Dax indicators 27.4.2012

In addition to pure technical view, all of the indicators point to higher high.

20 day highs vs. lows pointing up.

Intermediate Dax cycles pointing up.

Dax volume index already made a fulfilled forecast to a climb above 6800. 

I have seen arguments that the average volume has been low, but I cannot see any point in that since the volume seems to be decent.

Dax risk indicator has became quite high. Previously when this indicator has climbed above 70, there hasn't been much room for the upside. It is still expected that Dax could touch 7000 before consolidating. 

3 month's biggest gainer is Man (+20,3%) while the biggest loser is Metro (-20%). At the same time Dax is up +4%.

Currently the correlation between the stocks and index is lowering, which is a good for stock picking and diversifying. Nowadays diversifying doesn't help in a downtrends, but fortunately uptrends still offer great opportunities.

If you read between the lines, the current short term trend seems to be up (for a while...).

Dax update 26.4.

The variation between stocks has diverged lately, thus giving good stock picking opportunities.

Correlation between index and stocks has been quite high and recently lowering a little bit. I hope it will lower more. If the correlation is very high, it is somehow alerting, because usually correlation rises near or during downtrends.

Risk indicator is already quite high, so there could be 1-3 days consolidation ahead.

Oversold condition easened, but we need to watch this careful.

Trading performance has been quite pleasant lately even the increased positions has caused more volatility.

Dax indicators and trades 20.4.2012

Quite variation between 3 month returns from -10% to almost +30%.

20 day highs vs. lows ratio is still pointing down, but there is not much to go anymore. 

Intermediate cycle is showing normal cyclical behavior and could bottom soon. 

McClellan Summation Index has still room for the downside. 

...Although some indicators like modified RSI has been improving and showing signs for a short term market bottom. 

Risk aversion has also improved. 

Current positions include: LONG: DAX, CBK, DBK, HEI, DAI, BBZ, EVT, SNG (open new long positions on Monday for DPW, VOW3), SHORT: BEI, FME.