We have not posted for a few weeks about our investment in the German market.
For the 3rd time this year the German DAX got a correction during the first half of April just to recover again. The market simply does not know what to do. We do not share the opinion of certain German newspapers that things like the East European games are responsible for the last reduction in April. We would not have had the recovery during the second half of April. But it looks like the DAX creates a triangle and we can expect soon a final decision of the DAX where to go. Is he able to get through this time or is the DAX going down another time?
We published end of March we would go long with Porsche. Buy signal was created on March 28th and Sell signal was developed on April 24th. An increase of 7.19%.
We also said we are bullish on Volkswagen on March 30. We expect s sell signal during the next days and sell based on last Friday's performance. With 1.14% it was certainly not our best investment.
What is new in the German market? We can see the so called "smart money" is moving into Dt. Telekom. That started before the discussion about their US company T-mobile and potential buyer Sprint came back on the table. We think the merge will not happen. A merge with AT&T was not allowed why should a merge with Sprint be allowed? The development on the mobile market during the last months shows the Government was right not to allow the merge. T-mobile is currently the shark on the mobile market and US customers have better opportunities. Nevertheless we are bullish for Dt. Telekom. We are a little bit late but hope the stock will continue to go north.
We are also bullish for Wacker Chemie.
The paper got a correction during the last two months. We think the correction is done and on Friday the DI indicator delivered as the last indicator of our trade system a bullish signal. It is time to go long.
But as always: Just my 5 cents....
No comments:
Post a Comment