c09 JWBT016-Busby September 30, 2008 14:11 Printer: TBD
Dancing with the Dax 111FIGURE 9.2 A five-minute chart of the Dax as it nears its daily close on April 28,
2008.Review
I enjoy my dance with the Dax. The Dax is a good reflection of global mar-
ket sentiment, and understanding it will improve your trading with bonds,
stocks, and other products. I gain a bit of confidence by using the Dax as
a market indicator. Because Germany is Europe’s largest economy, the in-
formation reflected by the Dax numbers is very important.
I have several trades that I often make on the Dax. I trade early
in the morning before the U.S. exchanges open for business. Using the
6:00AMDax number, I am able to determine market sentiment and trade
with it. Around 10:30AM, I pay careful attention as the other big exchanges
of Europe close their trading pits. Sometimes I execute some positions and
ride the wave of those closing to profits. My vehicle is the Dax. Finally,
there is another trade that I anticipate regularly. Both the NYSE and the