Uddrag fra marketear
DAX mania
DAX remains inside the trend channel that has been in place this year. Note the “perfect” bounce on the 21 day and the lower part of the trend channel during Friday lows. RSI came down during the consolidation, so things aren’t even that overbought at the moment…
Source: Refinitiv
Huge
We turned neutral on EUR/USD last week following what we perceived to be a material shift in German fiscal policy. Since then, the size of this shift is becoming even larger and more pronounced. According to credible news reports, CDU/CSU and SPD are now in discussions over setting up two off-budget funds for defence and infrastructure, amounting to EUR 400 bn and EUR 400-500 bn respectively, or about 20% of GDP jointly. Even if spent over ten years, this would be about as much money as the country has invested in East Germany since reunification: a fiscal regime shift of historic proportions. (DB, Jim Reid)
Defense
SXPARO, Euro Stoxx aerospace and defense index, needs a bigger chart. Note just how far down the short term 21 day is trading…not to mention the 200 day.
Source: Refinitiv
You know things are squeezy…
…when the biggest losers in the index are all up.
Source: Refinitiv
Defense is the best offense
Europe’s new major theme going parabolic. A few random names, from the top (in % over 1 month): RHMG, SAAB, Leonardo, Thales, Dassault aviation, BAE systems.
Source: Refinitiv
AI is so 2024
Who needs AI when you can have RHMG? The stock doubled from January lows to today’s highs. RSI at 87! Chart 2 shows RHMG vs NVDA over the past 6 months: RHMG +110%, NVDA +4%.
Source: Refinitiv
