Short term on the Dax
Stop arguing, just trade
Looking around in macro land, I continually hear the phrase ”V-shaped recovery.” I am not buying it. Yesterday Goldman released a news article with the caption ” stocks don't have to go down ever again ” or something like that. I am paraphrasing, of course. But really? Stocks don't have to go down, like ever?
Even on immoral earnings, collapsing oil prices, lack of demand, lack of consumption, a strong dollar, no vaccine, dovish central banks that have resorted to the most magnificent money printing we have ever seen?
Don't forget, Europe is in the thralls of COVID and an ever-increasing probability of political and social unrest as unemployment leaps higher. Capitalism sure looks different. She just ain't the gal I used to know!
Anyway, it's best not to fight or argue into the ether on why squiggly bearish technical lines don't work or why the market is not pricing in economic armageddon.
In this scenario, don't argue. Just sell at the resistance level. Right now, we have a traders market. So trade like a trader. Sell at 10848 buy back at 10100 ish. Don't argue just trade.
Until next time
Courage