Finally, finally we got the correction we heart about for so long. Since middle of October the DAX was in an overbought area with a RSI of over 70. This week he went too high, achieved 80 on Monday and was falling like a rock. -2.48% for the whole week. The DOW got -0.41% and is still north of the upper trend line. After all he was never overbought like the DAX. The DAX however was falling out of the trend channel to the South and will go back. Last Friday was already up by 0.96%.
How did our investments do?
Lufthansa developed on Monday the sell signal and went to the South by -3.91%. Even on Friday they achieved -0.20%. The title did not make a pause as discussed last weekend and simply made a correction.Will the correction continue? It is difficulty to say. All indicators showing to the South. Only one indicates a change.
Another chart we discussed was Infineon. We said we expect a further increase after the strength indicator for 5 days was at 100. The week was difficulty but the stock was able to increase by 0.38% for the week and 1.76% last Friday. We are still in favor for the chart. All indicators looking good. Even ADX is in standard meanwhile by 37.
Dt. Bank was the third company we discussed last weekend. While the week started very well on Wednesday we saw a sell signal. -4.14% for the week but last Friday was already an increase by 0.82%. The graph crossed the support line by 33.88 Euros and was again out of his trend channel. While we think the stock followed the general trend of the week and will get better, it was certainly not very helpful that one of the CEOs did have a big mouth and argued with the German treasurer.
What is new?
ThyssenKrupp got in trouble last week. -9.32% due to the bad business and the issue of new stocks. This company is something special. In times were a lot of companies try to set up factories in USA due to the expected low energy cost in US, they sell their US steel factory. Maybe they think with a better economy in US the Dollar will go up and they sell again easily from Germany. Nevertheless the chart is right now at a very low price level. RSI went under 30 and increased already during the last two sessions. We do not have any buy signal yet but the paper is on radar.
Today we do not have any particular buy to discuss. There is no clear candidate. It all depend if the DAX will continue to climb back into the channel and then we might see some buy signals. But if you have some money to spend and like some risk go for ThyssenKrupp.
But as always: just my 5 cents.
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