Yesterday’s session started off with three losing trades for me (-1% for each trade), split over the DAX and FTSE. These trades were longs and did not work. However, when I started to trade the other side, then we see three signals from yesterday earn +10% to the trading account. That’s what a call a good recovery! Congrats to you guys following me. Find out more about subscribing to signals.

Massive Sell Off

Yesterday’s rollercoaster could be the start of the seasonal slump. We saw prices rise as high as we’ve seen since the corona virus issues began, followed by an almost immediate loss of those earlier gains. The massive sale of technology shares on the US stock exchanges destroyed the bullish development and weighed on the European indices, including the DAX. Next week’s interest rate meetings will be of interest to fundamental analysts, but I think the ECB will probably leave the rates unchanged. The Fed will probably start allowing inflation to rise to 2.5%… a recipe for disaster in my opinion because as soon as you allow the velocity of money to increase, you won’t control inflation, you can’t control inflation, without luck or a second wave of the pandemic lockdown nonsense. Either way, we should probably plan for a longer correction phase on the markets.

During the last session, we saw the DAX 30 reach a session high of 13463 and a session low of 12933 giving us a range of 530 points compared to the average daily range of 265. At the close of play last session, the market closed at 12996 which was 775 points above the 200EMA and 259 points above the 50EMA.

DAX Index Key Levels

Looking at the key levels to watch today, watch out for the previous session Point of Control (POC) at 13422 and the previous session Volume Weighted Average Price (VWAP) at 13254. The value area high (VAH) is currently 13463 and the value area low (VAL) is currently 13178.

DAX Technical Indicators

IndicatorValue
RSI54
StochasticK: 43 and D: 62
MACD OSMA-1
Point of Control (POC)13422
Value Area High (VAH)13463
Value Area Low (VAL)13178
The DAX Pivot13130
The DAX R213661
The DAX S212600
Daily 5 EMA13081
Daily 8 EMA13067
Daily 50 EMA12737
Daily 200 EMA12221

DAX Signals

As for my index trading; during the last trading session I took a total of 7 trades, so it was an interesting session with plenty of trading opportunities (4 DAX trades and 3 FTSE trades). Breaking down my DAX trades, 2 were from the DAX trading strategy (DTI) and 2 were from the regular morning DAX signal. Breaking down my FTSE trades, 1 was from the FTSE trading strategy (Using the DAX DTI) and 2 were from the regular morning FTSE signal. Overall, I hit 3 winners, 4 losers, and 0 break-even trades. This gave me a total profit of +6% for the day.

DAX DTIDAX DAILYFTSE DTIFTSE DAILY
Trades2212
Win1101
Loss1111
B/e0000
Closed Early0000
Profit+3%+2%-1%+2%

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