As discussed last week I expected the DAX to go back to the upper line of his positive trend channel. I stressed it might take some more days to get a stable trend again. It looks like I was right, it will not be easy to go back up.
The index really did not know where to go last week. One day up and the other day down. I do not think that was due to the long weekend in the States. The DAX volume looks quite OK to me. I think the main reason is the "Shorties" still have their party. You can read all over the German media, the market is right to go short. I have my doubts that they are right.
The DAX created on Friday a buy signal. The index is still on the lower line of the positive trend. Only one indicator developed a buy signal and all the others are still looking terrible. We can not expect a strong increase this week. But the time of a massive correction is over. The Short-DAX underlines this. This index developed a sell signal on Thursday.
The question is who are the companies pushing the DAX back? For the upcoming week there are no good candidates. Another reason why we will not see a fast recover. The best candidates are Volkswagen and Linde. Volkswagen's indicators are not looking bad and we might see an increase, but the strength of the trend is still weak.
By Linde we have to see on Monday if last Friday was an exception and the stock will continue to recover. Until last Thursday the majority of indicators showed a good picture.
Both companies are right now at the lower end of their trend channel and it is time to lift off.
In US they start tomorrow to report the earnings. If things will go bad and we hear bad news the game plan will be changed again. But I am confident that will not happen. There is too much money in the market, the banks still have trouble to give credits to small companies and what are they supposed to do with all the money? Just to finance our expensive politicians?
But as always: just my 5 cents......
The question is who are the companies pushing the DAX back? For the upcoming week there are no good candidates. Another reason why we will not see a fast recover. The best candidates are Volkswagen and Linde. Volkswagen's indicators are not looking bad and we might see an increase, but the strength of the trend is still weak.
By Linde we have to see on Monday if last Friday was an exception and the stock will continue to recover. Until last Thursday the majority of indicators showed a good picture.
Both companies are right now at the lower end of their trend channel and it is time to lift off.
In US they start tomorrow to report the earnings. If things will go bad and we hear bad news the game plan will be changed again. But I am confident that will not happen. There is too much money in the market, the banks still have trouble to give credits to small companies and what are they supposed to do with all the money? Just to finance our expensive politicians?
But as always: just my 5 cents......
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