Short DAX at 7740

Quote from Runningbear:


I swing trade the DAX and ESTX50. I use pure quantitive methods to determine the internal structure of the market and measure the strength of the bias for long or short trades to be taken. I was short into yesterday and closed out before EOD.

Interestingly, the readings on my models are strongly bullish for both DAX and ESTX as of market close Tuesday 12 July. That's not to say that close Monday was a low. Just that current prices are now in the buy zone. Or more specifically the support zone. A gap down on open Tuesday would be an excellent buying opportunity. If Tuesday is a low range day, then Wednesday will probably offer good buying also.
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Well done.
I was doing something similar with dow-dax.
 
Got long at about the mid point of Tuesday's range. Just added to long DAX position after first hour of trade today (Wednesday). Now just sitting pretty.
 
Wednesday was a nice up day as expected. We saw a bit of short covering late in the session on the DAX. Im now sitting on a nice profit. Looking to exit on Thursday. Will Sell into any strength early on Thursday. Hopefully on a retest of Wednesdays high. If we take out yesterday's high, even better.

Friday likely to be a down day as traders get flat for the weekend.
 
It's almost assured that the market will go lower in the next 8 weeks, but for the time being, the Dax needs to fill the volume gap around 7250-7300. I'm expecting a slight rally into this zone and then I think we'll see a lot of short volume come into the market in preparation for the next leg down.

Be warned though, if we get an early announcement that the US is going raise the debt ceiling, we may see a three or four day rally that will hurt the shorts.
 
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