That was certainly an interesting week. When I wrote last weekend the DAX developed a buy signal I expected a weak performance because all other indicators where just turning into the right direction. After 3 days of increasing performance the FED put more oil into the fire and the rally continued.
A whole week of a positive development, I think it is highly likely we will see this week some investors taking profit. But it does not change my general opinion, the DAX will increase. Right now the index is just half way through the channel.
Even if the newspapers will "read" the speech of Bernanke this week in a negative way and once again will speak about the end of low interests, the FED has to ensure the people in the US have a job. They are not only looking after inflation like the ECB is doing and the unemployment rate in US is still awful. http://www.bls.gov/web/laus/lauhsthl.htm.
Last week I said my favorite stocks in the German DAX would be Volkswagen and Linde. All the others did have very weak indicators. It looks like I was too careful. I was particular surprised by the performance of BMW. I did not expect that. But Volkswagen achieved 6.4% and the DAX 5.2%. The stock passed the upper line of a triangle last Friday. Investors should be prepared for a drop. The stock was not able to go through this line all year long.
Linde achieved with 4.25% less than the DAX. While the trend looks overall good I have major concerns about the strength of the trend. ADX dropped to 14, the volume did not increase but the stock price increased. That is never a good combination and it might be time to find a different investment. Monday will give us a better idea where do go.
Where do go this week? All the indicators of BMW and Heidelberg Cement are looking good. By Lanxess it looks like the correction might be done. A turnaround is indicated by a few indicators but not confirmed yet.
I could continue and write about Daimler (overpriced), Continental (ready for cashing in) or Dt. Post which is apparently a good investment like some German newspapers suggest. But I do want only to share my thoughts about a few things.
I learned earlier this week what I am doing is called "Pseudo Science" and it is not seriously. So published in a German Newspaper. But that is the way I do it. Next time I might take some chicken bones.
But as always: just my 5 cents
Linde achieved with 4.25% less than the DAX. While the trend looks overall good I have major concerns about the strength of the trend. ADX dropped to 14, the volume did not increase but the stock price increased. That is never a good combination and it might be time to find a different investment. Monday will give us a better idea where do go.
Where do go this week? All the indicators of BMW and Heidelberg Cement are looking good. By Lanxess it looks like the correction might be done. A turnaround is indicated by a few indicators but not confirmed yet.
I could continue and write about Daimler (overpriced), Continental (ready for cashing in) or Dt. Post which is apparently a good investment like some German newspapers suggest. But I do want only to share my thoughts about a few things.
I learned earlier this week what I am doing is called "Pseudo Science" and it is not seriously. So published in a German Newspaper. But that is the way I do it. Next time I might take some chicken bones.
But as always: just my 5 cents
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