1,000-Point Crash! DAX Pulverizes the 24,000 Mark in Free Fall!
The much-cited "Turnaround Tuesday" has failed brutally! Instead of a saving counter-movement, the German leading index is continuing its rapid descent unchecked. In less than a week, the DAX has squandered an unbelievable 1,000 points and closed with a severe minus of 1.62%, crashing below the psychologically essential mark of 24,000 points. The bitter reality: the inflation spiral ignited by the escalating Iran war is massively depressing sentiment. It is leaking out that the U.S. military has massively burned its fingers during its deployment. Devastating damage to U.S. bases and surprisingly depleted weapons stockpiles point to an extremely drawn-out conflict. The Strait of Hormuz remains closed, and energy prices remain high. The last hope? A diplomatic liberating blow by the U.S. President on his trip to China to position Beijing as leverage against Tehran.
Bayer Ignites the Turbo—Zalando Stock Implodes Below 20 Euros!
Amidst this blood-red market environment, the Bayer share is demonstrating an almost unbelievable strength. Completely unimpressed by the massive sell-off, the stock sovereignly took the top spot in the DAX with a brilliant price jump of 4.3% and is impressively resuming its upward trend! A catastrophic picture, on the other hand, is emerging at the bottom of the index: Münchener Rück (Munich Re) took the red lantern with a dramatic plunge of 5.4%. Staggering right in front of it is the e-commerce flagship Zalando (-5.1%). The air is getting increasingly thin for the online fashion retailer. Despite an ongoing share buyback program, the stock was mercilessly battered below the critical mark of 20 euros—the downward pressure is currently gigantic!
Highly Dangerous Wall Street: Is the DAX Now Threatened With Pneumonia?
Meanwhile, the current negative correlation to the U.S. markets is setting off all alarm bells for professional investors. The ironclad stock market wisdom warns: When Wall Street coughs, the DAX is immediately threatened with fatal pneumonia! From a technical perspective, the rapidly whipped-up U.S. indices are extremely overextended—a sudden, brutal setback is overdue. Should this tremor occur, it would inevitably drag the already severely battered German leading index into the abyss with full force. Another highly dangerous contrarian indicator: the stubborn positioning of retail investors. As long as this camp incorrigibly continues catching falling knives and signaling blind buying interest, the final bottom of this brutal DAX correction is definitely not yet over!
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