Sell, Buy, Sell Again in 27 Days Amid Record Topix Swings
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Japanese shares are swinging by the most on record after a double boost by the nation’s central bank and pension fund sent the Topix index to a six-year high two weeks after it entered a correction.
The Topix rallied 7 percent in two days through yesterday, the steepest gain since March 2011, extending an advance since Oct. 17 to 16 percent following a three-week decline that erased 12 percent. Volatility is playing havoc with a momentum indicator known as the Relative Strength Index, causing it to go from bearish to bullish to bearish within 27 trading days, the fastest reversals on record, data compiled by Bloomberg show. The Topix closed 0.2 percent higher today at 1,371.76.