2023/01/22 (153) Column

Daily Central Bank 4 SetUps
Are A Sisyphean Task


Regardless of whether individual exchange rates are rising/falling, and/or their yield curve is becoming more expensive/cheaper, as well as the national stock markets, it is important to me that it is important to you that you adopt a daily routine. Train yourself to behave in a certain routine way. Like an athlete, certain behavioral patterns are trained for his sport on the sports field. You too should even train yourself to behave in a certain meaningful way if you want dealing with US WallStreet, with the financial market, especially with derivatives trading (CFD`s). And the best way to do this is by also integrating my DEVISE 2 DAY Info Service.

A Greek legend tells of Sisyphus, the king of Corinth.
Sisyphus angered the gods – and they came up with a very special punishment for him.
His job was to roll a huge boulder up a mountain. The stone was larger than Sisyphus and heavy. As Sisyphus rolled it up the mountain, the stone kept slipping out of his grasp and rolling all the way back down. So the king had to keep starting over to bring the boulder up the mountain from the bottom. Sisyphus never managed to get the stone to the top of the mountain – it kept slipping and rolling down it. The saying about the work of Sisyphus comes even from this old legend greek mythology. This means a job that is so extensive, complicated and difficult that it will never be finished – and where you always have to start from the beginning. Just like dealing with US WallStreet, with the financial market, especially with derivatives trading (CFD`s).

If you want quick money on the stock exchange, you usually fall flat on your face!
Okay, of course there might be a handful of fortune hunters; but then only if you add 1000 to it.
I’m assuming – still as a realistic optimistic market guy – that a maximum of a handful of my readers (i.e. 5 out of 1000 of my readers) have found rapid success on US WallStreet. Everyone else, like me, keeps busy, learns, trains, tries things out day in and day out; to get even better tomorrow. To make even better trading decisions (buy/sell or do nothing). And then hopefully with the help of my Central Bank 4XSetUps, Economic 4XSetUps, Financial Market 4XSetUps, Scenario 4XSetUps, and/or Technical Analysis XSetUps.

Central Bank 4XSetUps
Many factors have, more or less, an influence on the financial market price development of exchange rates, yields, commodity futures, stock market futures, and/or individual stocks. That’s why I always try to describe the whole picture in every DEVISE 2 DAY Edition. Although I definitely don’t want to stand up and write that I can do it. No, I’d rather get to the point of which central bankers said what? And what it means for us market guys? How indicators work? And what indicators are important? Banks Balance Sheet, Central Bank Balance Sheet, Foreign Bond Investment, Foreign Exchange Reserves, Interbank Rate, Loans To Private Sector, Money Supply M0, Money Supply M1, Money Supply M2, Private Debt To GDP, Repo Rate, and/or Secured OvernightFinancing Rate are for better or for worse the most important indicators! Don`t you think sp, also?! Isn`t it?!

How do they all for their own relate to the interest rate?
How will they individual develop in the future?
Will they influence the interest rate?
Will the key interest rate move in line with the indicator?
Will the key interest rate may be
develop in the opposite direction to the indicator?

These are unasked questions that I will also in this DEVISE 2 DAY Affiliate Financial Market Online Newspaper Edition try to answer competently for you, yes exactly for you, my dear loyal reader.

Does the poison of the current and/or rather expected key interest rate have a healing effect or not? Is the optimism or pessimism in business justified? Which financial market prices are currently in focus? What is (partly) decisive in context of the basic scenario, what drives price action? Which technical analysis seems useful?

Not only this question, but mainly, I try to answer you as competently as I can in every DEVISE 2 DAY Edition, including in this one today. Here’s to when the stone that was laboriously carried up, the Technical Analysis 4XSetUp, should roll down again in the coming days, weeks, months. Because in retrospect I was wrong with my entry price including target price & stop price. But what else should I do as a publisher, author, analyst and/or market guy? Right! Tomorrow, write another one for you; once again – as long as you continue to faithfully continue reading my DEVISE 2 DAY Affiliate Financial Market Online Newspaper.
growth rate, durable goods orders, the PCE price index, personal income and spending, and earnings reports. Also, flash PMI data for January will be published for the US, UK, Japan, and Euro Area countries. Investors will also follow BoC Interest Rate Decision, Germany IFO business climate and GFK consumer confidence, GDP growth rates for South Korea and the Philippines, and the inflation rate for Australia.

