DAX recent strength

[MichaelPurcell]

Hi All,

What are your thoughts on the DAX continuing to outperform all the other Euro zone indices?

 

[Dentalfloss]

thinking that the ftse 100 will outperform due its commodity constituents..uneless support comes in for the dollar..imho

 

[MichaelPurcell]

DAX outperformed the FTSE100 by 2% this past week!

With USD falling won't this aid commodity prices and therefore the FTSE100 (after shaking off the Royal Wedding) should accelerate?

 

[Dentalfloss]

u gotta a brick wall to thru first
daily data.50 point box size

 

[Dentalfloss]

dollar...the major move happened after the bernanke conference call last wednesday.so no big moves expected..nfp on friday...not too important..interest rate differentials/expectations the sole driver..imho.expect a semi rangebound week ahead imho

 

[MichaelPurcell]

The DAX30 this week was finally outperformed by the FTSE100.

Is this something we expect to continue this upcoming week?

 

[Dentalfloss]

well...according to daily fx.the indices have stood up markedly well.since the run on the euro.so risk is on uneless the s500 breaks down.that seems to be a pretty good scenario for nex week.
enclosed chart of s500showing that 1320 area is the main supp for the latest uptrend
so main criteria.....risk on or risk off
then it boils down to th constituents of the index.
dont forget dax is like the dow ..only 30 stocks
ftse is a 100 stocks.also a fair number of commods

just an opinion....yours might be different

 

[MichaelPurcell]

Dax30 this week finally came off the boil. Probably the worst performing Index out of the Euros and Americas after quite the sell off.

Was this only due to the IMF debacle that happened in NY? Or is their something more in it?

If the DAX30 can stay out of the low 7200s then it could be back to the great wall of 7600...

 

[Dentalfloss]

ok...so,risk was on when s&p 500 bounced.we had 1320 marked.it bounced at 1318.50.so a great trade was put on,wednesday
differences.ftse has a massive support area at 5850 which held.dax has a gap at 7250 which acted as support.so the bounce is just due to the constituents of the index.some will underperform the index etc etc.hence we use relative strength charts for these.could be the euro effect also.but the eur did bounce against most majors
just an opinion

 

[MichaelPurcell]

Dax30 weakness continued this week.

It really struggled around the 7200 level. Everytime it got over this level is would collapse back to the 7100s. If the DAX30 can hit up over 7200 and close there then this cold signal some ongoing strength.

 

[Dentalfloss]

well.the gap acted as major resistance.you can see it quite clearly in this chart.so a bit of risk aversion for the dax

 

[Dentalfloss]

overnight the s&p 500 has gone to 1340 resisitance.the dax should be able to take out that gap.any weakness here must be euro related.ie bailouts by germany ...imho
lets see what happens

 

[MichaelPurcell]

Excellant call dentist007.... took out that gap today.

DAX30 above 7300 now. Very Good Long set up!

 

[Dentalfloss]

the s500 resistance might cap all indices

 

[Dentalfloss]

1340 area not completely taken out on s500.eurusd needs to pullback a bit more,the last big move was a false breakout.cable has a definite false break.so possible dollar strength/index down

 

[Dentalfloss]

1320
support area tested

 

[mattboffey]

Hi guys

I am presently spread betting the dax and was wondering if you know of any websites that give daily analysis of the dax

Many thanks

Matt

 

[Dentalfloss]

hi matt
daily analysis for dax..why dont you post a few charts with youre thoughts and watch them play out.that is the only way you will learn.dont be afraid of criticism either
wallstreet1928 does trade the dax,and am sure there are others around

 

[Dentalfloss]

dax..recent strength
chartcraft have posted that market breadth is breaking down on the s&p 500.they are looking for 1250 in the near future a 4% drop.all indices behave differently.the only method of comparison if they drop is a ratio/relative strength chart.bear in mind,that the dax did lag the last minor upmove

 

[MichaelPurcell]

Nice call Dentist007.

The s&p500 once it broke that 1300 level fell straight down to 1260 level.
Massive support coming in and holding up well against this 1260 level but now unable to break above the 1300 level.

If it falls below the 1260 level this week how far down could it go? Cause for concern as you'd assume this will pull the DAX30 below the critical 7000 level of support. Then do markets go in free fall given the not very encouraging economic news out at the moment?