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.
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