Pls see DAX chart below
Look at chart below for IFO Pan Germany Business Expectations Survey Index
They were all very bullish in 2007 as seen in chart above ( index near 104 )
They were thinking that the DAX would keep on going up
Then came 2008 and the DAX collapsed
They became very bearish by Dec 2008
Index was at 80 or so
They all thought that the DAX would keep on falling
DAX bottomed in early 2009 and rose back up
Now the index is again at 106 - even above the 2007 value
They are very bullish on the DAX - and think that the DAX will keep on going up
I think they will be in for a very big surprise when the DAX collapses !!!!!
An extreme in bullish sentiment on DAX - tells me to be on the other side of the trade
Extreme caution is advised on DAX this year
in my view there is a very high probability that the DAX may peak and then crash like it did in 2008
Time will tell and I will post an update again if that were to happen to remind you about this CONTRARIAN way of looking at things
Look at chart below for IFO Pan Germany Business Expectations Survey Index
They were all very bullish in 2007 as seen in chart above ( index near 104 )
They were thinking that the DAX would keep on going up
Then came 2008 and the DAX collapsed
They became very bearish by Dec 2008
Index was at 80 or so
They all thought that the DAX would keep on falling
DAX bottomed in early 2009 and rose back up
Now the index is again at 106 - even above the 2007 value
They are very bullish on the DAX - and think that the DAX will keep on going up
I think they will be in for a very big surprise when the DAX collapses !!!!!
An extreme in bullish sentiment on DAX - tells me to be on the other side of the trade
Extreme caution is advised on DAX this year
in my view there is a very high probability that the DAX may peak and then crash like it did in 2008
Time will tell and I will post an update again if that were to happen to remind you about this CONTRARIAN way of looking at things
No comments:
Post a Comment