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Germanequities

DAX - (massive!) Short; This is a no-brainer!Germany decided to systematically destroy their (and the EU's) economy, in a consistent and spectacular fashion. This is a no-brainer!! (I have been shorting this, with everything I've got, for the past week.) The only thing that kept this thing afloat, so far, is the underlying currency (EUR/USD) push-pull. I believe that is now over and full capitulation is at hand. Where will this mayhem stop? ... Well, it depends on the maximum pain tolerance of the combined German industrial base. Will they let their government fully destroy their entire economy or will they put a stop to it, at some point? ... Right now, I don't care! The damage is already done, the only question remaining; Just how bad? Sell, sell, sell ... and then, Short some more!
XETR:DAXShort
by Nemo_Confidat
60
ridethepig | DAX sufferingAn interesting development on DAX after the planned highs last week. We will go through what does it mean, how is this an advantage to sellers and when is it appropriate to add to the position. The same focus can be applied across the global equity board. Resistance can also be conceived with the presence of stimulus; but total restraint, which reigns from lockdowns stretching into another 3 weeks for Germany will give buyers breathing difficulties...To what extent, should we ask, is this an advantage that we can capitalise on and how unpleasant will that be for buyers? Our very short-term range is +/- 15% ... so although from a timing perspective we are compact, the yield connected with such a wide range is apparent. The main mid-term and long-term range is even clearer: 📍 Rule: when loading on the short-term understand the position our opponent poses in the mid and long term, to further understanding of scope and whether taking the position is worthwhile.. With this in mind, in the long-term macro chart in euro I posted back in 2018... yes 2018... it was about buyers attempting to trap their opponent into a selloff before continuing the legs higher. With a completion of the moves in euro, the formation of the hammer in Germany equities can finally advance with 1.20xx and 1.21xx cleared. But there is no-stopping the digital euro into 2021 and thus the attempt to cancel the currency remains under pressure: As well as active pressure from the currency, there is also the concept of lockdowns and further static economic growth from Germany. We must distinguish from whether this is a short lived -15% selloff or a sustained economic cycle down. Send the troops, time will tell. Thanks as usual for keeping the feedback coming 👍 or 👎
GShort
by ridethepig