Deutsche Bank AG

Here's one of many examples where short covering played a major role in launching this turd of a stock from the low 20s to the low 40s in roughly 15 trading days, for a modest 100%+ return. This remains a risky sector to be playing with, given the random but frequent policy/rule changes. Nonetheless, a pullback, as with the rest of the market, seems in order and the following charts of DB present some low risk entries and stops.
DB


DB - with fibs


There have been a lot of respectable traders talking about 666 representing an intermediate-term bottom given the level of bullishness over the last couple weeks.
While certainly possible, I have yet to see any fundamental reasons to support this with the exception of a blip in the housing numbers - likely due to 8k being given to every first time home buyer to help soak up the excess inventory - as part of the new stimulus. On a fundamental basis, I am more interested in the unemployment numbers which have shown no sign of improvement (quite the contrary); and the egregious amount of money being printed (debt) which leads to higher inflation which leads to an eventual increase in interest rates - bad for stocks. P/E ratios still seem high - SPY(15), IWM(18), QQQQ(23). Q1 earnings are around the corner as well and they won't be pretty but just remember, all they have to do is beat the pathetic expectations. Bottom line is whether or not the 'worst case scenario' has been fully baked into price yet. Nobody knows. So, long story short, this is yet another reason why fundamental analysis sucks. I will wait for the SPY to retrace to 75 and see if that level holds.