There is a solid percentage of German subscribers to NFTRH and while Europe in general is not (yet) making a big move, Germany’s DAX index is. So I thought I’d make note of it here since we did not go in depth in NFTRH 731.
DAX has taken out the downtrending SMA 200, much like the DJIA in the US. The thought is that the Dow can test its highs on this bear market rally. The same could be said here, as if the DAX were like a German ‘Dow’.
However, a test of the highs will meet a lot of resistance at 14800 to 15200 if it persists. Just a look ahead, fyi.
We see some nice rallies across the globe. Technical rallies, IMO. The money is managed by two type of managers. Managers who had a bad year and they see a chance to save their jobs/bonuses in this last quarter. And then there are the managers who did well year to date, who look to protect themselves against upside, effectively locking in their nice bonuses.
Good points, Bart. Technical and sentiment, IMO.
This rally could soon be over, in which case a short might be in order. On the other hand, the prevailing sentiment coudl easily blast the index through the imminent resistance level, suggesting going long. Also to be considered is an aggressive sideways continuation that would indicate a hold or staying in cash.
So there is plenty of potentially actionable information contained in this chart. Throw your darts!
“Throw your darts”… sounds about right for this market (broad US and global). With another soft inflation report yesterday a valid question is ‘what will be the duration and sentiment power of the Fed-relief play?’
For me, it’s week to week and trying to see around the next short-term corner.
The German DAX contains reinvested dividends (total return) and therefore cannot be compared with other major indices like the DOW. Some have described the DAX as a sort of con-job.
The index comprising stock prices only is called “DAX Kursindex” and is currently well below its all-time high of the year 2000.
That is very interesting, Werner. I did not know that.