Japan’s win of the World Baseball Classic Championship spills over into exchange traded funds.  iShares MSCI Japan Index Fund (EWJ) is moving up the list to be the 4th largest ETF in trade volume.  Recent reports from the Japanese government indicate the country is overcoming deflation, as aggregate demand has risen above supply for the first time in nearly nine years.  Now markets are waiting to see when the Japanese central bank may start raising interest rates.

EWJ’s top holdings are mostly financial groups, with the exception of Toyota Motor Corp at 6%.  Mitsubishi Tokyo Financial Group makes up 4%, Mizuho Financial Group 3% and Sumitomo Financial Group 2%.

As we watch this ETF grow, it is important to know when to sell.  Not too long ago we spoke with Jen Ryan of Dow Jones about watching the moving average and percent off the high.  As the chart below shows, EWJ is still trading above its 200-day moving average.  And it is now 2% off of its high.


The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.