It was again a quite exciting week at the German stock market. We never expected that. After all the corrections in the end the SMA 50 line supported the DAX on Monday and he turned back to the North. With an amazing speed, specially after the FED decision, the index climbed back on Friday into his trend channel. All the people who where concerned about the tapering and in the end it pushed the market. While we were confident the general direction will not change, we did see the possibility for a further short time correction within the channel. It looks like we were wrong.
Last week we wrote there would be not a title in the DAX where we expected a change. We were wrong. 9 companies developed a MACD going into a buy phase. Companies we have on the radar for a long time like Infineon or Dt. Post. Looking after the ADX the trend strength of Dt.Post is still weak but that is due to the correction. Based on 5 days, last week the indicator shows a healthy 76.
The new week has only 2 trading days. The market is closed due to the bank holidays Tuesday to Thursday. The traders are on vacation and we do not expect big volume on Monday and Friday.
But we would like to discuss a company we mentioned two weeks ago: ThyssenKrupp. We said it would be still risky but worth to follow the title. While the final buying decision of our trade system is still missing, more and more indicators of our system switching to a buy phase. PVI is crossing the signal line, RSI crossed the line and continues to grow and MACD is just about to cross the signal line. But a few are still missing. Buying would be still to soon but we think it is worth to keep an eye or two.
Overall, we expect a quite week in Germany due to Christmas.
Happy Holiday
but as always: just my 5 cents......
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