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This is just a quick follow-up to a missive I wrote in January claiming there was no need to join the panic selling in Japan. Sure enough, the Japanese major stock exchange has stayed tough about 30 days later. The ride continues to be wild, but I think it is still worth hanging in there (see disclaimer on discussion of individual stocks). I will not take time to discuss fundamentals. Instead, let us see whether a picture is worth enough words by reviewing a recent chart of the EWJ, the ETF for Japan.
Of course, the current resilience is no guarantee that despair will not take the EWJ lower, but I am betting that the story on Japan has not fundamentally changed due to the Livedoor scandal. As always, be careful out there!