German DAX; of September 22, Lanxess, Dt.Post, Allianz, Bayer

That was certainly not a boring week. The Fed did what we expected. She goes ahead with her current plan. At least that is what we expected after reading the minutes of the last meeting.  But the majority  of Analysts in Germany or better "Chefvolkswirte", a terrible German word, wanted to understand something different. They quite often forget the Fed is working for the people of the US, it is the Central Bank of US and not the world.

Looking after the stock of the DAX index we got what we expected. Lanxess closed the current upside cycle and developed on Wednesday, as reported in this blog, a sell signal. As of yesterday the paper lost 6.39% compare with last week.

Dt. Post continued to increase the value during this week by another 6.23%. 5.24% last Friday with a volume of 59 Million stocks. The average is around 4 Million stocks. "Clever Money" is moving into this title. This is certainly not Joe the Plumper. The PVI indicator underlines this by jumping to the North and the strength indicator is now at 54 while he was at a weak position of 22 at the beginning of the month. We might see a small correction during the next days because the RSI indicator shows the paper is overbought. But that will not change the general observation, the paper is "in".

We spoke in the past about Allianz. The paper achieved last week a performance of  3.46% compare  1.95% of the DAX. The paper did have a good development during the past weeks and we think there is more to go. Looking at the indicators we do not expect major changes.

New on the radar is Bayer. The first indicator of our trade system went positive on September 12th. On Thursday the last indicator we use confirmed the buy signal. It looks like other people use the very same parameters and bought on Friday a huge amount of shares: 6.5 Million instead of an average of 1.8 million. Time to go long.

We are pleased to see that our opinion about the traditional Energy Companies in Germany is shared  by other investors. RWE and E.ON are loosing. We could read this week RWE is going to let go another 3,000 employees. We do have our doubts that today's election in Germany will push the share price to the north. As we could read in the Manager Magazin this week: all potential constellations of a new government will not really help these traditional Energy Companies according to a study of Deutsche Bank.

But as always: just my 5cents.....