2022/11/03 (103) Technical Analysis – XETR-AIR & CBOT

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

More Losses Today

On the US stock market, investors are still feeling the disappointment after the US Federal Reserve’s latest interest rate signals. The leading index Dow Jones Industrial lost another 0.46 percent on Thursday to 32,001.25 points. The market-wide S&P 500 fell 1.06 percent to 3719.89 points. The technology-heavy Nasdaq 100 was also unable to recover from the particularly significant losses of the previous day and slipped 1.98 percent to 10,690.60 points. It is thus approaching its low for the year from mid-October again. Apple shares lost 4.2 percent on Thursday. In the middle of the week, the US stock exchanges had suffered greatly from the Fed’s statements. As expected, the monetary authorities raised the key interest rate again by 0.75 percentage points. Investors only breathed a sigh of relief that the key interest rates might soon rise less sharply. The prospect of an unforeseeable end to interest rate hikes weighed more heavily.

Fed boss Jerome Powell has taken the wind out of the sails of the “hopeful rally” on the international stock markets, the authors of the Fuchs-Börsenbriefe wrote in their current issue. Stocks of highly valued technology firms and heavily indebted companies remained vulnerable to falls. With the rate hikes, the Fed is trying to get the very high inflation under control, which is proving to be a tough task in view of the continuing robust state of the US labor market. Particular attention is now being paid to the US government’s job market report for October, which is due out on Friday.

The chip group Qualcomm expects an even stronger downturn in the smartphone market than previously expected. The papers fell by 7.7 percent. JPMorgan analyst Samik Chatterjee spoke of cyclical challenges. Meanwhile, shares of ConocoPhillips rose to another record high, closing 5.8 percent higher. The oil major beat expectations with its adjusted quarterly profit and also announced an expansion of the ongoing share buyback program. At the top of the Dow, Boeing shares were up 6.3 percent on their strong previous day, when statements by the US aircraft manufacturer at an investor event had driven. Ebay rewarded investors with price gains of two percent. The online auction house proved resilient in a difficult market with a better-than-expected third quarter, analysts at Bank of America wrote. The troubled fitness equipment specialist Peloton fell short of expectations both with sales in the past quarter and with the sales outlook. Initially very high losses turned into gains of 8.2 percent at the end of trading. The shares of the sporting goods manufacturer Under Armor skyrocketed by 10.6 percent after quarterly figures. The shares of the industrial gas group Air Products and Chemicals also went up by 7.7 percent according to figures.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 Sink As Yields Climb

Major US stock indices fell further into negative territory Thursday as concerns of tighter monetary policy following yesterday’s Federal Reserve rate hike prevailed, despite weaker-than-expected economic data. The Dow Jones gave up slight early gains to drop 150 points, while the S&P 500 and the Nasdaq fell 1.2% and 1.9%, respectively. In October, US service providers expanded at the slowest pace since May 2020 amid slowed growth for new orders and production. In the meantime, rising Treasury yields pressured policy-sensitive growth stocks and the tech sector to underperform. Yesterday, the Federal Reserve unsurprisingly raised interest rates by 75bps, and fed funds futures priced a terminal rate above 5% after Fed Chair Jerome Powell signaled that rate hikes could be slower but higher than previously expected. Now, all eyes turn to October non-farm payrolls and unemployment rate data due on Friday for more clues on future interest rate hikes.