That was a long bull run. Totally unexpected. Totally fostered by the continuos huge amount of liquidity central banks have poured in trying to keep the ball rolling. P/E on WS are again unsustainable at current prices.

Central banks are inundating markets with fresh and abundant money. This is obviously distorting the market but here we go.|

Everything is changed and Dax and several others indices entered in a bear market and for good.
We are experiencing very high levels of volatilility with the Dax topping 1000+ pips a day.
Things will calm down but this wouldn’t mean a rapid recovery. At all.

As most traders know, markets doesn’t move in straight lines but in waves. For any timeframe you pick the moves of the market are based on this continuos rises and falls. Moves are quite random, but can be “structured” to see the trend (HH and HL for an uptrend for example and viceversa).

A quick update on DAX

Another week is gone and price is now in a very interesting spot if we put it into perspective. Forget about macroeconomic, fundamentals , politics and the alike. Let’s have a look at the charts from a distance.

This week ended with Wall Street printing a series of all times high on all three major indices. Cool right?

If an alien just arrived in the USA he would think that the economy there is roaring at full speed. Probably expecting rather normal interest rates at around 5%, a wealth distributed on a large part of the population and so on.
Wait as this is not the case. The FED signaled a very probable rate cut from current (low) 2.5% on the next meeting at the end of July as the american economy showed signs of tiredness with several macros indicators deteriorating fast.

Charts speak better and louder then 1000 words. All the main american indices including NASDAQ are now below the 200 days moving average. Dax had cut intraday the 11700 level and will probably test tomorrow the final resistance at 11620.  Difficult to say what will...

Great month May for me. I am an old school trader and sell in May worked as a charm... I will make a long story short. Bulls will be crushed and it just started. Lets start with S&P and Dow. Finally the indices in Wall Street are under the 50 days moving average...

I think is just about time to explain why TA (technical analysis) works regardless of the naysayers and fundamental analyst that try to evaluate the “intrinsic” value of a security. Take as example my latest post on DAX analysis (14 October 2018) where succesfully have “predicted” the fall of the index having as target 10300 that will probably reached in the next few days