Mastering the Market with Kōno Ko’s Market: Enjoy Trading | Episode 2 [Kōno Ko]

Hiroshi Kouno Profile

After joining Nippon Kanko Kakumei Securities (now Mizuho Securities) in 1971, he engaged in analyst work in the research department. After a stint in the United States, he consistently conducted information and market analysis on Japanese stocks. In 1996 he transferred to an asset management company (now Asset Management One), serving as head of the research department, head of the investment department, and then as managing director and head of the Investment Trust Operations Division. He retired in 2012. Since then, he has appeared on TV and radio. His experience in market analysis centered on Japanese stocks spans nearly half a century.

Newsletter:https://www.gogojungle.co.jp/finance/salons/8812/

The first installment covered the basics, but from the second on I aim to provide reports that are more actionable. In this month’s issue, I consider what can be understood from the slopes of short-, mid-, and long-term moving averages of stock prices from daily closing prices up to one year, and their relative positions.

■ The market's “trend” and “turning points” are judged by the moving average stock price’s “slope” and “position”

The stock price I focus on is the daily closing price, the 5-day moving average line (hereinafter the 5-day line) representing one week, the 20-day moving average line (hereinafter the 20-day line) representing one month, the 60-day moving average line (hereinafter the 60-day line) representing three months, the 100-day moving average line, the 120-day moving average line (hereinafter the 120-day line) representing six months, and the 1-year moving average line (hereinafter the 1-year line).

By the slope and position of each, it is believed possible to identify the market trend and turning points. Now, I will proceed to discuss long-term, mid-term, and short-term.