I have owned Nintendo (OTCPK:NTDOY) since it was at 30 and I am still a believer in the company and the stock in the long run. However, I believe the stock has gotten way too ahead of itself. I am initiating a sell at $43 and believe a good re-entry point is $35.
Below, I have provided three charts of Nintendo; a daily, weekly, and monthly. The daily chart looks strong, with the price staying close to the 50 day moving average. However, the weekly and monthly illustrate another picture. Nintendo, according to the weekly and monthly chart, has gotten way ahead of itself. While a pull back has not started yet, I believe last month is the tipping point and we will have a correction in the next 30 days.
Besides a weak chart, I would also not hold Nintendo, or any Japanese stock, because of the latest GDP report for Japan. The latest report shows Japan's economy growing at 3.3%, which is roughly 33% than this time last year. While strong economic growth might be seen as a good thing, only two word pops up in investors minds. Rate Increase. Strong economic growth might cause the Bank of Japan to raise its .5 percent rate. I'd rather sit on the sidelines in the Japanese market for a while.