ECB's Steady Hand: Watching DAX for Re-entry
Lagarde's comments yesterday about keeping rates higher for longer really puts a damper on the 'early pivot' crowd, doesn't it? The market seems to have mostly priced it in, but there's always that cohort holding out hope for a quick return to cheap money. Saw the DAX dip ever so slightly on the news, nothing dramatic, but enough to confirm that the ECB is digging its heels in. I'm not chasing anything here, but I'm keeping an eye on the 17,500-17,600 level for a potential re-entry point if we see a bit more consolidation or a minor pullback. It feels like the air is slowly coming out of the 'everything rally' balloon, making me more selective. Still bullish long-term on quality names, but the easy money days are definitely behind us for now. Speaking of which, the $CAD is showing 95.879 today, flat as a pancake, which says something about global indecision right now.
It's interesting how persistent that 'early pivot' narrative remains, despite consistent messaging from central banks. I'm curious if you see any particular sectors within the DAX that might feel this 'higher for longer' stance more acutely than others.