Last week we did not published anything so let us share today our thoughts for the next week.
As discussed two weeks ago the DAX is riding on the upper line of his trend channel and achieved last week 0.78%. A little bit less than the DOW with 0.94%. The indicators showing the DAX is overbought. It is easy to get a short correction as discussed before. On the other hand we did get last week a sell signal just to get at the next day a buy signal again. Monday will become interesting. Will the DAX continue on the high DOW level of last Friday? Last Friday was a big recovery after the disaster of Thursday. A few indicator tell us we will get a correction but the trend indicator is very strong saying it will continue.
What was interesting last week? K+S developed a traditional triangle, like in the book. The chart was able to brake out to the north and achieved 8.39% last week. Will it continue? The indicators suggest it will but certainly not by another 8%. The strength is still not strong.
But who will increase the performance next week? We have 16 titles in a buy phase and 15 titles in a sell phase. The majority of charts in a buy phase are overbought and confirm the statement we did do earlier: we might see a correction next week. A correction and not a trend change like we can allways read in German Newspapers. These reporters / writers who studied to be a writer and on side a little bit Economy do not get their head around what the FED is doing. Maybe it would be better to hire writers who studied Economy and are able to write. For their defense we have to admit we can see the very same thing in US.
But a few charts will get our attention next week: Dt.Bank, Infineon and Siemens will be on our radar next week.
But as always: just my 5 cents.....
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