The DAX rose for the 10th consecutive week, which also resulted in the index trading about 27% above its 200-day simple moving average. With the risk of a mean-reversion move lower of at least 5-10%, tactical investors looking to play the market from the long side only need to be patient a bit longer, says Serge Berger.

He says that as long as the ECB and the US Federal Reserve continue to differ on monetary policy, the DAX and other European stocks could see “some pretty good” rallies in the next three to five months.