The Dax smashed through the 12000 level this week as export dependent economies in Europe, like Germany, rally on the back of the European Central Bank’s quantitative easing program. The EUR 60 billion QE stimulus has successfully weakened the common currency to lows not seen since the early 2000’s. The German Dax has gone up “like a rocket” according to Serge Berger, also known as The Steady Trader, creating the underpinning for a volatile reversal.
As the Dax prepares for its 8th straight week of gains, Serge is calling for a period of consolidation on the index somewhere between the 5-10% range. He explains why his tactic is not to go short but to buy the dips, despite European stocks being decidedly overbought.
Watch the short video HERE