Finally it was done. The index hit 10,000 points. All the people who were talking about the crash and a stock reduction by 20%, 25% or even 50% were wrong. Let's see if the DAX can keep his high level in future.
Since mid April we can see a slow but permanent increase of the index and the decision of ECB is certainly only responsible for the last days. The journalists who were talking about the Doom days were simply wrong. But we might see a little struggle to be permanent above 10,000 points. But it will continue grow.
Last week we spoke about selling of Merck and Linde. It looks like Linde got a few days later again a buy signal and continued to go North. But indicators like ADX showing a correction down the road soon.
We spoke about BMW and Daimler. Last week confirmed our point of view and we are sure they will continue. New candidate is HeidelbergCement. The stock went well last week and we think it will continue. But how could we miss that last week?
We spoke about Bayer last week and it looks like we were wrong. We do not have a SAR sell signal but the MACD turned, crossed the signal line to the South. DI+ is still far above DI- and ADX is with 50 quite high. Enough people buy currently the stock but the negative MACD indicates we have to be carefully.
Another stock got our attention this week: Dt. Bank. This paper got hit last week and were sold in big numbers. We know the company is not in a good shape but the volume on Thursday and Friday was totally out of normal. According to the indicators the stock is oversold. but will the stock turn around right now? The whole year the stock price went to the South. The question is how far it will go? During the last 5 years the bottom was always around $22.50. Last week the stock crossed the resistance line of $30 and we would not surprised to see again $22.50. We will hold our fire.
But as always: just my 5 cents......
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