100 days ago • Posted by Charles-Henry Monchau

What a breakout for the Nikkei 225!

A little more than a month ago, JPM Morgan Quant strategist Kolanovic had a great Nikkei break out call: "Dealer hedging flows near key knock-out barriers, positive seasonality into year-end and the recent dip in Nikkei implied volatility make the cases of buying calls more attractive". As the chart below shows, we now have one of the cleanest break out moves we have seen in a long time for an index - source: JPM, The Market Ear.

Nikkei 225 index