It’s Not Time To Sell The German DAX

 | Oct 22, 2015 02:38PM ET

"He who trims himself to suit everyone will soon whittle himself away."

-Raymond Hull

Again, the talking heads are claiming that there is a pattern that overtly implies that the Dow tends to follow the DAX. When the markets were free or had some elements of freedom in them, one could give some credence to these patterns, but today, where fraud and manipulation are the order of the day....... Such patterns have to be taken with a jar of salt. By maintaining an ultra-low interest environment for an unusually lengthy period of time, the Fed has fostered an environment that rewards speculators and destroys savers. Nothing could be more insane, but this is the predicament most people find themselves facing today.

The only pattern that matters today is whether the Fed stops manipulating the markets or not. So for now, it could be quite dangerous to base major decisions on patterns only. Furthermore, if Peter thinks, debt is good, then there is a strong chance that Paul will follow suit. Central bankers in Europe and the U.S. and a host of other nations have created the environment that promotes speculation; the era of easy money is not going to come to an end in the near future.

Do not follow the crowd or popular experts, for other than telling a good tale, their so-called expert advice is best left for the fishes. Thus, we feel that the DAX, like the Dow, is paving the way for a much stronger move up, after a test of the current lows.

What’s next for the DAX