He who trims himself to suit everyone will soon whittle himself away.
Updated July 2020
DAX Index: Time To Buy Or Sell?
Again, the talking heads are claiming that there is a pattern that overtly implies that the Dow tends to follow the DAX. When the markets were free or had some elements of freedom in them, one could give some credence to these patterns, but today where fraud and manipulation are the order of the day……. Such patterns have to be taken with a jar of salt. By maintaining an ultra-low interest environment for an unusually long period of time, the Fed has fostered an environment that rewards speculators and destroys savers. Nothing could be more insane, but this is the predicament most people find themselves facing today.
The only pattern that matters today is whether the Fed stops manipulating the markets or not. So for now, it could be quite dangerous to base major decisions on patterns only. Furthermore, if Peter thinks, debt is good, then there is a strong chance that Paul will follow suit. Central bankers in Europe and the U.S. and a host of other nations have created the environment that promotes speculation; the era of easy money is not going to come to an end in the near future.
Do not follow the crowd or popular experts, for other than telling a good tale, their so-called expert advice is best left for the fishes. Thus, we feel that the DAX like the Dow is paving the way for a much stronger move up, after a test of the current lows.
Strategy for the DAX Index
The DAX is currently running into a zone of resistance; it needs a monthly close above 12990, once this is achieved it will pave the way for a set of new 52 week highs. Use strong pullbacks to open positions via the ETF DAX and continue playing the trend until the DAX at least tests the 15000 ranges.
For those of you looking to buy german stocks, the following candidates might make sense.
SAP and FMS DB, ADDYY and finally AIXG, which is the most speculative play.
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Articles of Interest:
The Dow is getting ready to Soar (Oct 21, 2018)
Gold prices set to jump in 2015? (Sept 22)
Market Selloff; is it time to panic (Sept 12)
Currency wars detonate (Aug 27)
The Gold Bull is Dead (Aug 21)
Currency wars intensify (Aug 20)
Contrarian investing Guidelines for beginners (August 14)
Market Shenanigans (July 30)
Free Markets no longer exist (June 2, 2015)
Religious Wars Escalating (May 24)
Two key Market Indicators rendered useless (April 20)