Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

DAX Boxed In By Draghi

Published 07/21/2017, 02:23 PM
Updated 07/09/2023, 06:31 AM

The before-and-after DAX 30 charts from Monday and today highlight the straightforward nature of technical formations in translating into anticipated outcomes. You may recall we posted this as our Monday mystery chart and issued it as a short for our Premium subscribers to enter at 12550 and exit Friday at 12205. Other index trades remain open into the weekend alongside 2 FX and 2 metals trades.

Monday's (7/17/17) Vs. Friday's (7/21/17) Dax

DAX 30 is set to complete its 2nd monthly decline after an uninterrupted 6-month rally, which was the longest since the June 2012-January 2013 advance, following the Italy/Spain debt resolution of summer 2012. The ECB's inevitable start of effective tapering — not the meaningless tapering seen in March when duration was extended and size curtailed — is boosting the euro and dragging on German and European equities.

The argument that any ECB tapering will be accompanied by reinvested proceeds from assets owned, which would not hurt stocks, does make sense. But it may not weigh on the euro as hard US data hardly makes a case for H2 Fed hike. And with the GermanU.S. 10-year spread breaking above its 6-year trend-line resistance, the euro reward tends to be more material than indices damage.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.