Expiration … and everybody had to buy … again
After 10 days of stepping sideways … not being able to move …
today expiration demand overwhelmed sellers.
We finally reached our 7190 Dax cash target … What’s next?
Next week will be very interesting as bulls now are under pressure to fefend their territory.
Next week will decide, whether we go into rallye mode, squeezing up to around 7400 … or … what I expect … will slowly retest to around the 6800 area.
My reasons for being on the cautious/bearish side:
- Inflation is ramping …
- Oil still high
- Interest rates rising … valuation pressure on equities
- Complacency sets in … a growing number of investors talks market higher as they already bought (DWS and DEKA from Germany)
- Credit crunch is said to be over … I doubt that
- Housing problems and weak retail sales to continue
The only reason to be positiv … it is all so obvious 
Have a nice weekend!
Tags: expiration, outlook
