Market-Technical Factors

"Homo oeconomicus" still exists in theory, but on the stock exchange, real investors – including the professionals – are also driven by emotional factors. Against this background, the analysts at DJE Kapital AG measure market sentiment using selected indicators and can often know in advance in which direction the trends are going and therefore react appropriately in a timely fashion.

Financial indicators for the investment intentions and the positioning of market participants, such as puts and calls, cash positions of equity funds and directors dealings are meticulously analysed. Numerous polls in both Germany and around the world provide additional indications to the sentiment of investors. All these indicators are systematically captured and evaluated in our proprietary database. We continuously implement new ideas and identify and utilise opportunities for broader data collection to further optimise the system.

With this methodology it is possible to identify extreme market moods and assess them objectively, identifying the crucial moment when one should act contrary to the crowd. Until that point, the most important stock market rule applies: "Follow the trend, because the trend is your friend."