Depends how much you want to risk. The dax can move sharply in either direction -- see this morning as an example. Picking tops is a tough call, but if you're a longer term player and have deep pockets, go for it.
I prefer to let the market tip its hand first and take a piece of the action rather than trying to be too clever and getting wiped out.
I've been short on the Dax since 3300 and am still convinced that it should be going down. My average now is 3454 so the last two days of 80 point gains per day have been expensive.
To quote someone else:
"The market can stay irrational a lot longer than you can stay solvent"
Thats how I'm starting to feel with this trade. I was comfortably in the money at one point and then nearly closed it flat and am now sitting on a 200 point loss. I am still holding it because I still think these markets are building in a lot of good news and have front ended the upwards move.
Bottom line is I still think there is a downwards correction coming but the strength of this up move has been surprising.
Appreciate the replies . Anyway I,ve taken the plunge. Admittedly this looks one of the most bid indices around but then things always do look most bid at the top,so we shall see.
I am happy enough with this trade from a fundamental perspective but as I am away from my screens etc. till Monday I am on less solid ground technically. However at the very least the RSI looks streched . I will investigate further on Monday and post again if I have anything interesting to say.
For info short Dec Dax at 3680. You heard it hear first ! Looking for a decent move down. Will post on Monday with proper levels but a 150 point profit doesn't seem unreasonable.
Well , happy happy days. I posted my entry level live (Dec Dax 3680)and I said I was looking for 150 points . Put my order in at
3530. Tough night last night and logged on late to find my order was filled in Dec Dax at 3530. Very nice. I guess there are a few other happy campers this morning who replied to my post mentioning that they were also short. Still believe this index is a sell on rallies but will try and do nothing else today..maybe even this week
But it's thanks to our sponsors that access to Trade2Win remains free for all. By viewing our ads you help us pay our bills, so please support the site and disable your AdBlocker.