Recently the Dax has been under pressure seeing solid days of selling on Tuesday and Wednesday of this week. US debt default risk, geo-political tensions, a gloomy German IFO print, and high UK inflation likely to prompt higher rates from the BoE all weighed on sentiment.
However, seasonally a weak summer for the Dax is not a surprise. In fact the Dax’s seasonals are pointing to further summer weakness. Over the last 15 years the two weakest months for the Dax have been June and August. So, with June just around the corner, is there more down days to come for the Dax?
Major Trade Risks:
The major near term trade risk here is for a short bounce in sentiment if the US debt ceiling talks are successful over this weekend.
Remember, don’t just trade it, but Seasonax it!