Tips & Ideas 

Turning Japanese

The IC Coppock indicators gave no buy signals in January, unsurprising given the chaos that gripped markets around the world as 2014 got under way. Six major markets did give sell signals, though, along with a handful of sectors and emerging markets. Chief among these negative indicators was a sell on Japan's broad-based Topix index, which by last week had fallen 13 per cent from its 8 January high of 1306 as the yen suddenly found itself a safe haven for investors seeking refuge from the sell-off in emerging markets currencies. A weak yen is an important component of Abenomics, making Japanese exports more competitive - the currency fell 18 per cent last year relative to the US dollar but appreciated more than 4 per cent in January and early-February.

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