German index falls as most stock markets do during the day

The German index fell significantly during the trading session after Donald Trump announced that the meeting with the North Koreans was canceled. Because of this, it looks very likely that the reaction in the stock markets would probably be short-term, because if you believe that the only reason the DAX has rallied over the last several weeks is because the Americans and North Koreans are getting together, then you would be confused. However, there is a bit of a “risk off” attitude, as traders react in fear. Longer-term, I think that the buyers are still underneath and will be looking to the markets for opportunities and value. I think that the €12,750 level is the initial support level, followed by the €12,600 level. Although it has been rather negative during the day, I think that if you are patient enough, you could see plenty of opportunity to pick up a bit of value.

Ultimately, I think that the market should return to the highs, unless of course something drastic happens financially, but North Korea is an even part of the global economy, so eventually I believe cooler heads will prevail, and of value hunters will continue to look to the DAX as a way to put money into the European Union as it is the “blue-chip index.” Even though it looks negative in the short term, I’m not interested in selling.

DAX Video 25.05.18