The German DAX did have some difficulties during the last week. He did not really know what to do. Mainly to the side was the motto of the week. On Thursday he went into his knees while others like DOW kept continue to grow. Even last Friday it still looked bad, deep into the red until the US opened at 2pm German time and things got better. It looks like the German money market really does not know what to do. Overall DAX achieved only 0.36% for the week while DOW got 1.36%, S&P 500 1.26% and NASDAQ Composite 1.05%. What is wrong in Germany?
Nothing. We do have some really weak companies in Germany who published their figures for 2013 and investors did not like what they were told. A few companies dropped heavily last week and brought the index to the ground. Like discussed in this blog the water boiling companies RWE, -5,26% last week, or E.ON, -3.86% last week, do not have a business model for the future. Volkswagen lost 5.97% last week after they announced they will go after the remaining stock of Scania. We are not sure how the stock will proceed but we are confident if the current development will continue the stock is a buy. As we said before in this blog we are bullish for this company.
How did our other investments go? SAP achieved last week 0.74% but developed last Thursday a sell signal. It looks like the the strength of the trend is getting weak. But the ADX is still above 30. We have to wait a few days to see if the current uptrend really stopped.
We mentioned Merck last week as a buy and the company got 2.88%. Not bad for the current performance of the German market. We expect the stock to continue.
We spoke also about Dt. Boerse. -0.24% for the week was certainly not what we expected. The chart goes to the side and we are not sure how it will continue. There is simply no drive, no phantasy in the chart and it might be the best solution to get out of the stock.
but as always: just my 5 cents......
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