Dax

[DIP]

Hi

New to this forum today and was wondering if anyone here had any thoughts on the Dax ?

For what it's worth I feel that this index has become very overstreched and is a great sell up here for a medium term punt .

 

[dax]

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.

Each to his own.

 

[jpwone]

Hi Dip and welcome to T2W

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.

 

[rglenn]

I am short the dax myself at present.

I always saw the Dax as a weak index on the upward move but very strong on the downside.

In the last few days however its been powering upwards.

Currently it seems that there is a waiting going on to see what happens in the US before any more serious movements either way.

 

[ColinRiche]

I disagree the Dax is strong on the upside and downside

It has more volatile stocks in the index so out-performs in a rising market and underperforms in a declining market.

 

[rglenn]

That's good Colin that you disagree.

If people didn't disagree there wouldn't be anyone to take the opposite side to many trades.

 

[DIP]

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.

 

[DIP]

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