FxWirePro Call Review: DAX bulls riding on U.S. -EU trade optimism threatens or short call

The recent agreement reached between the U.S. President Donald Trump and European Commission President Jean Claude Juncker to formally begin the trade negotiations have energized the equity bulls across the world, and it is threatening our short call on the German benchmark index DAX or GER30 (CFD of DAX).

After our previous short positions got stopped out as the bulls charged in April and as we revised the stop lower, we have recommended re-entering short positions in the last week of May at the then current rate of 12970 with the stop loss around 13650 area, https://www.econotimes.com/FxWirePro-DAX-GER30-enjoys-longest-weekly-Bull-Run-since-2015-but-that-might-change-soon-enter-short-positions-1327168

The call is still in the money as DAX/GER30 (CFD of DAX) is currently trading at 12860 (GER30) and based on our latest calculations, we think the call might be under threat if the trade optimism continues. The calculations suggest that DAX might test the 13500 (GER30) area on trade optimism, however, at this point, we do not recommend closing the short positions.