dji/dax is inversly corelated with gold and eurusd . Also eurusd is diretly corelated with gold . Gold is up and so eurusd is up . Therefore dji/dax must go down as long as gold and eurusd goes up . Please see my previous and my first published idea too .The long way down .
Trade closed: target reached
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Reentered short at a better price 12455 this morning , then tp1 12320 reached . But again us30 do not follow - almost flat . So I'll wait for US open , but I feel that doing so I can miss the start of downfall for us30 the twin brother of dax . So I'm looking to short both .
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:( , yep missed ! I thought that this low will hold . But as I said yesterday quote : " That low of 12320 will be retested soon . Maybe today . Already tested on June 30 , and July 06 . And who knows ? Maybe the third time is lucky " . And so it was - third time lucky , and I was not in :( .
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but that stupid US30/dji/dow has confused me . Again as in last 2 months the difference between dax and dji variation has gone from 250pips to 500 , today at over 700 and now 820pips . That is because mostly dax has gone down and dji up .
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oil is down today a lot too but us30 not enough down . For similar fall as dax from the peak of 12950 to 12200 that is 750pips , us30 must fall 800x1.76=1320pips and that will drag dax a little bit more down . So I expect a fall in us30/dji of more than 1500pips down to dji at 20000 . (1.76 = 21500@dji / 12200@dax)
why are dax30/cac40 falling while us is rising ?
Friday fall may be as gaining speed or momentum but what is the reason in the first place ?
DoubleMan
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The difference between dax and dji variation has gone from zero 1-2 months ago up to 870pips Friday , mainly on dax fall .
Looks like us30 is in France with Macron and dax is in US with Trump .
See the huge win of Macron's Republiqe en marche versus US politic gridlock .
So in my opinion the things must go the other way around : US down more than Europe .
DoubleMan
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Again as in last 2 months the difference between dax and dji variation has gone from 250pips to 500 and now 720pips . That is because dax has gone down and dji up .
DoubleMan
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@DoubleMan, But such correlations sometimes are broken at least for a while or until a new ratio is accomplished . As seen below :
But for the moment I see going down rather dji than dax because the gridlock in us politics and the huge hatred against president Trump .