DAX-AN INDIRECT EVENT PLAY[US 2020 ELECTIONS;BLUE BULL|RED BEAR]The idea briefly explained:
Considering Biden's and the Democrats stance on foreign policy, probabilistically speaking the chances are, of fewer tariffs with US allies, as well as a more comprehensive and less volatile trade policy. Of course, this benefits Germany and the EU in general.
Hence, expecting that the US elections event to turn out as the wedge predictor of whether the current rising wedge in the DAX will have a bullish or bearish breakout. Additionally, the apex of the wedge occurs almost precisely at the time when the elections are held.
Bullish: If Biden wins, despite possible changes to the tax code (which won't be realized immediately), in either situation the target for the DAX should be close to 15000 for the first half of 2021.
The bearish outcome is Trump winning the elections , and I am not going to waste any words on how it has US foreign policy with the EU has worked out so far. The bearish targets in this case are 12500 & 12000.
Finally, COVID news in this case will be the noise of the current price action and the pricing in of the US elections. The bet is indirect because, you can just buy candidate shares. Instead, this ideas is trading on the elections outcome and how it gets priced in via another asset.
This is it for the DAX and US elections. Feedback's always welcomed!
-Step_ahead_ofthemarket
________________________________________________________________________________________
>>I do not share my ideas for the likes or the views. This channel is only dedicated to well-informed research and other noteworthy and interesting market stories.>>
However, if you'd like to support me and get informed in the greatest of detail s, every thumbs up and follow is greatly appreciated!
Disclosure : This is just an opinion, you decide what to do with your own money . For any further references or use of my content- contact me through any of my social media channels.
