2022/11/02 (102) Technical Analysis – XETR-ADS & CBOT

As Titled Last Week
Let It Go, As Long It Is Still Good…
That`s Why We Remain Neutral This Week Again!

After First Euphoria While Today`s Trading Session The WallStreet Spends Time In An Hangover

On Wednesday, after the Fed interest rate decision, prices on the US stock market went through a roller coaster ride. Initially, the indices rose noticeably after it became known that the US Federal Reserve could raise its key interest rates less significantly than previously in December. However, Fed Chair Jerome Powell left no doubt that interest rate hikes would continue. It is “very premature” to think about pausing interest rate hikes, the central banker said. In the end, the prices then slid sharply again, so that the leading index Dow Jones Industrial went out of trading with a discount of 1.55 percent to 32,147.76 points.

The market-wide S&P 500 lost 2.50 percent to 3759.69 points. The Nasdaq 100, which is dominated by technology stocks, suffered even worse with minus 3.39 percent to 10,906.34 points. Apple, Microsoft, Salesforce and Amazon posted price losses of between three and a half and more than six percent. As expected, the Fed raised the key interest rate again by 0.75 percentage points. The background to the significant tightening is the very high inflation. There is still “some way” to go on interest rates and it will take time and patience to keep inflation down, Powell said.

At the top of the Dow, Boeing shares gained 2.8 percent, responding to statements from the US planemaker’s Investor Day. Accordingly, Boeing expects a free cash flow of ten billion dollars by the middle of the decade. Dupont will not buy electronic materials specialist Rogers Corporation after all. The company announced on Tuesday after the US stock market closed that it was unable to obtain the necessary approvals from all regulatory authorities in good time. The takeover for 5.2 billion US dollars was announced a year ago. Rogers shares fell more than 44 percent, while Dupont stocks rose 3.1 percent. After the travel boom in the summer, the apartment broker Airbnb dampened expectations for the final quarter. Revenues are expected to be a maximum of $1.9 billion, compared to $2.9 billion last year. That was not well received by investors, the share price fell by 13.4 percent. Estee Lauder’s shares reacted to the latest business development with a price discount of 8.1 percent. The cosmetics giant disappointed investors by lowering its targets for the second quarter. The shares of Advanced Micro Devices (AMD) lost comparatively little at 1.7 percent. The semiconductor group had forecast a certain strength in its data center business and had promised to be particularly sensitive to costs.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 last 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 sentiment 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…

We remain neutral, even if it reads boringly! But what should I write to you!? Anything incompetent that I’m not convinced of just so you can go long or short an exchange rate pair, commodity, stock market, or even an individual stock? No! There are enough other newsletters and brokers who also formulate numerous buy or sell recommendations for you free of charge, just so that you can trade. Without denouncing this to colleagues, I still think that a neutral stance should pay off the most this week as well. And that we shouldn’t lose all of our accumulated profits, to put it mildly, by next weekend. So that the DOW Future does not fall back down to more or less 30,500 points. And that’s at least something, in these crazy, incredibly volatile times on the stock market! Or?
US Stocks Fall Sharply After Fed

Wall Street failed to hold the initial upside momentum and turned sharply lower as investors’ bets that the Fed will cool down the pace of rate increases fell apart after the Federal Reserve press conference. Shortly before the closing bell, the tech-heavy Nasdaq was down 2.8%, the S&P 500 declined 2.1% and the Dow shed more than 400 points. The US central bank set the target federal funds rate between 3.75% and 4.00%, the highest since early 2008 as expected and the initial statement pointed out that the central bank may be slowing down with the magnitude of rate hikes. At the same time, Fed Chair’s made it clear during the press conference that it is premature to talk about pausing rate increases. “We have some ground to cover with interest rates”, “there’s no sense that inflation is coming down.” and “the incoming data since our last meeting suggests ultimate level of interest rates will be higher” than once expected, Powell said.