DAX down 10% in 2 days, ES down just 5%?

Discussion in 'Trading' started by detective, Jan 22, 2008.

  1. Something is not right here. After the Friday close, the DAX has gone down 10% while the ES is down around 5% and not limit down at the moment. There is no way that the DAX has a beta of 2 over the ES and aren't these problems based in the US, not Europe?

    Looks to me like people are selling whatever is liquid and the DAX is the most liquid instrument at the moment. Also, it has been a strong market so people are taking profits on it. I would short the ES and go long the DAX now and reap the profits. Looks like a no brainer with funds manipulating the ES above limit to keep away the fear.
  2. DAX up 21% in 2007, ES up 5%.
  3. I noticed that the markets started getting pumped higher about an hour after Europe open, seems like the American early birds are putting in bids thinking this is the bottom.

    I think DAX outperforms the ES for the rest of this week. Action in the ES looks like funds milking the futures to sell strength.
  4. Also remember anybody investing in Europe with USD (unhedged) sits on big gains in the currency. 20% on the DAX and 10% on the EUR, I wouldn't mind taking profits here on positions from 2006/early 2007.
  5. dax heavily weighted tech
  6. asap


    dax is a f*** bargin now. ouch, it hurts to catch a falling knife though but a huge rebound is guaranteed. the question is when will it happen? i also "like" the huge b/a spreads we're seeing the dax fut right now. panic trading is a whole different ball game. i cant imagine the amount of traders being crushed by the dax just yesterday. people are used to their own set of rules and think the rules are static, while in fact the rules keep changing all the time.

    from the stories i have heard in germany many of those dax usuals have had a rough ride yesterday because everything seem unreal. no ta, no book, no f*** idea. now, imagine how much does it cost you you're trading 10+ lots and the market, all the sudden, increases the spread to 5 points while you're in the wrong side of the fence. ouch.
  7. Tech has been outperforming the blue chips. Look at the NQ right now, its dead even with the ES even though its a more volatile index. I think its just profit taking in an index that has been strong. I bet DAX bounces back faster than ES once we get the market turn.
  8. TECH? Dax is heavy on automakers and other cyclicals. Not tech. The only "techs" are SAP and Infineon, out of 30 components total.