What Worked Japan - 15 Jul 2016 - Incredible numbers / biggest weekly reversal I have ever seen

What Worked – I have been writing the “What Worked” for more than 7 years. Which means I have written it almost 400 times. Please don’t make fun of my life. I have never seen numbers like this week. Value and Beta bounced like I have never seen them bounce before. FY1 PE had a 60% IC. Beta had an unbelievable 65% IC. Please remember that a 100% IC means that the numbers are perfectly positively correlated. Low PE names that bounce hard were Sumitomo Mitsui Trust (8309) up 25%, Mazda (7261) up 24% and Dai-Ichi Life Insurance (8750) up 24%. Nintendo (7974) dominated the high beta names up 69% this week. But who thought that walking around catching Pokemon would be fun.

The price reversal this week was incredible. 12-month price momentum had a negative 78% IC. Names down over the last year bounced super hard. Minebea (6479) was up 23%, NTN (6472) was up 23% and Nomura Holdings (8604) was up 20%.  On the other side, High Sales growth names that have dominated in the recent months did not do well this week. Square Enix (9684) was down 4%, Nitori Holdings (9843) was down 4% and Cyber Agent (4751) was down 4%.

Who Moved – The good news is that a number of the names also moved up on strong volume. 53 names moved on volume this week. On the positive side, obviously Nintendo (7974) moved on volume. Other than Nintendo, Bank of Kyoto (8369) was up 40%, Ryosan (8140) was up 29% and NSK (6471) was up 25% on strong volume. On the other side, Kyushu Electric Power (9508) was down 6%, Square Enix was down 4% and Yamato Holdings was down 3% on strong volume. 

Summary

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