Thursday

Short Dax

Post a Comment April 30, 2009 – 7:29 am |   | Permalink |  Print This Post |

We just fired another short Dax at $5/point at 4795. The momentum from last nights breakout continue to push markets up as Dax hits a high of 4802 (round number theory fulfilled once again). It is possible for the Dax to attempt to break the next round number at 4850-4900, but is currently up 1.6% (which is nothing for the Germans). The fact that it fired straight up so quickly after the start of trading plus the fact that our indicators suggest a down night gives us confidence to short the market. Please do so lightly and have the ability to take the pain up to 5000. Our portfolio have been fairly light and close to net neutral until now. As our shorts stack up, we are once again being stressed tested with unrealised losses. The longer the markets hover at these levels, the more likely for it to have another surge up. The Dax’s high last night was about 4734. See the resemblance between this peak and May 2008? We will update our thoughts later if things change.

Dax chart