Japan – state of the market (Oct 18, 2020) – Part 2

This is a continuation of last week’s post on sectors showing relative strength. You can check out the first batch of sectors here. Below, I have listed out some interesting names in the remaining sectors (Homebuilding, Recruitment, Entertainment & Mortgages).


Sumitomo Forestry (1911.T): consolidating in a tight range post mid-Aug gap up.

Sanei Architecture (3228.T): Power gap up on Friday backed by ~7x volume! I feel buying now would be chasing the move. Better to wait for consolidation for couple of days/weeks.

Human Resources: These are very high beta stocks, so need to exercise a lot of caution. UT Group is ~4x and Outsourcing ~3x from March lows.

UT Group (2146.T): consolidating upwards since Mid-September, think this offers a relatively low risk position if it breaches 3865 on upside.

Outsourcing (2427.T): Good to see some consolidation action last week. Ideally want to get 1-3 more days of tight price action near 1015-1030 which can potentially set it up for another leg up.

Movies and Entertainment:

J-Stream (4308.T): this one is a rocket-ship. Fundamentally, I don’t see how this company can run up so much with not so spectacular growth numbers (see below). Nonetheless, this should be on the list for nimble players out there.

Avex Group (7860.T): Quite a beaten down stock, recently came out of a downtrend around mid-September. Not sure if the recent rally is due to short squeeze or fundamental reasons. Technically, the setup is developing and looks very interesting.

Thrifts and Mortgage Finance:

Aruhi Corp (7198.T): This mortgage financier is on a roll, specially given how financial sector has been beaten down globally.

Charts sourced from investing.com and financials from morningstar.com

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

Disclaimer: This is not investment advice, please do your research before committing capital.