December to Remember

Well, this is not a Lexus add, just quick few thoughts on what's going on in the markets, or rather a certain theme that bothers me about them. I'm just worried about all those kids in Germany trading stocks who instead of St. Nicholas will host a terrible Krampus this Christmas. You can look it up but in a true german tradition of brothers Grimm variety Grinch is a harmless, warm fellow compared to Krampus.
Going back to the markets. DAX is following its pattern of head and shoulders top that was finally retested this week and failed in a spectacular fashion, pulling down all the other markets with it.

What bothers me with that, is that there is no news about Germany, while clearly that is what's bringing the markets down now, not China as the usual market commentators are getting excited about. So if there is no news now, there is still lots of positioning to unwind, and DAX may exceed the target and end up around 8000 instead of the H&S target of 9700. That would be 41% drop in par with the initial 1929 DOW decline. If that would come to fruition, the Grinch will make the visit here as well. Now, if you go back to my previous post, you will see why it bothers me a lot.