The heavily-shorted German DAX has squeezed out the shorts. The index rose another 0.7% today and has just hit an all-time high at 16,531.

It's up an incredible 12.5% since October 26 in a one-way move.

DAX daily chart
DAX daily

The rally breaks the previous record high set in July.

Zooming out, this index has struggled at these levels since 2021 but with the ECB shifting to an easing bias and the energy crisis continuing to fade (TTF is at $38 today), the deep worry about Germany may prove to be an opportunity. However if that's the case, there are many other beaten down equity indexes globally that also offer compelling value.

monthly dax
DAX monthly