DAX spike

Discussion in 'Index Futures' started by Kicking, Oct 4, 2005.

  1. Anyone knows what caused this huge breakout in Dax at 10:10 am ET? heard it was the SPR news, which cause the US market to rally, can 't see why that would cause DAX to go ballistic like it did, also it seems Dax xtarted moving before US futures. To me it's a squeeze, buying capitulation short term top possibly. Just wondering about the fundamental cause for the move
  2. fitrol


    Would love to know the reason also...seems like dax is going up regardless of all else around it!! It was bid all day, even when they sold the US...but has been like this for a few days now. Possibly election hangover, more liklehood of a coalition!!??
    I hope at least we get a sell off (20-30pts) in the morning, so i can recoup a little of what it took from me today!

    Peace & Profit
  3. Can you post a chart? I don't see a spike on mine at that time.
  4. well not really a 1 min or 3 min bar spike, just a huge vertical breakout in about 15 minutes
  5. 5159 was a significant level. It represents a 50% pullback from the highs of March 2000 to the lows of March 2003. Once we broke though 4190 and 4457, this level became the next logical resistance point. The rallies are driven by fundamentals and mass psychology, in my opinion. The Euro is threatening its recent low which should boost equities in Germany. There is also a lot of talk of high unemployment, inflation, etc in the papers, news and other media. This obviously signals a move based on mass psychology (if things are so bad, then there must be some bargains to pick up right now).

    Again, this is just my opinion. I'm not a long term trader or investor. It doesn't really make a difference to me why it moves or in which direction as long as it moves. A really nice short squeeze... I must say.

    Today's close was quite bullish on the tape since it seemed like there was still some buying interest. This changes for tomorrow if we get below 5112.5 and 5084 and hold there.

    The next major level up in the FDAX is 5520.0.
  6. "Today's close was quite bullish on the tape since it seemed like there was still some buying interest. This changes for tomorrow if we get below 5112.5 and 5084 and hold there."

    To me, that looks like a market trapped too high on its close today.

    I'd be looking for it to open or trade down 15 - 25 points right away. I have no trade on in dax today and I wont find out if I'm right or wrong at 3 am because I'm going to sleep off a second plate of real decent spaghetti tonight. :)

    But good luck to all in dax tonight/today.

  7. fader


    well i'd say the frankfurt close around 17:30 CET indeed looked bullish, going out right on the highs for the day (also multi-year highs)... spreadbetters now quoting the december future around 5130, so a down open likely tomorrow in line with the U.S. close.
  8. How are you able to determine this?
  9. fader


    http://www.igindex.co.uk/ they quote the dax 24 hours

  10. futurestrader,

    you are a short term trader but you speak like a CNBC talking head, sorry! what I am asking is if the report of the SPR heating oil release came out around the same time the rally occured. Is this what caused the US rally that was preceded by the DAX which rose much more than US futures because of pure technical buying? This report was mentioned several times on CNBC as te cause for market being up but after the market went down and heating oil back up you could no longer find any mention of the US Energy secretary statement!
    #10     Oct 5, 2005