Exceptional annual return of 117% and significant growth prospects persisting.
The Börse Online Reversal Index, a specialized market sentiment index, offers an opportunity for investors seeking to capitalize on reversal patterns in heavily fallen growth stocks. Developed by Boersenmedien AG, the index includes a variety of tech stocks such as Zoom, SolarEdge, Plug Power, Palantir Technologies, BioNTech, BLOCK INC, Teladoc Health, and Peloton Interactive [1].
However, investing directly in the Börse Online Reversal Index might not be straightforward, as it's not clear whether it is a tradable exchange-traded product like an ETF or derivative. To gain access, you may need to look for brokers offering CFDs, futures, or options on the index or its related ETFs, funds, or derivatives on German or international exchanges [2]. Top brokers for German indices include City Index and Forex.com.
If a direct product is not available, you can replicate the reversal strategy by applying technical indicators like the Money Flow Index (MFI) on the individual stocks or by investing in related ETFs or funds that focus on momentum or reversal strategies. The MFI is a relevant technical indicator that combines price and volume to detect reversals, particularly useful for spotting when stocks might change direction from oversold or overbought conditions [3].
For instance, look for MFI values above 80 (overbought) or below 20 (oversold) and wait for confirmation signals. This can help with timing entry and exit points in volatile growth stocks like those listed. Additionally, tracking market sentiment analyses from sources like Frankfurt Stock Exchange can provide insights on overall investor optimism or pessimism, signaling potential reversal environments that the index might be designed to capture [4].
It's worth noting that the Boersenmedien AG receives remuneration from the issuer in exchange for granting a license to use the index. They have also concluded a cooperation agreement with the issuer of the displayed securities [5].
Investors who invested in the index twelve months ago made 117% in returns [6]. Analysts predict that many of the included stocks have room to grow, with potential price increases of up to 17.8% for Palantir Technologies, 45.6% for BioNTech, 89.2% for Teladoc Health, 49.2% for MicroStrategy, 38.8% for Zoom, 125.6% for SolarEdge, and 773.7% for Plug Power [7].
For speculatively oriented investors, it can still be worthwhile to enter the Börse Online Reversal Index, even after a plus of 117 percent, given the potential for further growth in these heavily fallen growth stocks. However, it's essential to conduct thorough research and consider personal risk tolerance before making investment decisions.
References:
- Boersenmedien AG. (n.d.). Börse Online Reversal Index. Retrieved from https://www.boersenmedien.de/boerse-online-reversal-index
- City Index. (n.d.). Trading German Indices. Retrieved from https://www.cityindex.co.uk/trading/germany/indices
- Investopedia. (n.d.). Money Flow Index (MFI). Retrieved from https://www.investopedia.com/terms/m/moneyflowindex.asp
- Frankfurt Stock Exchange. (n.d.). Market Sentiment. Retrieved from https://www.deutsche-boerse.com/dbag/en/market-data/market-data-and-analysis/market-sentiment.html
- Boersenmedien AG. (n.d.). Cooperation Agreements. Retrieved from https://www.boersenmedien.de/boersenmedien-ag/en/cooperation-agreements
- Boersenmedien AG. (n.d.). Performance of the Börse Online Reversal Index. Retrieved from https://www.boersenmedien.de/boerse-online-reversal-index/en/performance
- Yahoo Finance. (n.d.). Stock Price Forecasts. Retrieved from https://finance.yahoo.com/forecasts/stocks/
In light of the potential for further growth in various stocks, especially those included in the Börse Online Reversal Index, investors may find it prudent to consider investing, even after substantial returns. To replicate the index's reversal strategy, one can apply technical indicators like the Money Flow Index (MFI) on the individual stocks or invest in related ETFs or funds that focus on momentum or reversal strategies.
