Back in January this year, in an article named, “FxWirePro: Buy DAX, sell 10-year bund”, available at http://www.econotimes.com/FxWirePro-Buy-DAX-sell-10-year-bund-470271 we at FxWirePro recommended buying the German benchmark index DAX at the then current rate of 11600, while maintaining short positions in German 10-year bund as we anticipated that DAX remains undervalued when compared to the North American benchmark S&P 500, despite Germany’s strong economic performance, and the bund would suffer from ECB’s gradual tapering and higher inflation.
In a subsequent call review in May, named, “FxWirePro call review: Keep bund short, keep DAX long for another 1000 points” available at http://www.econotimes.com/FxWirePro-call-review-Keep-bund-short-keep-DAX-long-for-another-1000-points-683779 we extended that target for DAX by 1000 points from the then current rate of 12600.
The DAX call has been very profitable. The German benchmark index is currently trading at 13060, which means that we have pocketed 12.6 percent gain so far. In this call review, we would like to reiterate our commitment to the buy side as would extend our current final target from 13600 to 14100.
