Japan's Nikkei index has risen 17 percent this year, far outpacing the S&P's 3 percent gains. And Oppenheimer technical analyst Ari Wald says that Japanese stocks are set to keep outperforming through the rest of the year.
"We are bullish on the U.S., but one of the markets we're even more bullish on than the U.S. is the Japanese Nikkei," Wald said in a Tuesday "Trading Nation" interview.
The technician points out that while the Nikkei has been beating the U.S. lately, if one looks over a 25-year time frame, the Japanese index has been lagging by an incredible 90 percent. That means the Nikkei "has plenty of long-term catch-up potential."
Of course, many American investors have already trimmed their exposure to U.S. stocks in favor of the Nikkei, in addition to other international products.