2022/10/25 (096) Technical Analysis – NYSE-CAT & CBOT

I`m Not Superstitious But I Truly Believe In It:
Let It Go, As Long It Is Still Good, As Long, As It Is…
That`s Why We Remain Neutral On The Long Side This Week As Well!

Hope Is Back On US WallStreet Today For A More Dovish FED As Excepted What Drives Price Action Up

After a slow start to trading, the leading US index, the Dow Jones Industrial, dynamically continued its recent recovery on Tuesday. Yields fell noticeably on the bond market, and observers expressed hope that the US Federal Reserve could raise interest rates less than previously feared. At the closing bell, the Dow was up 1.07 percent to 31,836.74 points. On Friday and Monday it had already increased by almost four percent and had climbed to its highest level since mid-September. In addition, the quarterly reports of large US corporations such as Coca-Cola and General Motors were well received by investors. Other major selection indices such as the market-wide S&P 500 and the technology-heavy Nasdaq 100 fared even better than the Dow. The former increased by 1.63 percent to 3859.11 points and the latter increased even more by 2.10 percent to 11,669.99 points.

On the US bond market, yields on ten-year US paper fell significantly. “Equities are rising while interest rates are falling,” wrote Oanda analyst Edward Moya. In view of the recent weak economic data, the US Federal Reserve could slow down the pace of interest rate hikes. At the same time, the quarterly reports from UPS and General Motors did not thwart the generally optimistic prospects for companies in the USA, according to the market expert.

However, it should only get really exciting in the coming days, when tech giants like Amazon, Apple and Intel will let you look at the books. That evening, after the market closed, the software manufacturer Microsoft, the Google mother company Alphabet and the chip manufacturer Texas Instruments presented their results. In the case of the individual values with published quarterly figures, investors accessed the shares of Coca-Cola. The beverage group surprised positively with its results for the past quarter and raised its outlook for the financial year. The course rose by 2.4 percent. General Motors shares were also in demand, gaining 3.6 percent. The automaker had made strides in addressing its supply chain woes over the summer, significantly increasing sales and profits. After initial surcharges of more than four percent, the shares of the logistics group UPS closed 0.3 percent lower. An analyst pointed to weak profitability in the international freight business. The shares of the document manager Xerox got under the wheels, they collapsed by up to a quarter and slid to their lowest level for more than 13 years. Most recently, the loss was 14 percent. Third-quarter earnings were less than half what the market had been expecting.

Dollar Extends Downside Momentum

The dollar index weakened below the 111 mark, a level not seen in almost three weeks, as speculation that the Federal Reserve would slow the pace of interestrate hikes later this year boosted appetite for riskier bets while diminishing the US currency’s appeal. Data showing US private sector activity contracted for the fourth consecutive month in October supported such a stance, as it signaled that tighter financial conditions are already impacting the economy. This dollar’s weakness was seen across the board, with some of the most pronounced selling activity against the British pound as investors welcomed Rishi Sunak as the new UK prime minister.

The Fight For 30,000 Points In Rhe Dow Jones Stock Market, The Holding Of The 110 Points In The USD Index,
And Or The Meanwhile 4% In The 10year US Yields – That’s Seems What Determines The Price Action At The Moment! Or?

As I put it this week, in the 4 SetUps Technical Analysis, in the headline “I`m Not Superstitious But I Truly Believe In It: Let It Go, As Long It Is Still Good, As Long, As It Is… That`s Why We Remain Neutral On The Long Side This Week As Well!” And the current development also proves us right at the moment, with our neutral attitude. Even if it is admittedly highly speculative – and in the worst case, when we switch from the bull camp to the bear camp, and/or from the bear camp to the bull camp, in retrospect we only find ourselves with too many loss-making transactions!? But which strategy & tactic is perfect?! Therefore, we remain disciplined – and think, from day to day, from week to week, maximum, in these highly volatile times, as far as pice action is concerned.

It goes back and forth in the US stock market. The numbers are not great – and in the historical context, there are no reasons to enter the stock market in the medium term, let alone in the long term! However, as short-term speculative trader, as like in our 4XSetUps Trading Capability very much so, it`s a great trading market! Because in the last few weeks and months, apart from during the lockdown, due to the corona virus outbreak, has the mood regarding US Wall Street been worse? I don’t think so – but it’s not about the mood in New York, but rather about the emotional bullish/bearish reaction of the market participants, i.e. all of us who deal (in)directly with WallStreet. And our future expectations. And that all in an economic environment of the highest stagflation since the end of the Cold War, they are as bad as they have been for 40 years (the 1980s, to be precise). That´s why stay cautious about the US stock market! And only get in and out with a concrete competente long tactic, concrete competente short tactic, and/or concrete competente short/long tactic – in these historically very volatile price action times…Very Important Price Action Areas
For The Next Days, Weeks And/Or Months

34246 Target Price @ 4XSetUp

33031 01/24/2022 1st New Low this year 2022

32167 02/24/2022 2nd New Low this year 2022

31148 05/12/2022 3rd New Low this year 2022

30585 entry @ long 4XSetUp
if short 4XSetUp get stopped out

30585 05/20/2022 4th New Low this year 2022

30000 Stop Price @ 4XSetUp

29669 09/23/2022 last price @ friday closed

29639 06/21/2022 5th New Low this year 2022

29639 09/23/2022 Entry Price @ 4XSetUp

24675 Target Price @ 4XSetUp

Basically
i’m a constructive realistically optimistic wall street bull.
But, if i am not wrong, the us wallstreet sentiment is still far too positive in relative terms; because the economic data and/or much more worldwide political framework conditions are worse than they have been since the cold war.
So stay kosher – & trade only with entry/exits!US Equities Gain as Yields Fall, Earnings Beat

The blue-chip Dow rose more than 300 points on Tuesday, and the S&P 500 and Nasdaq added 1.7% and 2.0%, respectively, as investors welcomed a slew of upbeat earnings results while fading Treasury yields brought some respite to growth stocks. The US 10 Year yield lost almost 15bps as home prices declined for the second straight week. On the corporate side, General Motors rose almost 4% after the automaker reported better-than-expected third-quarter results while offering a positive outlook for the rest of the year. United Parcel Service also reported results that surprised investors on the upside and reaffirmed its full-year forecast. Microsoft and Google-parent Alphabet are due to release their earnings results today after the bell, while Apple, Meta, and Amazon.com report later in the week. Aside from a busy week for corporate America, investors will also be looking for economic data that could support the case for a slowdown in the pace of interest rate hikes.