What a week. Last Monday the DAX corrected the losses of the week before and finished the week with an increase of 2.13% for the entire week. Enough for a writer of the famous German Newspaper Handelsblatt to declare the chart technique is nothing else then reading chicken bones. It looks like he was reading charts about the world will end soon. Would be good to know what kind of papers he is reading.
For some time we are looking after Dt.Post, plus 3.91% and Lanxess, 3.68% increase last week. Both papers beat again the DAX.
Dt. Post, the strength indicator of the trend changed his direction last week and is increasing again, leaving the weak zone. All other indicators suggest the value of the stock will continue to climb.
Lanxess, we always said the strength of the trend would be weak but last week the paper developed a strong strength indicator. The traded volume was nothing out of the ordinary; the paper developed the performance under the radar and did not catch the attention of retail business. The "smart money" is moving into this title and it looks like we cannot see any of these Shorties. We expect the paper to continue to increase.
New on our list is Allianz. The paper developed on Thursday a buy signal after a correction of 5.7% started on August 6th. The buy signal is not conformed yet from the other indicators.
On an additional note the DAX shows a massive change. Lufthansa was sold during the week in big numbers. The paper is on the down trend since June 7th, crossed August 14th the 200 days line to the South and it looks like finally the investors do have enough of this under performer. Up to three times of the normal daily average was sold in one day. SAP and Fresenius were slaughtered as well.
On the other hand we can see a big trade increase by E.ON, RWE, Siemens and BMW. On Friday the trade volume of RWE and E.ON was three times of the normal volume. We do have our doubt that it is due to one report of a Government body promising higher profit. We still cannot see a concept how the traditional Energy Companies would like to handle the future with wind and sun energy. These new business is done by finance companies like Allianz. But we are sure we will learn more next week.
But as always: just my 5 cents.....
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