S&P 500 and Nikkei 225 Compared

April 5, 2021 at 5:42 am Leave a comment

On March 22, 2021, we already reported the tight correlation of the worldwide stock markets…check our article.  In our day-to-day comparison, we usually use the DAX; however, equities are not trading today in Germany due to a holiday.

Our correlation study shows a 74% correlation between the Nikkei and the S&P 500 development. Such, the Nikkei 225 functions as a potential forerunner for the S&P 500. By opening 12 hours ahead of Wallstreet, the Nikkei 225 is about 1.33-times more volatile than the S&P 500

The New York Stock Exchange (NYSE) and the NASDAQ are the largest stock exchange operators worldwide, accounting for 56% of the world’s stock value exchanged.

Nikkei 225 and US Exchanges Compared (1/2021, trill. USD)

US and Japan Exchanges

With shares in the value of 6.4 trillion dollars exchanged the Japan stock exchange ranks the closest in size to the US exchanges. For building a correlation, we compare the sector share of the Nikkei 225 and the S&P 500.

Nikkei 225 and S&P 500 by Sector Share

The comparison graph shows similarity, where the major differences show in the sectors of Industry, Energy, Financials, and Consumer Discr.

Listing the Top-Ten Companies in the Nikkei 225, we see the following:

CompanySectorShare (%)
FAST RETAILING LTDConsumer Discr.10,71
SOFTBANK GROUP CORPCommunication6,86
FANUC CORPIndustry3,35
KDDI CORPCommunication2,51
M3 INCHealth Care2,35
TERUMO CORPHealth Care1,95
Top 10 Companies in the Nikkei 225

Nikkei and S&P 500 Six-Months Compared

This week, the FOMC meeting with minutes at 2 p.m. Wednesday might hold the markets back until we get feedback from the FED about the monetary policy and economic outlook. Hence, we focus on shorter-term opportunities indicated by the NLT Timeless Trading Concept, where we simplify life for you, letting the chart will tell when to buy or sell!

Here an example:

E-Mini S&P 500 NLT Timeless Chart April 1 to 5, 2021

NLT Timeless Chart for the E-Mini S&P 500 Futures Contract

The system highlighted multiple long-trading opportunities along with the price move on April 1, 2021. At 6 a.m. ET, our NLT Top-Line shows a Purple Zone: a sign of directional price ambiguity.

Each confirmed trading opportunity stood for a price change of about $450 of the underlying Futures contract. Our charts display on thinkorswim of TD Ameritrade, while most of our day traders execute orders on Ninja Trader due to favorable margins associations.

Let us be your guide to a consistent trader and investor and schedule a free consulting session, where you can see live what our systems can do for you:

contact@NeverLossTrading.com Subj: Consulting Hour

Working one-on-one spots are extremely limited: Do not miss out!

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We are looking forward to hearing back from you.


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Entry filed under: Algorithmic Trading, Day Trading, Futures, Futures Trading, high probability trading, never loss trading, S&P 500, S&P Emini, Stock Market Index, trading system.

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