Daily 4XSetUps - Slight Consolidation Before NVDA Numbers Later
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2025/02/26 - 9th Calendar Week Daily 4XSetUps - Slight Consolidation Before NVDA Numbers Later “In the first two hours, the third doji seems to be manifesting itself! is this the calm before the storm? bear storm? or bullish again?”
The hope that the German economy will pick up again, out of the recession - after 6 quarters - as well as positively received company figures have put our German stock market DAXMDAXSDXK in a buying mood in the middle of the week, this Wednesday, February 26th, 2025. So that after the mixed start to the week, we are currently doing much better for our DAX DAX this afternoon with an increase of +1.76% to 22,804 points than many previously imagined - me too! The record high of 22,935 points reached last week is now getting closer again. Of course - things can't get any worse for our German economy! 6 quarters in a recession? Yes, we have experienced that here in Germany under the direction of a social democratic federal government with inclusive liberal and/or green politicians! Looking back, it was a disaster - which, admittedly, in 2021, I also strongly supported. Because I also thought that after 16 years of Merkel, a conservative Chancellor, a fresh left-wing liberal green wind would do us here in Germany not only economically but also socio-politically beneficial? But unfortunately the opposite was the case! More or less also the reason why a political era seems to be coming to an end in our so-called West. Which? The fantasy of a green economy under the guise of a free liberal democracy! Which simply doesn't pay off - for taxpayers and consumers! On the contrary - this policy has only cost us taxpayers and consumers. And in terms of foreign policy - in our Western, well-intentioned delusion of our political class - it even helped cause and trigger wars. So many - me too - assume that with a new, possibly conservative federal government with the social democrats on the side, things will only get better. Which is why traders and/or investors have been buying the DAX DAX for days, weeks, even months.
However, in the run-up to the opening on WallStreet DJIASP500NDX , the most important European stock markets also rose on Wednesday. Surprisingly good business figures from some large companies provided a tailwind. Added to this is the ongoing hope for an economic recovery in the largest economy in the Eurozone, our German economy, under the incoming federal government. And so the EuroStoxx 50 EUSTX50 also gained +1.16% to 5,511.23 points at midday. Outside the eurozone, the Swiss SMI SMI gained +0.33% to 12,068.04 points. While the British FTSE 100 UKX rose even more strongly with +0.62% to 8,722.71 points. Insurers were among the strongest sectors today. Munich Re's MUV2 business figures and dividend not only boosted the share price, but also the entire sector. The dividend plans of the largest reinsurer were particularly well received, as he proudly and/or rightly announced on BloombergTV this morning. The past of course speaks for itself. And so Swiss Re SREN also rose by almost three percent. "The European stock exchanges EUSTX50 - especially our Dax DAX - are currently playing in a league of their own and are increasingly detaching themselves from WallStreet DJIASP500NDX ," my friend cfd online broker analyst strutted this morning in a video conference when we discussed the price actions. And added, "We would first have to wait and see the numbers from Nvidia NVDA today - how the market will react to the numbers from the AI chip specialist Nvidia! NVDA Because in the past, Nvidia NVDA has always far exceeded expectations - this time only good numbers could cause disappointment," he added, somewhat embarrassed, with his eyes wide open. To which I have nothing more to add. That's true - because in such emotional cases, if the numbers are correct, an above-average emotional overreaction on the part of bulls and/or bears, traders and/or investors, can often be more significant than the numbers themselves.
“I saw pain as nature’s reminder that there is something important for me to learn.” Ray Dalio
45227 : 2025/01/31 - Annual High 2025 45176 : 2024/12/04 - Annual High 2024 43965 : 2024/11/06 - Trump Election Day High 43801 : 2025/02/07 - last price action 42416 : 2024/11/06 - Trump Election Day Low 41873 : 2024/10/31 - October 2024 Low 41791 : 2024/11/04 - November 2024 Low After 147 minutes of trading on WallStreet, today, Wednesday, February 26th, 2025, the Dow Jones Mini Future YM1! price action currently seems to be stabilizing somewhat, with +111 points and/or +0.23%. Slightly bullish? No - I don't want to go that far! Or maybe perhaps the calm before the storm? Because the Nvidia NVDA numbers tonight? Because in the SP500 SP500 alone, the weighting of the chip giant is an impressive +6%. Or am I reading far too much into Nvidia's NVDA price action? I don't know! But which attentive financial market participant doesn't do that today? Even! Be as it may, the overall picture of price action in the last few quarters definitely gives us hope about the price action of the Dow Jones Mini Future YM1! . Because the upward trend is intact! And should the market, i.e. the traders and/or investors, react positively to the figures? As well as the view? Then the price action should continue above the upward trend channel again for the time being! And that would be bullish again! Although not directly back to new all-time highs - but we still have enough time and space for that in the second quarter of 2025.
Have a good time - regardless of the price action! Aaron
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