$DAX at critical juncture

The stock markets have shown great strength in recent weeks. Still the $DAX has not managed to make any meaningful progress beyond pre-Brexit levels. This is apparent in the weekly chart:



The trendlines actually show an acceleration to the downside were the German index to head south from here. Zooming in on the daily chart magnifies the double resistance that we are trading at currently:


Thus I am very cautious with longs in any of the stock markets at this point.

Funny coincidence was a conversation of two work colleagues I overheard recently in which the tenor was one of optimism for the economy because with $DAX over 10.000 points not everything can be bad and ugly.


*All ideas presented here are my personal opinions and not investment advice.

Comments

Post a Comment

Popular posts from this blog

How to trade

“I have not failed. I have just found 10,000 ways that won’t work.” – Thomas Edison I don't know about you fellow traders out there, but that is certainly how I feel about my beginnings in the financial markets. It all sounds so simple. You open almost any book about trading and read about how putting an indicatior on your chart can give you entries and exits and will make you rich. Excited about the insight you pull up your chart software and start seeing the described entries all over the place. No way to lose money with this knowledge, right? Well, it's not that easy. And how could it be? Do you really think something like "the 20 period moving average acts as support" is the essence of investing? Huh?? I mean, come on folks! It might work a few times, it might even work in the long run for some people. But the truth is: what these technical, indicator-driven strategies try to do is to exploit a statistical abnormality . Following these rules religiously is very t
Read more

$GBPUSD chart analysis

Image
Look at the break of the massive shelf around 1.5250/1.5375 in GBPUSD. I expect this to be a meaningful change of sentiment for the currency pair. What the heck are the British doing to their money??? Next support zones as marked by the blue lines below current price: S1: ~1.5000/1.5125 S2: ~1.4850/1.4875 Of course I got long within the brokes support around 1.5375 and now I'm in trouble with this one. So I will have to figure out how to reduce the damage.
Read more

Singapore is doing it right

I wish Germany and others would understand. But they are busy trying to get the biggest piece of their pie. http://www.sovereignman.com/trends/one-place-thats-really-doing-it-right-11835/ Thanks Mr. Black, interesting article. Economic permanent residence in Singapore is somewhere around 2.5 million dollars. http://ntlimmigration.com/singapore-immigration Another day maybe :)
Read more