Nikkei is greatly soaring with a large gap up to please new NISA entrants

Hello, I'm the cat owner from Trade Idea Lab.

The new Liberal Democratic Party president is finally decided (maybe), and the week starts with a positive gap. The new NISA participants are probably ecstatic. I’m curious about the gap, but in the near term the plan is to aim for the FE Fibonacci extension level of 1*0% extension at 48,000 yen.

In last week’s Bank of Japan Governor Ueda’s remarks, there was no mention of rate hikes, but October hikes are already priced in, and it would be a positive surprise if they do not raise rates rather than a negative one.

The number of new NISA accounts has surpassed 27 million, and the purchase amount has reached 63 trillion yen. Moreover, the stock market seems likely to rally toward year-end! It’s enjoyable to trade individual stocks, but index investing still performs best and is easier.

In the most recent BOJ monetary policy announcement, the plan to dispose of the ETFs and REITs held was unveiled.

There were many negative reactions, but it’s the opposite.

The BOJ should treat the ETFs it holds as disposal assets and begin revaluing their book values to market prices.

Furthermore, after driving the Nikkei higher, revaluing the ETFs at market value would massively inflate assets and erase the liabilities (government bonds).