The Nikkei 225 is an interesting index to trade. Currently, it seems to me that we are having a downturn for wave 4. Even though on the macro level we an explain it with the US-IRAN conflict, for the market, it is still a perfectly healthy move. If I am not wrong, after this downturn, we have one more leg up to just above the previous high made by wave 3 before we see a serious downturn around the middle of the year.
So here's the projected moves for the Nikkei:
1. SHORT to 22370 (suggest to make no move or just small size)
2. LONG from 22370 to 24475 (suggest to sell puts or long small size)
3. SHORT from 24475 (sell calls, short futures)
What this means is that I am expecting wave 5 move to only slightly exceeds wave 3. If the market will be clearer, we could also see an ending diagonal for wave 5.
So here's the projected moves for the Nikkei:
1. SHORT to 22370 (suggest to make no move or just small size)
2. LONG from 22370 to 24475 (suggest to sell puts or long small size)
3. SHORT from 24475 (sell calls, short futures)
What this means is that I am expecting wave 5 move to only slightly exceeds wave 3. If the market will be clearer, we could also see an ending diagonal for wave 5.