DAX | Wave analysis of the ticker

A month ago I told you that along with reaching historical highs, there must be some powerful positive news about Europe (https://t.me/eightyninewaves/3354). For example, revenge for the first two world wars. It is very difficult even to imagine who Germany is going to win, but this victory will be in the news with the topic: cheap gas, low inflation, economic leadership in the region, and maybe even…

Anyway, let’s not talk about the real world here, we’re just drawing fun pictures of the DAX making new all-time highs soon. And it will do so twice. Well, the collapse of the industry, the change of the European center to Great Britain, the devaluation of the euro and as a result the collapse of the EU is a completely different story…

#DAX. Germany’s victory – critical sentiment. A month ago I told you that along with reaching historical highs, there must be some powerful positive news about Europe (https://t.me/eightyninewaves/3354). For example, revenge for the first two world wars. It is very difficult even to imagine who Germany is going to win, but this victory will be in the news with the topic: cheap gas, low inflation, economic leadership in the region, and maybe even… Anyway, let’s not talk about the real world here, we’re just drawing fun pictures of the DAX making new all-time highs soon. And it will do so twice. Well, the collapse of the industry, the change of the European center to Great Britain, the devaluation of the euro and as a result the collapse of the EU is a completely different story…

I understand that few people were able to long at the end of September and believe in the EU on the forecast that came out then (https://t.me/eightyninewaves/3116). But those who trusted the WA methodology should be very happy now – 30% of growth in less than six months.

I think it’s dangerous to be further in the longs – I’ve fixed all my positions. It’s better to wait out further growth in more comprehensible and quieter assets. I will talk about them in future posts here.

And now an alternative “collapse” scenario may begin to materialize, it is marked here with a gray dotted line. But for now the main colored option has more chances.

In the fall I advised to buy European stocks whenever possible (https://t.me/eightyninewaves/3116). At that time everyone was screaming about freezing in the coming winter, about falling industrial production, capital flight and the cheapening Euro. But the 89WAVES analysts, who know what sentiment is and how to work the ending diagonal, were right – we took a 20%+ rise.

Now I would advise to close longs – there are risks of steep fall. But the chances to reach the historical highs two times are still more.

#DAX. Who sits in European stocks (how do you do it?), have the option of their collapse. So far, everything is going according to the plan, but now it can go (there are calculations) in both directions. Before that, there was only an upward path.

It will soon become completely obvious even to the average burgher that they want to sacrifice the German economy to the end of the war. Sabotage on Nord Streams 1 and 2 is another confirmation of this. But will Germany cope with the betrayal of its government? Both options are marked on the chart.

Both of them assume growth from +/- current levels, but one to historical highs, and the other by only 10%-20%. Further, a collapse to the floor is envisaged for both scenarios, but the first will take years, and the second months.

Without cheap resources from the Russian Federation, growth to historical highs is not realized. Germany’s only economic growth option is to start trading with Russia.

I have already written in detail that the collapse of the EU is a very distant prospect (https://t.me/eightyninewaves/2791). Now we are seeing almost complete solidarity and consolidation, this is a sign of positive sentiment. Which, of course, will lead to the growth of the market, and not to its fall.

The resource of Europe is not in cheap and accessible (energy) resources from the periphery, but in the rich (solvent) population – this market is just a gift for all exporters of raw materials, including from the USA. Their markets go almost synchronous – this is a reflection of the sentiment of the consolidated West. For how long?.. There is a stock at least until the end of the year, judging by the charts.

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#89waves

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#DAX TF: 4H

Yes, but not now and not because of what is happening in Ukraine, but rather the opposite. I already wrote earlier that special operation is beneficial in the short term for the United States, and the migration crisis – for united Europe. From the previous reviews, we can make a short conclusion that the conflict between the EURF, the hot phase of which is developing in Ukraine, is itself also local in the confrontation between the USAPRC for leadership in the new brave world.

Today we will talk about Germany as the center of the economic power of the EU. It has already decided the issue of workers, now its capitalists need to try to maintain the standard of living of their consumers in the conditions of the energy crisis. And there is only one chance – after the end of special operation to negotiate with Russia.

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#DAX TF: 4H If it doesn’t work out, then in winter direct subsidies to the population and quantitative easing of unprecedented scale by the hands of the ECB will be used, which will provoke an unprecedented increase in inflation and the stock market.

To simplify, Germany lives by pumping the rest of Europe with goods and money on credit for their purchase. If it fails to ensure the competitiveness of its producers in the foreign market, then miraculously Eurosceptic separatists will enter the scene, hold a referendum, and GEXIT will happen, in which Europe’s debts will not be written off. And in the moment germans will have a lot of money, which again will inflate the stock market.

Returning to Wave analysis, the fall from historical highs is a double zigzag, and growth from recent lows is an impulse. This means that the issue of establishing new historical highs is a matter of time. Most likely, we will see them in the summer. But I will not recommend investing in Europe, US stocks look more reliable in this regard so far.

Share this channel, please, with other people interested in trading. It is very easy for you and it will be very helpful for me. Do appreciate your help
#89waves

You can ask any questions in the chat: https://t.me/ewt_chat

#DAX TF: 4H

You can see from my posts that I am very pessimistic about the US funds and the US dollar. But at the same time I recommend and partially keep my savings in euros. So maybe a reasonable question is ripening, to invest in the stocks of the locomotive of the European Union – in Germany? Instead of a boring currency with inflation and possible sanctions. Let’s figure it out.

In relation to the US, Europe is a periphery. Of course, not as deep as Russia. Compared to something close to our hearts, their relationship is similar to Russia and Ukraine before 2014: some skilled workforce from Eastern Europe periodically leaves the EU, but the capital remains mostly in Germany and other Western European countries. That is, it is a separate market in many respects competing with the US market.

#DAX TF: 1M, 4H The United States itself is facing inflation unprecedented in recent history, and it is not possible to curtail QE until the pandemic is completely over and economic growth begins. The only option is to export inflation through bubble inflation in other markets. Cryptos has already been bubbled and will continue to be bubbled, commodities will soon be inflated, and then the markets of the countries of the bloc friendly to them: Japan, Britain, and last but not least the EU.

But will everything go according to their plan?… =) This is where EWT comes to our aid, see the charts.

Share this channel, please, with other people interested in trading. It is very easy for you and it will be very helpful for me. Do appreciate your help
#89waves

You can ask any questions in the chat: https://t.me/ewt_chat

#DAX TF: 1M, 4H