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German DAX– Retail traders remain heavily short the GER30—a CFD contract which tracks the German DAX—and a contrarian view of crowd sentiment points to further DAX gains.
Our data shows there are currently 1.6 open short positions for every 1 long; 61 percent of positions are short. This represents a moderation from extremes of 2.4 to 1 seen just several days ago. Yet we would need to see a much sharper turn towards buying to call for a meaningful reversal in the DAX.
We will continue to watch for further GER30 gains until we see a larger shift in crowd positioning.
See next currency section: S&P - S&P 500 Remains a Buy until this Changes
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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