Good afternoon - What are some indexes to watch while trading the mini Nikkei 225? For example, I heard that yen futures should be watched since the Nikkei is made up on Japanese companies that mainly export goods. When yen futures are down, it may move the Nikkei 225 higher and vice versa. Thank you - Ken
In our opinion the stock indices are all correlated in one way or another both fundamentally, and technically. Fundamentally, because we are in a global economy where the fundamentals of one region affect the other. On the technical side, you could at times see the “transition” of one positive or negative session to another. For example, a positive session on the N. American markets could affect the Asian session as a continuation of positive sentiment. In conclusion, I would say it is vital to follow the N. American indices (S&P, Dow, and NASDAQ) and the European markets (Eurex and FTSE 100). You do need to know the trends globally.
This is just the context for your macro view and could determine if you want to take long or shorts. However, managing the trade, you need to rely on your technicals, and above all risk management.
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Great information Matt, thank you.