Which factors speak for rising and falling prices

Dusseldorf Since the end of September, the Dax has risen by more than 30 percent, an increase of around 3650 points within a good four months. The history high dates from last Thursday and is 15,520 points. The current rally is one of the most extreme in the entire history of the Dax. Which factors investors should consider in the coming trading days.

1. Positioning gives hope for a short squeeze

After the rapid increase in the four months, both professional investors and private investors expect prices to fall again. Both groups of investors have increased their share of put options and leverage products in the past few days, as can be seen from the data from the Frankfurt derivatives exchange Eurex and the Stuttgart derivatives exchange Euwax. They use it to hedge their profits or speculate on falling prices.

In any case, that’s a common, understandable reaction after this rally. But overall, this initially prevents a major crash on the stock market.