Posted in: spread-betting
RE: Trading/Spreadbetting board12 Mar 2015 08:36
GB --Good Morning --- there are only 30 companies making up the Dax30 --they all have different weighting factor as do all the companies in the Ftse100 and Dow30 ----so buying these 30 companies , as you know, alters the rise and fall on a normal basis of the Dax30 Index ---
If you look at all 30 companies in the Dax30 -- to have given the Dax30 this phenominal rise they would all have to be extremely overbought , and i mean , Extremely Overbought ----and they aren't !!--
The rise is in part due to the buying of the 30 Companies but more to do with the buying of the Dax30 Index Futures fuelled by large US (and others) tracker Funds ---buying into the percieved strength in the Eurozone , more especially, the German Economy ---Draghi's speech about pumping billions into the Eurozone fuelled the 300+ rise yesterday !!--
It's hard to see now what will stop the Dax reaching 12000 and well beyond ?---nobody would want to see Ukraine or some such disaster be the cause but unless something happens soon then 12000 is the target everyone is looking for ---
It should , in theory , technically drop towards that 11600 4hourly level as it's well overbought on all indicators ---but who knows ? --
It's dropped below supp1 and supp2 on the 1 minute as i post this and even dropped below 11800 ---so fingers crossed for a meaningful, well overdue pull-back ----.
The Dax rise has been to the detriment of the Dow and Ftse , which Analysts see as dropping further yet ?? --
FP took the "hit" on his Dax shorts ----i may have to do the same if the rise continues and we don't get at least a 100 pt,. or so drop from current levels !! --
GL.
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