I'm Calling The Top In The DAX - Part 2
Two months ago, I called the top in the DAX,
I'm Calling The Top In The DAX
Last week, the final GDP result showed a decline of 0.2% in the third quarter, in line with expectations, but marked the first decline since 2014. Manufacturing PMI fell to 51.6, this marked a fourth straight drop in manufacturing activity.
German industrial output unexpectedly fell in December for the fourth consecutive month, sending another signal that growth in Europe’s biggest economy is weakening. Analysts said the fall makes it more likely that the economy contracted in the fourth quarter, which would translate into a recession after growth domestic product fell in the third quarter.
After nearly a decade of steady growth, the German economy has been facing headwinds from trade frictions between the United States and both China and the European Union. Britain’s possible departure from the EU next month without a deal is also clouding the outlook for German manufacturers.
The dagger is now in because the monthly candle closed below the long term up trend line.
The next major level I'm looking at once the monthly demand at 10300 is breached is the monthly demand at 8000.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.
That would be brutal, but I think the rest of the markets follow, since it would indicate global GDP slowing. The only thing that break this out would be an actual China trade deal.
Do you think the S&P500 has run out of steam here? Again, barring a China trade deal...
I honestly think a china trade deal will be an opportunity to short the Markets at a higher price. I honestly think the tops are in on the S&P 500, meaning we won't make a new high. I will write a post within the next 1-2 days to explaining my thesis...it will be an interesting read, but will mainly consist of charts.
I'm anxiously looking forward to that post, since we are a decision point right now which way the market rolls. Thank you!
Scary considering the importance of some of the financial institutions in that country as they have been weak due to some risky loans across the EU. The counterparty risk seems to be high and could lead to a domino effect!
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Yeah, I think as Germany goes, Europe goes and things aren't looking good at this time.