Potential signal
I am buying here. I have a stop just below 25,000 – which was a trade I took yesterday.
I am aiming for the recent highs.
The DAX German index fell during the trading session to peek below the 25,000-euro level for a short amount of time, only to turn around and show signs of life again.
A lot of what we are looking at right now is a market that I think continues to see a lot of buyers on dips, and I do think that the DAX is going to be a market where people pay close attention to the idea of whether or not Germany will have enough energy this year.
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But ultimately, this is a market that if we do go to the upside, I think we have to deal with the 25,500 level. If we can break above the 25,500 level, then the market could break free.
If we were to break down below the bottom of the range during the trading session on Thursday, it could drop towards the 24,500 level.
Market Outlook and Government Spending
Ultimately, this is a market that I think continues to see a lot of choppiness, but ultimately, this is a market that I think will continue to be very hesitant when selling off, mainly due to the massive amount of upward pressure that we have seen recently.
In fact, I think a lot what we're looking at right now is a situation where we are trying to sort out whether or not we can work off some of the excess froth from the move to the upside. Ultimately, I do believe that the DAX eventually goes to the upside.
Ultimately, this is a market that I think will also focus on the fact that the German government is looking to flood the economy with spending later this year, and that of course has a lot of people looking forward and thinking that a lot of German industrials will do quite well. I remain bullish.
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