening [spike]… since April 1995,” according to Nomura.<\/p>\n

That has some folks fretting about a (gasp) default. But everyone needs to “simma down now<\/a>.”<\/p>\n

I know the spike was sudden and all. But yields didn’t break out into uncharted territory. In fact, they were much higher, relatively speaking, only a few weeks ago.<\/p>\n

A Correction is Coming! A Correction is Coming!<\/b><\/p>\n

The market is so, so, so<\/em> overdue for a correction, right? Well, that’s what the talking heads keep telling us.<\/p>\n

Riddle me this, though, Batman… Why isn’t anyone betting on it?!<\/p>\n

\"\"<\/p>\n

The latest short interest report for the S&P 1500 Index reveals that bets against stock declines remain near all-time lows. The average short interest as a percentage of float checks in at 5.6%.<\/p>\n

Now, the “smart money” has a pretty good track record of increasing their short bets ahead of stock market declines.<\/p>\n

As you can see, short interest spiked ahead of the mid-year swoons in 2012 and 2011. And it shot to the moon leading up to the financial crisis.<\/p>\n

So what gives this year?<\/p>\n

Well, considering we’re so <\/em>overdue for a correction, it must be that the smart money suddenly got stupid, right?<\/p>\n

In all seriousness, I don’t have a crystal ball. But if a correction was<\/em> so clearly in the cards, we should expect to see short interest creeping higher. And it’s not.<\/p>\n

Sell in April and Go Away?<\/b><\/p>\n

Now that I’ve chastised all the bears, I have a confession. I wouldn’t be surprised one bit if stocks took a breather soon. I mean, that’s exactly what they did right around this time last year.<\/p>\n

\"\"<\/p>\n

Of course, they then proceeded to rally back in a big way. So bring on the d\u00e9j\u00e0 vu, Mr. Market! We can handle a brief selloff – followed by a monster rally. I promise that you’ll get no complaints here.<\/p>\n

Good News for Earnings, Bad News for the Government<\/b><\/p>\n

I’ve featured the NFIB Small Business Optimism Index<\/a> here before. The latest reading reveals that Washington is still a major problem.<\/p>\n

\"\"<\/p>\n

The good news is, only 17% of survey respondents cited poor sales as their biggest problem. Could it be that the economy is actually recovering? Say it ain’t so!<\/p>\n

All kidding aside, that’s encouraging news in relation to the two metrics we talked about on Wednesday<\/a>. It could point to a much better quarter for sales than anyone’s expecting.<\/p>\n

That’s it for today. Before you sign off, though, do us a favor. Let us know what you think about this weekly column – or any of our recent work at Wall Street Daily<\/em> – by sending an email to feedback@wallstreetdaily.com<\/a> or leaving a comment on our website<\/a>.<\/p>\n

Thanks, and enjoy the weekend!<\/p>\n

Ahead of the tape,<\/p>\n

Louis Basenese<\/p>\n

Article By WallStreetDaily.com<\/u><\/a><\/p>\n

Original Article: Friday Charts: Panic in Japan and Why Businesses Hate Government, Too<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

By WallStreetDaily.com When Friday rolls around, we roll out the charts in the Wall Street Daily Nation. After all, a picture is supposed to be worth a thousand words. So we figure, why not embrace it? This week, we’re serving up some timely Japanese economic data. We’re scoffing at all the bears. (Then we’re making … <\/p>\n

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