Pullback in the DAX = Possible Buying Opportunity
By Jim Dondero | April 16, 2015
- Crude oil has been quite strong this week, and is very close to breaking through the key $57/barrel area. Should it, a meaningful bottom could likely be in place. While clearly a contrarian call this is exactly what is being suggested by the Commitment of Traders report, which shows far less forward selling by producers than in January.
- While stocks in the US remain stuck in their recent ranges, they have been trending higher from a longer term point of view, something market internals have been supporting. The only real concern remains the underperformance of the financial sector, which can diverge at important tops and bottoms. Small & midcaps have been particularly strong, likely of course due to strength in the US Dollar.
- Markets overseas continue to improve with Chinese markets in particular adding to their recent gains. Quantitative Easing by the ECB is likely to be a very positive influence on European markets, and we view the current pullback in the DAX Index as a possible buying opportunity.