Japan is also suffering China´s hangover: JPY is stronger and stocks are weaker. Fanuc has come down near 20% from the highs. Do you think is a good moment to increase a position in Japan/Fanuc? Thanks David

David Fuller's view

Thanks for a topical question, certain to be of interest to other subscribers.

Japan is benefitting from QE but has lost momentum recently from a temporarily overextended position.  This is particularly evident from the leading TSE2 Index, and the firmer yen is a momentary headwind.

Fanuc has corrected a temporarily overextended condition and is approaching potential initial support from the rising MA.  Therefore, technically, it has pulled back to a buying range.  However, the question is: are we in a global environment which can produce some temporary overshoots on the downside?

Yes, in my opinion, so I would buy Fanuc incrementally.  This is a wonderful company in an era of accelerating technology, as I have mentioned previously.  For traditionalists, Fanuc is the dominant industrial robotics company and it has virtually no debt.  I may hold Fanuc for the rest of my life, leaving it for my children and grandchildren.  Nevertheless please remind me to lighten my position temporarily when Fanuc next soars in its overall uptrend relative to the rising 200-day (40-week) MA.