Tuesday

Markets Rebound

Post a Comment May 26, 2009 – 3:42 pm |   | Permalink |  Print This Post |

Markets played dead over the long weekend, giving everyone (us included) the impression that it was about to turn over. The Dax is currently 4980. 5000 will almost certainly be breached, with 5050 the next target. A break above the previous high would make it likely for further rallies. The “highest” the Dax can go according to our indicators is 5600 (not a misprint). Be patient, refrain from opening more shorts for now. Be suspicious as long as the Dax does not go above 5000 for the day. We will consider opening another short with a +50 point above the close in the Dax (5050), but this will only be an intraday trade. Given markets have pulled back in the last few days, any rally from here could be significant.