German DAX Likely Continue Recovery Rally
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German DAX– Retail traders have recently turned net-short the GER30, which tracks the German DAX, and a contrarian view of ‘crowd’ sentiment leaves us in favor of buying into DAX gains. Indeed this represents a substantive shift from last week when the majority of open GER30 positions were long.
Given recent price momentum and the key change in crowd behavior, our forecast calls for further German DAX rallies. Only an aggressive sentiment swing in the opposite direction would change our short-term trading bias.
See next currency section: S&P - S&P 500 Looks to Rally even Further
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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