I opened today’s front page with a sentiment index. Because I still think the sentiment is way too negative; above all with regard to the monetary policy of the FED! So I’m currently still assuming a robust Dow Jones of over 33,000 points. And that’s because the reporting season starts this week. More on that in the daily Technical Analysis 4XSetUps – complementary to the DOW Future – on Wednesday and Thursday. Today there is the EUR/USD, tomorrow on Monday the DAX Future. And/Or also on Tuesday then the TESLA share.
DEVISE 2 DAY Another 48h
– Some Last News About Market Price Actions

European Stocks End Week On Positive Note
FTSE 100 Snaps 3-Day Slide, Still Posts Weekly Decline
Russian Shares Close Week Lower
Brent Crude Hovers Around $86
Gold Hovers Near 9-Month Highs

European Stocks End Week on Positive Note
European equity markets closed higher on Friday, recouping some losses from the previous session. The benchmark Stoxx 600 rose 0.4% on Friday and was little changed for the week. Domestically, the German DAX booked a 0.4% loss this week but added 0.7% on Friday. The sentiment was supported by optimism about China’s reopening ahead of the Lunar New Year holidays, easing inflation and expectations of a slower pace of central bank policy tightening. Still, Several European Central Bank policymakers pushed back against market bets that the central bank would deliver smaller rate hikes due to easing inflation. Also, disappointing US economic data and hawkish remarks from Federal Reserve officials this week stoked fears of a looming recession. On the macro front, British retail sales fell by 1% in December, the key Christmas month, missing market expectations of a 0.5% rise.

FTSE 100 Snaps 3-Day Slide, Still Posts Weekly Decline
Equities in London snapped three sessions of losses on Friday, with the benchmark FTSE 100 bouncing back to close around 7,770 points, driven by gains in technology and materials. 3i Group rallied almost 3% to lead the benchmark, while big miner Glencore was among the top performers, up over 2%. The FTSE 100 lost more than 1% this week.

Russian Shares Close Week Lower
The ruble-based MOEX Russia index closed marginally below the flatline at 2,167 on Friday, dropping for a fourth session and notching a 1.5% decline on the week as energy producers continued to underperform.

Brent Crude Hovers Around $86
Brent crude futures stabilized around $86 per barrel on Friday and are on track for a second consecutive weekly gain, supported by an improving demand outlook and persistent supply worries. The International Energy Agency said global oil consumption would reach a record daily average this year as top crude importer China opened its economy. At the same time, the IEA also warned that price cap sanctions on Russia could dent supply further. OPEC echoed a similar view in its monthly report released earlier this week, saying that demand for crude will rise by 2.22 million barrels per day (bpd), or 2.2%, lifted by higher Chinese consumption and a recovery in economic activity among advanced economies.

Gold Hovers Near 9-Month Highs
Gold held above $1,920 an ounce on Friday, hovering near its strongest levels in nine months on firm expectations that the US Federal Reserve will slow the pace of its interest rate hikes. The metal is also on track to gain for the fifth straight week. Meanwhile, a chorus of Fed officials reiterated their commitment to tighter policy this week, though weakening US data that fueled recession fears tempered rate hike concerns. Markets are currently expecting the US central bank to downshift to a smaller 25 basis point rate hike in February after delivering a 50 basis point increase in December. Elsewhere, consumer prices in the UK also fell for the second straight month in December, adding to further signs that inflationary pressures may have finally peaked in Western economies.DEVISE 2 DAY
Affiliate Financial Market Online Newspaper
– Where I Wrote Something Wrong And/Or Something Right

Johnson & Johnson, 3M and also GM on Tuesday before the opening – and Microsoft, Texas Instrument, after the closing bell. Boeing & AT&T on Wednesday before the closing bell – Tesla & IBM after the closing bell. Mastercard on Thursday, before the closing bell – Intel & Visa, after the closing bell. As is Chevron & American Express, on Friday before the closing bell, are the biggest names on US Wall Street for quarterly results, this 4th week of 2023. In the Technical Analysis 4 SetUps I will more or less address the results; EURUSD on Sunday, DAX Future on Monday, TESLA share on Tuesday, and/or the DOW Future on Wednesday & Thursday. These are the main zopics of this week.

I remain fundamentally optimistic about the DOW Future; but not without air pockets to use an image during a flight. The future level of the upcoming 1,2 and/or 2,3 rate hikes by the FED, as well as the quarterly figures on US WallStreet, may cause air pockets – on our bullish path towards 35,000 points, this year 2023.

I chose the DOW Future as our basic investment; as it is not as tech-heavy as NASDAQ. Because I think the party on NASDAQ might be over for the time being, maybe for years to come. Because the companies are simply historically too expensive! Therefore the DOW Future and/or also DAX Future. Just classic conservative blue chips from the USA and/or Germany – who run their operative business worldwide. I also have the TESLA as a long 4XSetUp, if you will, as a volatile high beta share. If I’m wrong about that the NASDAQ will not recovering. So that in terms of profitability, like in 2022, we are not lagging behind. Because I assume that the US dollar, in 2023, should be nominally cheaper, since the Fed has already done most of its homework in 2022. In contrast to the ECB, which is likely to face a rocky hard road in 2023. Therefore also in the EURUSD long, in addition to the DOW Future, the DAX Future, and or also the TESLA share.