Was this it for the index that until last night was up a pennystock-esque 85% in 6 months? According to the supposedly smartest money, hedge funds, who had already started offloading NKY225 exposure, the answer is yes.
From SocGen:
Nikkei still favoured – Hedge Fund investors have backed the Nikkei since it began rallying in November 2012. Although net long Nikkei positions are already beyond their peak (chart on the left below), Hedge Funds still represent nearly one-third (32%) of total open interest, hence their impact remains relatively strong.
[4]
Nikkei time for a pause – But while Hedge Fund’s net positions are still significant, momentum has begun to falter. Indeed, in the three weeks since 23 April, Nikkei positions have stopped strengthening. With the index now matching previous highs in US dollars (chart on right), we think the Nikkei is in need of a breather.
It sure is.