2022/04/26 (033) Column

Another ugly bloodbath for us stock market on while tuesdays trading session!
China stocks sink to new 2 year lows before european & us trading today,
while USD Index was back above 102 points first time since march `20,
and the bulls drove the oil crude market price back up 100 USD.


Led by very weak technology stocks, the US stock markets slipped significantly into the red on Tuesday. The renewed sell-off was justified, among other things, by the nervousness of investors before the quarterly figures of some of the world’s largest technology groups were due to be published after the stock market closed. Persistent fears of inflation, the rigid Covid-19 policy in China and the ongoing war in Ukraine also had a negative impact.

The leading index Dow Jones Industrial accelerated its descent again shortly before the close of trading and closed with a minus of 2.38 percent at 33,240.18 points. That was the lowest level since mid-March. The market-wide S&P 500 lost 2.81 percent to 4175.20 points. The tech-heavy Nasdaq 100 plummeted to its lowest level since May 2021, ultimately falling 3.87 percent to 13,009.71 points.

China Stocks Sink to 2-Year Lows

The Shanghai Composite fell 1.4% to close at 2,886 while the Shenzhen Component lost 1.7% to 10,207 on Tuesday, hitting their lowest in about 2 years, as authorities in Beijing expanded virus testing to most of the city, raising concerns about a Shanghai-style lockdown in the capital. Investors also shrugged off the latest policy support pledge from China’s central bank, which said it will boost monetary support for the nation’s Covid-afflicted economy. The central bank also said it noticed recent “fluctuations” in the country’s stock markets, which it said were mostly caused by investor sentiment. Growth-oriented technology and new energy firms led the decline, with sharp losses from Luxshare Precision (-2.9%), Tianjin Zhonghua (-4.3%), San’an Optoelectronics (-5%), Contemporary Amper (-3.4%), Sungrow Power (-2.2%) and Eve Energy (-4.3%). Resource-related stocks also slumped on weaker commodity prices, including CNOOC Ltd (-4.7%) and Zijin Mining (-3.6%).

Dollar Index Hits 102

The dollar index broke above the 102 mark for the first time since March 2020, buoyed by expectations of faster Federal Reserve policy tightening, while fears about the economic impact of China’s Covid-19 lockdowns boosted the dollar’s safe-haven appeal. Fed Chair Jerome Powell clarified last week that the central bank remains committed to taming inflation, currently at 40-year highs, while opening the door for a 50bps interest rate hike in May. Investors were also monitoring a worsening COVID-19 situation in China after authorities in Beijing expanded virus testing to most of the city, raising concerns about a lockdown of the capital. The most pronounced buying activity was against the pound, which tumbled to levels not seen since June 2020 against the greenback.

WTI Crude Rebounds Above $100

WTI crude futures rose to above $100 per barrel in volatile trading on Tuesday, having fallen to as low as $97 earlier in the day and rebounding from a 5% loss in the past 2 sessions, as investors reassessed the impact of China’s worsening Covid situation on the outlook for global demand. China’s central bank on Tuesday pledged to increase support for the economy as authorities in Beijing expanded virus testing to most of the city, raising concerns about a lockdown of the capital. Meanwhile, analysts argued that the supply picture remains tight and bargain hunters appeared to be taking advantage of sharp falls in oil prices. The risk that the EU may decide to join the US and UK in banning Russian crude imports also loomed over the markets, as the war in Ukraine rages on. European buyers declined to purchase millions of barrels of Urals crude from Rosneft PJSC, while Asian oil refiners shunned Russia’s Sokol from the Far East due to sanctions on a tanker company that ships the cargoes.DEVISE 2 DAY Another 48h – Where I Was Wrong, Where I Was Right

About APPLE i am basicly still bullish above 150 USD – and have also some own cfd long contracts. That`s why (in the 1st D2D Edition) i started with this trading capability (entry 169 USD, stop 150 USD & target 230 USD). How ever, about the USD i realized on 14th Feb.`22, that the possibility for bulls, in the USD Index (entry 96 points, stop 88 points & target 104 points) was given. The only short trading capability, but a big one, and the only one where i dare to speak out, i found in TESLA, on 21st Feb. `22 (entry 855 USD, stop 1.200 USD & target 430 USD). Also, about the UK Oil (entry 93 USD, stop 88 USD % target 130 USD), on 15th Feb.`22. And because of the outbreak of war, UK Oil already reached the target price of USD 130 on March 7th. That`s why 2 days later on 9th March `22, I formulated a new trading capability (entry 112 USD, stop 100 USD & target 130 USD). And perceive the USD 100 mark as a stop price area – an exit price.

FACEBOOK (entry 208 USD & stop 160 USD), on 17th March `22, was previously an expensice trading capability until now. As, unfortunately, does MICROSOFT also until now, since 7th March `22 (entry 285 USD & stop 240 USD). But at least the NASDAQ 100 short trading capabilty, from 23rd February `22 (entry 14.500 points, stop 15.750 points & 12.000 points) is in the money, until now…