Summary of the session 04/10/2018
Thursday’s session was not very pleasant to the owners of shares, the DAX index lost 0.35% first deepening the Tuesday’s minimas and then raising above 12 300 points. A clearly higher session volume involves both sides in the market, and 7,000 new positions on the futures contract were finally added. DAX, however, seems to be more resilient than Wall Street, where declines were the highest in two months – the market expects to see 4 interest rate hikes in the US by the end of 2019.
Among the components of the DAX index, the best result was recorded by Munchener Ruck, which increased by 1.65%, and Deutsche Bank AG closed above the line at 1.54%. The worst performer was Continental -3.80% and Covestro lost 3.41%. The total number of falling companies exceeded the number of gaining listed on the Frankfurt Stock Exchange by 434 to 275.
Yesterday’s session was extremely successful for the portfolio, long positions collected around the support of S1 and the monthly pivot proved to be accurate. Nevertheless, a strong M15 candle down could have caused a headache. The actual upward movement began around noon, and the weekly pivot (grey) did not stop the price, so I would not pay attention to it today. This was achieved only by daily resistance R1, temporarily coinciding with the opening in the US stock market (special for Poland because the signal to start the trade gave Prime Minister Mateusz Morawiecki). There, I also decided to take short positions with a goal of 12,250, which in total gave nearly 200 profit points.
Today the sell-off on Wall Street is continuing, the stock markets in Asia are also down on morning, the DAX hooks on the 12 2235 point and then drops out. I expect that a monthly pivot (pink) will be tested again, its breaking may give an impulse for the next days. The nearest local resistance is 12 315 while support: S1 12 135 and below 12 110 points. So far better data on orders from factories and PPI inflation did not cause a demand response, probably the market is waiting for the “dish of the day”, ie Non-Farm Payrolls at 14:30.