The global sell-off in equities abated yesterday, as the main indices staged mild relief rallies. Even so, further weakness seems likely, as markets respond to the prospect of American QE withdrawal. Whether or not this move lower represents the beginning of a new trend remains to be seen, but for now I plan to treat this as a healthy pullback, to be bought into. So far stocks haven’t quite dropped far enough to tempt me into long positions, but if they do over the coming days there could be a very attractive trade in the German DAX.
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