Last week we suggested shorting three Japanese financials in light of the 10-years JGB price fall, going at the same time long Olympus Corp. and the Nikkei index, in case no more easing was announced on Tuesday night. Kuroda kept monetary policy on hold and so we entered the trade on Wednesday Tokyo early trading.
Well, we were right and lucky enough to catch the perfect timing just before market crashed.
In our virtual traded portfolio we’re up 9% in three trading days so far and we see some more room to profit.
Risk-averse investor may choose to close the position and take profit now while adventurous one may decide to wait some more days for further developments.
Anyway we suggest the latter to monitor every piece of news that leaves BOJ headquarters and to lift the stop-loss threshold to -4% combined losses from current prices, in order to assure an overall 5% gain also in worst case scenario.