The Nikkei just smashed it

Photo: Godzilla (1954)

Japan’s Nikkei index has just capped a record breaking day, rising 7.71% to 18,770.51 points.

Not only was it the largest one-day percentage increase since October 29, 2008, but also the 8th largest gain since 1965!

A massive day in anyone’s language.

Despite the huge rally on Wednesday, the index is down 10.39% from the session high of 20,946.93 struck on August 11.

The daily chart below explains one of the factors behind the enormous rally today – positioning.

Aside from a touch of short covering following a substantial selloff over the past month, modest weakening in the Japanese yen, along with speculation of further fiscal stimulus in China, all acted in unison to send the index soaring higher.

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