Mr. Tomio Sugimura accurately recognizes the current situation and targets stocks with strong counter-trend rallies

In the September 25 (Wednesday) broadcast, we explained the stocks with the biggest price increases by percentage, and it was a very informative explanation.

October 8 (Tuesday) at 15:12 in the Investment Salon discusses the importance of correctly recognizing the current situation. at 15:12 in the Investment Salon discusses the importance of correctly recognizing the current situation.

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The stock market has suddenly entered a turbulent phase. When this happens, many people (investors) become unsettled and flounder, but calm and measured action is required.

In recent weeks, the author has argued that the investment tactic of "overall caution, individual bullishness" is effective. In other words, stock-picking.

Indeed, external conditions have improved compared with July–August. However, that does not mean the issues are resolved.

The U.S.–China trade talks, Britain's Brexit negotiations, the Hong Kong (pro-democracy protests) issue, and the Middle East situation—all seem to be getting more tangled, don't they?

The author places the first point of the Stock Investment Sure-Win Strategy (eight points) as: "What is essential is to correctly recognize the current situation and to thoroughly implement risk management." This is the know-how for reading the market and preparing for turbulence. If you are dragged by the current price movements, you cannot become part of the winning group.

After all, this world (the stock market) is so harsh that it's described as "3% winners, 97% losers." Therefore, you must listen to minority opinions and act without being swayed by external voices. However, many people become bearish at low price levels and bullish at high price levels.

Well, we understand how you feel... Risk management has two parts: (1) proactive measures, (2) post-event measures. But the basics are to determine price levels and direction, adjust cash position (cash ratio). And more importantly, limit participation to only "winning opportunities, winning stocks"—this is the ultimate sure-fire method.

In sumo terms, it’s "one win, fourteen breaks." In reality, you’d suffer a large net loss and drop in rank, but in stock investing it's a "100% win rate." Market proverbs say, "Resting is part of the market," or "there are three paths of buying and selling that involve rest."

Now, what is the target in this situation (short-term, uptrend-following)? Indeed, focus on stocks with strong counter-trend highs. Specifically, Nomura System Corporation (3940) and two other stocks are worth watching.

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The Nomura System Corporation (3940) mentioned here rose its price on the following day, October 9 (Wednesday).

　As noted, this is the result you’d expect for short-term, trend-following stocks.

Report by Hayakawa

^{Sugimura Tomio Investment Salon https://www.gogojungle.co.jp/re/9MOjuel58Rn5vm8}