This potentially a very rewarding pair trade. You can enter shorts in Dax (either via CFDs or using the EWG etf) and longs in Nasdaq composite (CFDs or via the QQQ etf), risking 1 time the monthly average true range (but using no stop - the idea is merely to size the trade based on volatility). This is potentially a long term trade, and a good way of gaining short exposure based on fundamentals without being solely short Deutsche Bank or Germany.
as soon as DB stuff is solved, DAX will skyrocket.
what is your TP for DAX?
10000?
IvanLabrie
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I'm out of DAX at 10311, holding EWG, as a pair trade with QQQ for now.
MertErten
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good, I'm out from 10280.
I will add shorts after GER open...
(I hope it opens with a gap)
I don't think this DB stuff will be solved easily.
IvanLabrie
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Me neither, I'm willing to play the 'short Dax' theme for a while longer...also as a bit of a hedge against my US equities longs.
MertErten
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I agree,
I have some IBB (Nasdaq BIOTECH) ETF.
NASDAQ should explode with FED rate hike.
IvanLabrie
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What do you mean? I don't think we'll get a rate hike any time soon.
Market looks overall bullish.
I think the DB issue is the main thing in focus now.
MertErten
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Yellen promised a rate hike in 2016 in the last FOMC press speech, I was talking about that.
what is your TP for DAX?
10000?