Is it to late to buy now?
No - it s not. The Dax-Chart shows a pattern. If you take the 2.000 points from the low in February 2016 to the resist at 10.753/10.800 you can meassure more 2.000 points. If you add this to the resist-line wich the DAX now clearly break now at 10.800 you can calculate that the DAX might rise above the former all time high at 12.400 up to 12.800 points. If you buy now means this might be good for another 1.600 points up-move.
If you like to have an other example for irrational pessimism than watch this chart:
What do you see?
You see a kind of rising wedge what means a clear sign that an upmove is come to an end now. But look what the German DAX has done today - and watch precisely what will happen on monday. After hours the DAX is going up another 40 points more wich might be followed by some 40 more points on monday night and some more points in the pre trading before opening at 09.00 am lokal time Frankfurt wich means there might be a larger measuring gap on monday morning
So if ever you are a technican in stockmarket anaylisis - what will be your conclusion about that?
And now guess, how many retail investors might have seen this and how many of them are discussing this? I also follow closely what german professional stock market analysts are talking about and expecting for the following trading days and weeks: The DAX needs (!) to go down.
They tell, what the market needs to do.
Guess what they think and talk about: The German DAX needs to fall for a thousand reasons. Maybe the are right. But can anyone explain to me why there is silence if you see a chart like this and any stockmarket analyst and retail investor is so proud do predict the German DAX future excactely just using charts and technical analysis?
Can anyone explain why no one talking about this with only a very few words:
Maybe this might be start for a new bull market even i don´t understand the reasons - but the technical analysis speaks for it self?
If ever you see a momentum like this and if ever you see that one resist after the other is passed by with any minute of any kind of break in five days can you ignore that this might not end?
From a thousand ore more Investors there will be 999 expecting the German Stockmarket to go down.
Maybe there are right and i might be wrong. The opposite would me, that 999 are wrong and need to accept a new bull market in only one trading day. And this trading day might be monday or any day in the next week or weeks.
.. and you see that the DAX runs like expected. On the other hand the widely expected stockmarket crash after the Italian Referendum never occurs. The DAX jumped directely above the key resistance line at 10.800 and cross the 11.000 without any problems.
After all do you believe that German Retail Investors getting ethusiastic now?
You are still wrong. The avarage expectations by end of the year 2017 is 10.950. The DAX hat been today at 10.326 points or almost 400 point higher than the average investor expect by next years end (!). After todays FOMC Traders try to short the DAX Future once more. They failed to pass by 11.200. For the upcomming december options exparations day on friday the expectations are clear - and high. The German DAX is expected to have kind of "flash crash" at least back to 11k or probably 10.800.
After all you have learned about this rally in wich almost all investors missed day by day any up move - what you guess might happen thursday and friday with Germany´s DAX?
Nobody knows what will happen in the future. But if ever 80% of all Investors telling the market to go down than is form all what we learned about stockmarket less likely that this might occur.
So come back on Monday and let us discuss again, what has happened until than and maybe what we might had known before.