DAX to make a strong finish by year end !

On 11th July, I  highlighted the fact that US30 yr Bonds will rally and  target 141.50. Further a bearish equity note indicating equity indicies especially DAX ..

Since the note was posted  US 30 Yr traded 141.50 and DAX corrected lower by 10% . My weekly and monthly model forecasts have now indicated a very strong rally in Equities into the year end especially DAX  to trade 10500.

The US conterparts are already trading at life time highs whereas DAX is lagging. ECB easing is likely to boost liquidity amongst European banks and support growth in coming quarters. Overall growth in developed nations especially US & UK will have a positive spillover effect on Eurozone sooner or later. Hence the catchup theory calls for a Long DAX on dips strategy targeting 10500 by year end.

If you are a chartist and follow charts on a monthly and quaterly scale then the current bounce from 8900 level on Dax will appeal you.

best of luck traders.

AUD & JPY crosses risks lie to the upside breakout.

Buy AUDCAD 1.0180 Stops 1% for 1.0300
Buy AUDJPY   96.00 stops below 95.00 depending on your risk appetite as the pair heads to 99.50
Bullish USDJPY forecasts from my weekly model with initial target 104.70/105.00 and depending on the monthly close in August potential for 107. i.e if Monthly close in August > 105 then very good potential for 107.

I am relatively bullish AUD and bearish JPY hence AUD/JPY does the job for me.