We provide you a full list of DAX 30 stocks and companies below.
The DAX is Germany’s most important index and comprised of many "blue chip" style stocks. The exchange has been extremely volatile (as of February 2020) in the past week like many exchanges across the planet.
The reason? Well there are many reasons. Sentiment, economic slowdown, global pandemic fears from the Coronavirus, to name a few. We see some technical issues as well.
If you review the charts, you'll see the DAX 30 completed a false breakout, just barely inching above 3 year highs only to retreat in the latest market drop.
We're watching 11400-11600 range for angular support on the $DAX. Use the chart to the left to draw an angular trend line to spot the big daily support level that traders and investors are watching for a potential reversal.
As with everything in trading and investing, keep your eyes on the charts! Check out our full stock indexes list.
Horizons DAX Germany ETF
iShares MSCI Germany ETF
WisdomTree Germany Hedged Equity ETF
DAX 30 Futures
Fresenius Medical Care
MTU Aero Engines
Knowing that the DAX index is a bellwether for the German economy it makes sense that investors and traders alike will monitor the German economy.
That being said it does appear investors are concerned with Germany's economic growth. The economy showed zero growth in the fourth quarter of 2019, following a 0.2 percent expansion in the previous three-month period, as household consumption went flat and net trade contributed negatively to the GDP due to a 0.2 percent decline in exports.
Furthermore, government spending rose only slightly (0.3 percent vs 1.3 percent) and fixed investment in construction increased 0.6 percent (vs 0.4 percent in Q3) due in part to the unseasonably warm weather. Investment in machinery and equipment investment fell 2.0 percent.
Did you know Germany represents 6.5% of the worlds economy? When you start forecasting zero growth, or negative growth, then you have to start thinking about the R word (recession).
If we get to that point read about how to trade bear market strategies.
There are several different ways that you could trade the DAX 30 Index. You can trade both options such as the $DAX and futures such as $FDAX. Options can be used to hedge against existing financial investments or for speculation to trade for profit. Futures trading is a great way to capitalize on directional based markets, whether they are trending up or down. Read More
There is a lot of uncertainty going on right now in the DAX due to the global crisis of the Coronavirus. News both positive and negative affects markets and the Coronavirus is definitely bad news that's rattling the markets around the world. Up until February 2020, the DAX was on a nice run, and then it completely tanked in late February.
This didn't just happen to Germany's stock market though, the virus has tanked most of the major indexes. Make sure to read our latest blog post: Will Coronavirus Crash the Stock Market?
For those that are prepared, you can make a lot of money as the DAX declines. Bear market trading is a very popular trading strategy, especially when there are sharp declines. Day traders and swing traders love this type of trading. Again, options can be used as a hedging strategy on the DAX index for current investments on stocks, or they can be used to trade for profit.
The bears were hoping for awhile going into 2020 that the markets would fall like they did in February but they kept getting trapped until the Coronavirus hit. Then they took control and the bulls got hammered. Now, we have to wait and see what happens. Again, there is a ton of news and many more cases of the virus spreading around the globe, which is most certainly going to affect all of the global markets until something changes.
If you're bullish on the DAX then you want to see price start to get above the 50 simple moving average on the weekly charts and to hold support. Then you'd ideally like to see price get above the 9 ema and hold for the bull market to continue. The problem is that is a lot of resistance to overcome. If price action can't get above those resistance lines again then the bull run might be over with and we may be entering a bear market.
Bear markets aren't very fun for the DAX or any type of long term investment strategies. We've had a couple of major ones over the recent years in 2000 and 2008, which wreaked havoc on the markets. This is why it's important to understand candlestick patterns, trendlines, and how price action works, so you can be prepared with your investment strategies.
If your investments are in risky funds at the top of markets then there's a good chance that you could give back a ton of your profits when the steep declines hit. This is where proper risk management strategies come in with your investment portfolio.
Warren Buffet has a saying to be fearful when other people are greedy and greedy when other people are fearful. What does this mean? When people get overconfident at the tops of markets and start buying at resistance levels, this is a great way to get trapped and caught of guard. Many of times traders take profits at resistance levels or news catches people of guard and panic selling ensues.
Also, the inverse is true. Many of times the markets sell off heavily and traders or investors get too nervous to buy. Warren Buffet provides good advice but it's important to know how this all plays out in the real world. That's why it's so important to learn how to read the charts to be prepared.
So, you need to be careful buying at the tops of markets, but also be careful trying to catch a falling knife as markets fall before they've reached support levels and have held.
The term buy low and sell high sounds good and is true but most investors don't know how this plays out on stock charts. If you try to buy low as price is still falling and hasn't found a bottom, this is very risky. Sadly, this is what happens to most traders and investors. They don't patiently wait for reversals to take place. They listen to news or speculation and this is how they get burnt many of times.
Look for doji or hammer candlesticks on the charts. You ideally want to see theses candlesticks off major support levels on weekly and monthly charts off major moving average lines like the 50 and 200 sma. Once you see this happen, then you might look to go long at the breaks above these candlesticks but keep an eye on major overhead resistance levels such as the 9 and 20 ema. Just because a reversal takes place doesn't mean it won't reject at those levels again.
Our trading community teaches how to capitalize in any type of market, whether it's a bull market or bear market. We focus particularly in the US markets, however, what we teach you can be applied to the DAX Index or any other market. Price action is price action, and technical analysis can be applied to any charts.
Learning technical analysis will be one of the most important skillsets that you can learn to protect your financial portfolio long term, and also profit from the corrections of the overall market along the way. The key is to be prepared and learn how to track the history of the DAX market and be ready.
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