“East Asia Economy ONLINE column now published” It was 100% reproducible.

Good morning, this is Matsushita.

After the House of Representatives election, the financial markets started with a weaker yen and higher stocks.

The price movements up to last week were forming a trend of a weaker yen and higher stocks, so

they are strengthening that trend, and volatility is expanding.

With a major political event approaching,

as volatility rises,

the risk tends to increase,

but for investors who take on risk,

it is a morning when gains expand correspondingly.

The Nikkei Stock Average had formed 14 consecutive advances for the first time in 56 years by last weekend,

and if this pace continues, it looks likely to close with 15 consecutive advances today.

A strong uptrend is a good thing, but

there is a time when overheating becomes noticeable,

so we should not just become overly optimistic,

but also prepare concrete actions for when the decline begins.

Yesterday was an開催 day for Makoto Investment School

and the course on buying and selling stocks and FX techniques.

Despite the bad weather with approaching typhoons,

all students were eager to participate.

In this course, we include an explanation of cycles in the middle.

Yesterday within the stock course,

we actually confirmed and verified in front of our eyes the latest primary cycle of the Nikkei Stock Average.

As a result, surprisingly,

the latest primary cycle of the Nikkei Stock Average

consists of three 19-week cycles and one 20-week cycle,

and within just a one-week difference, the last four primary cycles

were contained.

This is almost a perfect reproduction of the cycles,

if you look only at the last four cycles,

it is 100% reproducible.

Among them are the low prices after the Brexit decision in the UK last year and the drops after President Trump’s election in the US.

In 2016, the year for cycle traders,

it was surely a profitable year.

Meriman, who wrote the book I read,

“Fundamentals of Market Cycles: Meriman Cycle Theory,”

which was written over 30 years ago, and within it,

“There exists an average 18-week primary cycle in financial markets.”

Yesterday I also taught my students that

cycle theory is a theory born from statistics on vast amounts of historical price data.

A theory proposed in the United States more than 30 years ago

is being repeated in Japanese stock indices 30 years later with

even if only four cycles,

with 100% reproducibility.

There is still a lot about the market that we do not know.

One thing I can say is that

Unknowns and ignorance lead to losses.

Please do not forget that.

Remaining ignorant for many years ahead

and continuing to make profits is not a sweet story.

I think this way,

having learned for 16 years,

and taught for 13 years.

You too, add some knowledge today.That will increase the potential for profit.