Is it time for a rain check on the DAX as German elections loom?

Last week the DAX continued to set fresh records and on Thursday that saw the index set a new all time high, at 22,624.57. It was unable to top that record on Friday, when it peaked at 22,609. The index later dropped back towards the weekly close, but resisted a fall below 22,450 and later closed, 98 points lower on the day, at 22,513. The stunning performance of the DAX so far this year has seen the index rise more than 14% from the low point to the high point seen last week. However, perhaps we should not overlook the fact that the Germans go to the polls in less than a week from now, on Sunday February 23. Given the records set last week, it seems the markets have almost completely overlooked that significant political risk event. Perhaps this week it might kick in, with a degree of profit-taking? We shall have to see on that over the coming days. Overnight the DAX futures have have not strayed far form the close on Friday. The DAX is currently priced to reopen around 22,525