- The DAX in Germany has pulled back just a bit during the trading session on Wednesday, but we have seen a bit of a recovery, enough to make it look like we are going to see more of the same over the longer term.
- All things being equal, I do believe that this is a market that will continue to look at the 23,000 euros level as potential support, right along with the 22,500 euro level.
- I don't have any interest in trying to get too cute here.
- I just look at dips as buying opportunities and we put small positions on gradually building as we go along.
This is not a market that you have to chase, nor is it a market that I think you will have a lot of downside with, but really at this point, it looks like Germany is one of the big movers for traders and ultimately, I do think that this is going to end up being a market that will lead the way for the rest of Europe as per usual. Focusing on the 23,500 level is what I believe the market is in fact doing. Given enough time, I would anticipate that eventually we break above that level and try to get to the 25,000 euro level over the longer term.
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On a Break Lower – If it Happens
If we were to break down below the 22,000 euro level, then I might have to rethink some of my thoughts on the DAX. But really at this point in time, I just don't see anything that suggests that we should be overly concerned about the market. And therefore, I like the idea of looking for cheaper contracts, taking advantage of each and every dip that comes along and building a position as Germany exits recession.
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