someone posted a few weeks ago that the DAX looked toppy.....
Again I'll say, many do not understand the markets reaction to either lowering interest rates or quantitative easing.
The RBA meet on the 7th April when an interest rate cut is expected. You might find that the xjo goes well over 6K by then. Should the RBA cut rates (there will be more than one more this year) the market could go another say 5-10% before stabilizing.
However should the bank not cut rates I'd expect the same reaction earlier this month. I've got a rather profitable long position and will wait until the pm of the 7th.
I have also learnt by hard experience that shorting a market that is controlled by a Central Bank is very difficult and highly unpredictable.
The xjo is only ~750 points away from it's historic high eight years ago and there is every chance that it will smash that record this year on it's way to who knows where.
For me it's better to just close out of a long xjo position than go short.
