You really cannot say that was a boring week. The DAX dropped like we expected. There was clearly a sell signal on Tuesday. The index was catch again at a level of 9700 and pushed to the South. There was not enough pressure to push to the North as discussed last week.
Specially on Thursday was the market awful. There were rumors in US in the morning that investors wanted to sell stocks of 200 companies. Window dressing of fond managers for the quarterly report we were told. When the US opened the market and the stock in US was falling like stones you could see the very same development in Germany. While the DAX was performing until 2PM alright, the situation changed immediately after US opened the doors.
This chart shows clearly the connection between the markets. The US did quite a run to the North on Friday when Germany was already closed. We expect the DAX to do something similar on Monday. But as mentioned the DAX in general is in a sell mode.
We discussed last week Allianz would be overpriced and time to close the position. The sensitive, heavy reaction of the stock after the head of Pimco left, shows the stock was waiting for some bad news.
The reaction was so heavy it might be right for investors to invest again.
Muenchener Rueck we said would be a keeper. The stock handled quite well the trouble of last week and we still sure to see higher prices.
Dt. Post is another favorite of us. The trend last week stopped the stock to go back into the trend channel. On Friday the stock actually developed a sell signal. To sell or to keep the stock depends how the stock will perform on Monday.
Other from that we recommend to wait how the next days will develop. As we said in general the DAX is in a sell phase. The charts do not recommend right now a new investment in DAX stocks.
But as always: just my 5 cents......
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