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Investment Recommendations May 10th

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Investment Recommendations May 10th

Introduction

DAX: Short-Term Sell (Update)

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DAX, 4-Hour Chart Analysis

The German Index remains very close to its post-election highs just above the 12,750 level, although it failed to make progress in recent days. The benchmark is still clearly in overbought territory, and slightly above the upper boundary of its dominant advancing trend channel, pointing to a correction in the coming days. Our recommendation remains intact with the stop-loss level above the 12,800 level and the initial target zone between 12,400 and 12,500. The MACD is close to providing a sell signal at overbought levels.

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Mate Cser

Mate Cser

Trader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.

Comments
  • user

    AUTHOR MSNP05

    Posted on 5:42 pm May 10, 2017.

    How to short sell a stock if I have not bought any ? Sorry for such basic question 🙁

    • user

      AUTHOR Mate Cser

      Posted on 5:50 pm May 10, 2017.

      Hi great question don’t worry 🙂
      Stock indices likd tvs DAX, S&P 500 are very easy to short on the most platforms (usually through CFDs, but that doesn’t matter for you) you just simply sell them when you don’t have an open position.

      Same goes for the biggest stocks. Smaller stocks might be trickier and sometimes costly,but I don’t recommend shorting smaller stocks as a beginner anyway.

      If you have a question regarding a specific platform, I am here to help 🙂

      Good trading!

  • user

    AUTHOR MSNP05

    Posted on 5:58 pm May 10, 2017.

    Can I use fidelity or robinhood to short DAX? And your other recommendations. It would be nice to have a video tutorial on this. Thank you for teaching me.

    • user

      AUTHOR Mate Cser

      Posted on 6:53 pm May 10, 2017.

      I will look into those two brokers and get back to you with the best options soon!

    • user

      AUTHOR Mate Cser

      Posted on 1:47 pm May 11, 2017.

      So a quick update on shorting the indices and trading the recommendations:

      The S&P 500 is easy you can simply by the short-S&P 500 ETF with the ticker SE, or short sell the ticker SPY (this doesn’t work at Robin Hood).

      The DAX is trickier, as there is no short ETF so the only option with stocks is to short-sell the ticker EWG.

      Gold: the ticker GLD tracks the price of gold, you can buy and short sell it.

      Oil is harder to track precisely with stocks, the best way is to use the ticker USO which tracks WTI Crude.

      As Fidelity and Robin Hood doesn’t offer futures or currency trading, you won’t be able to trade commodities or currencies directly just through ETFs. Might be worth considering a broker with a more wide selection of assets (Interactive Brokers or TD Ameritrade for example). A good resource for trading ETFs is this website.

      Let me know if you need any more information!

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