Where do we go from here? The DAX touched for the fourth time the resistance line. Will the index continue to go north or will it go down again? Why do we not have a crystal ball?
Looking at the different DAX companies there is no company where we think we should get invested. There are quite some companies where investors can continue to be invested like Beiersdorf, Henkel or Linde. They are running fine but investors should be aware RSI is around 70 and we can expect every day investors might cash in. If someone has to start an investment in German DAX we recommend Merck. The trend is intact and it looks like it could go for few more days. We think there is a good chance the stock will finally break the side trend.
Other from that we stay in cash and see how the DAX we react on Monday morning to the strange development Friday afternoon in US.
The US market got a strange development last week when all of the sudden on Wednesday at 2.30 pm all stocks went to the South. On Friday, after the launch break, everything was OK again and stock went to the North. We could not read anything in the newspapers about that. They did not catch that.
But as always: Just my 5 cents....
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