Rally in Danger? DAX Celebrates, But Trump Shocks Markets Before Easter
The massively strong Tuesday was impressively eclipsed yesterday, Wednesday. With a brilliant price jump of 2.7%, the German leading index literally shot through the roof, ending trading at a proud 23,298.89 points. But the exuberant bull party could face an abrupt and painful end today, Maundy Thursday. The highly anticipated address to the nation by U.S. President Donald Trump completely missed investors' high market expectations. Since trading volume traditionally thins out heavily just before the long Good Friday weekend, extremely erratic, hard-to-predict price swings are absolutely to be expected today. The nervousness is palpable.
Easter Boom at DHL: Stock Hits the Turbo, GEA and Symrise Follow
Completely unimpressed by geopolitical saber-rattling, DHL Group presented itself exceptionally well on Wednesday. As the undisputed daily winner, the stock catapulted to the top of the DAX with a massive gain of 4.7%. The logistics giant is benefiting from historically strong demand: company circles report expecting an absolute record parcel volume over the upcoming Easter holidays. Analysts at JPMorgan are also applauding, consistently maintaining an "Overweight" rating on the stock. From a technical perspective, the stock has now spectacularly bounced upward off its massive support for the second time. Trailing behind but rock-solid, GEA Group landed in second place, closely followed by the defensive perennial favorite Symrise AG, which once again accurately secured a spot in the top 3 of the leading index.
Trump's Speech Dictates Trading: When Technical Analysis Suddenly Fails
For today's shortened pre-holiday trading, the echo of Trump's address will dictate the sole narrative on the trading floor. The all-important question is: How aggressively will institutional investors interpret these unpredictable statements and translate them into hard trading decisions? Retail investors must exercise the utmost caution right now. In such impulsive, purely news-driven market phases, classic technical analysis loses almost all of its reliable predictive power. Crucial support lines can be pulverized within seconds. The momentum pendulum, which swung so unstoppably to the buyers' side yesterday, threatens to mercilessly swing back in favor of the bears today.
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