He did it again. The DAX increased by another 0.55%. For weeks he is running in an overbought area but he is able to keep increasing. What a performance.
While it is impressive how the index is able to continue to growth, it is important to see the structure. The biggest achiever last week were the classic water boiling companies like RWE and E.ON. The question is on what ground make investors a decision to buy into these companies? Do they put their money on the fact a new government in Germany might give them some goodies and they can continue to use their old technology? There is a possibility the members of the SPD will not agree to be part of the new Government and the Conservative Party has to make a deal with the Green Party. They will force the Conservative Party to continue to increase the wind and sun energy in Germany and the profit situation of RWE and E.ON will continue to be bad.
Last weekend we said Lufthansa went into a buy zone and the title certainly delivered this week with an increase of 3.92 %. Indicator, RSI, showing the company is meanwhile overbought but the trend is strong with ADX of 32 as of last Friday. It might continue for some more days.
Infineon was able to cross the upper line of the triangle this week. We will see if the company can continue or the chart will fall back. The trend is very weak with an ADX of 12. But ADX based on the last 5 days is actually very strong with 80.
Dt. Bank was able to recover this week. As discussed last week the chart went through the lower line of the triangle to the South and turned back last Friday. We need a few more days to see if the chart really turned back. All indicators are still not back in a buying mood. SAR is still on sell. But we expect a buy signal in a few days if the title will continue.
But as always: just my 5 cents
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