DAX – 25/1

DAX is at 5-year highs and eyes the all-time high at 8.151 dating back to 2007. The market is overbought on the daily and weekly charts. Investors look fearless in a world where money printing by central banks is their only solution to economic problems.

At the same time, individual stock volumes are very low, meaning there is not a big convinction and participation behind the upmove. Many institutional analysts doubt this market, which in my opinion speaks for higher prices. Retailers are not part of the game either, so there is nobody that institutions can “load” their own stocks to, which in turn speaks for a continuation of the upmove and its manipulation tactics.

We still are on the bullish wagon and trail our stops higher. For short term traders support can be found at 7707, 7684 and 7660. Resistance at 7762, 7776 and 7800. Only a close below 7.600 (2012 close and 2011 high) will put the trend in danger.