YaKa

DAX - How can we fit a strong rally

FX:GER30   DAX Index
189 0 4
Fundamentally, despite the deflationary atmosphere, there are good reasons to fit a strong rally:
1) German DAX             has a big portion of its sales in USD and is Industrial skewed and EURUSD             Fell 20%.
2) Valuation are currently at 10 for the DAX             versus 17 in the US.
3) After QE announcement, rates are close to zero on a 10y basis (much lower than the US equivalent).
4) DAX             has been flat for a year in 2014.

The first move up was swift and fed by all the reasons above and also the fact that there were many shorts in place.

Now, HOW TO FIT A STRONG RALLY:

A strong rally has to be slow to avoid hiting into speed resistance too soon and trigger large corrections.
if the dax             is to remain strtong for a long while after marking a top in the next week, it will have to relax and start to move at a slower pace probably in the "green band".
EN English
EN English (UK)
EN English (IN)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
SV Svenska
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
ZH 繁體中文
AR العربية
Home Stock Screener Forex Signal Finder Cryptocurrency Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing My Support Tickets Contact Support Ideas Published Followers Following Private Messages Chat Sign Out