DJ; RE:" DAX... tell me it's not bullish "
ref the chart you E*MAILed me with this (rhetorical) question.
{ ...closed my DAINN DAI FEB 70 PUTs today @ 2-1/4, +5/16 = +16% }
You know this T/A measure called MACD Moving Average Convergence / Divergence ? Consider that the world's stock exchanges are roughly correlated; perhaps we could say that the NYSE acts as a kind of bellwether in this regard.
Of course, professor - the DAX chart you sent me was quite bullish, indeed. But take some EMA's (exponential MA, say 9- or 15-day) of the NIKKEI, the HangSeng, the DAX and the DOW. What I saw was that the Asian markets were "diverging" down from the US and EU. Then what I saw was that the NYSE began to respond, but the DAX was not, really. One could measure and trade upon this divergence, constructing a table resembling the cross-currency exchange tables that you are already so familiar with.
So far, I have been using DAI (Daimler Benz ADR) as a "proxy" for trading the DAX, rather like Berney-Dude used GE as a proxy for trading the DJIA.
But I think we're on to something here - playing this arbitrage or "divergence" between the markets has been profitable for me so far.
Let's run some EMA's on the world markets and then stuff them in to a MACD engine and see what we get.
-Steve |
