German DAX week of August 10th. Allianz, Infineon, K+S, Lufthansa, Dt.Bank

That was quite an interesting week. As expected the DAX did not do very well and continued his journey to the South. 

The index went through his support line this time and we think it is possible that again he will bounce around in a few days. But we do have to ask what is different in Germany compare to US? US finished the week with a plus:

DOW = 0.37%

NASDAQ = 0.42%

S+P 500 = 0.34%

DAX achieved -2.18% for the week.  This delta cannot be explained with a good Friday in US. We do have a different behavior   of the investors. They are going out of the market and we are confident we speak about international investors and not the German once. The Euro exchange rate will go down to the South due to all the actions again Russia which will hurt the Germans more then the US.

But if the DAX will bounce next week what company could do it?

We run our trade system for over 1000 German stocks. No name came up. Our system does not suggest any new investment. We looked closer to DAX companies to get an idea where an investor could invest when he is prepared to take a bigger risk.

 Allianz is such a candidate. The stock hit a support line  of 121.10 Euros like so often in the past. It might work again this time. But all the indicators of our trade system do not support this.

Infineon is another candidate where a risk investor might start a new investment. It looks like the paper found last week a bottom.  But the indicators tell us wait a few more days.

 Similar possibilities we see by K+S. We suggest to observe the further development for a few more days to get confirmation that something really changed.

We do have in Germany a few companies where we have currently not a correction and the price is going down due to major problems inside of the organization. We do not expect a change within days.

Lufthansa. The reduction since June is certainly not based on trouble in the world. Investors left the company before we got a war in East Ukraine.

We also discussed in the past an investment in Dt. Bank. We did not change our opinion about this company. The recent news out of US, order to change  bookkeeping practice, only underline our statement of the past: hands off is better.

But as always: just my 5 cents......