DAX will target all time high – 3/1

DAX is at 4 year highs. Only resistance left is the all-time high from 2007 at 8.150 and chances are great it will test it soon.

The German Index has been the leader among major European indices during the upmove that started last summer.

We are at the third wave of the huge move (more than 100% up) that started in March 2009, during the financial crisis.

Beware of late-comers opening new long positions and trend following winners getting into a carefree state of mind. Keep in mind that this bull market has been built on low volumes and mainly central bank money printing.

At the same time avoid short positions at all costs, even if the market seems a bit overbought right now. There are still a lot of people (especially retail traders) doubting this market’s fundamentals, but the fact is that DAX is making successive higher highs.

We still are on the bullish wagon and trail our stops higher.

Petros