Again, what a week. We did not see that coming.
We expected a small correction over days because the DAX was running at the upper line of the channel. But we certainly did not expect such a strong decrease. Indicators of a bad Friday we could see in US on Thursday after the market closed. We could see quite some big decreasing by certain stocks like Tesla. We are long in Tesla.
It will be interesting to see the further DAX development on Monday. On Wednesday FED will go public how they indent to continue. The economy in US is still bad. The malls are still empty if you compare that with time prior to Doom Day in 2008. Even if they taper by another 10 B the buy back, there is still a lot of money in the market specially if investors will continue to bring money back from abroad. We are sure the DAX will continue to decline until Wednesday and will recover after the FED will go public. Otherwise the index will go through the lower line of the channel, around 9300, and then we will have the correction. But the economy is not so bad. As we could read today the growth rate in Germany is bigger then the German Government anticipate.
How is our investment looking?
ThyssenKrupp developed a classical Sell signal on Friday. We achieved 6.58% increase since December 28th compare with DAX -2.06.
We published on December 28th a goal of 19Euro which we got a week ago on January 17th. A 9.9% increase compare with DAX by 6%. It was a bad week.
HeidelbergCement was our favorite on January 12th. We set a target of 59 Euro which we saw on Thursday with 59.44 Euros. After last Friday we lost our profit and the stock showed a clear Sell signal.
Nevertheless both stocks are still in the positive channel and as discussed at the beginning we hope the second half of the week will be better.
But as always: just my 5 cents....
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