Price, Price Spread, Lagged Price/Volume Spread, and Binary Price/Volume Indicator
Price and Total Volume With 50-period Moving Volume Average
Fibonacci Price Scale With Targets
Quick note: My trading platform somehow decided to eliminate the latest workspace for the new contract (MNQH24) and with it, wiped out all the VWAP lines I constructed for trading. I will restore those over the weekend as I have time. Fortunately, we are on relatively new high ground on the recent breakout, and there is blue sky in terms of price potential in either direction, given the dearth of commercial holdings outside of the current price ranges. I will restore those lines shortly.
This will be an abbreviated session as my platform decided to update itself without my permission, thus forcing a delay in chart creation and content development.
One thing is clear, however. The Fed has decided to pause rate hikes and perhaps create three or four cuts next year and has declared the free money (after inflation is removed) stock market casino open for business. Yesterday’s announcement was exciting for traders and institutions, but it still leaves the issues of funding massive deficits, the precariousness of bank assets, and the entire issue of asset bubbles to be reckoned with.
The pundits who still think a “soft landing” is possible must understand that that prospect has never happened, as is discussed in this Wall Street Journal article. I think their analysis is a bit flawed. The flaw is that with the creation of asset bubbles via a decade of insanely if not criminally low interest rates, the economy “plane” described in the video for this article is landing not on a flat runway, but instead trying to land the plane on the upslope side of a steep hill. That side of the hill is represented by the high prices that a great segment of our citizens cannot afford, from rent to food.
There are tons of issues that I could write a book about, but as I mentioned yesterday, America’s export of inflation to other economies ( as discussed in this article ) is going to end shortly as this article describes. Nations that scrapped their currency debt for ours from the 1970s until today only to see their currencies decimated as our interest rates rose or remain elevated now understand the precariousness of our currency and insolvency and are beginning to align with BRICS nations as they figure out a way to build an asset-backed currency not debauched by fiat systems of trade and payment. Debt is out of control at the Federal level, and despite what the Fed thinks, inflation is a monetary cancer and not caused by the economy alone. One cannot escape that as time passes. The United States needs to deal with this issue and deal with it quickly. No one and no government can spend its way to prosperity. Sadly I have run out of time to write, but a taste of the Fed’s yield curve issues are discussed here. If I have time, later on, I can elaborate. Everyone needs to understand why the Fed is approaching the “doom loop” as interest payments rise and the ability to sell bonds decreases as U.S. Treasuries lose their status as “risk-free” investments. BRICS nations will increasingly have a say in how safe U.S. sovereign debt is, and the U.S.A. may not have anything to say about it.
Let’s go to the charts.
If MNQH24 can remain above 16605.75, it should, with buyers’ assistance, be able to run past 16885.50 to perhaps 16969.75 and even 17076.75 by Friday. If not, and sellers put pressure on MNQH24, it could easily slip back to 16605.75 given the euphoria of the rate pause announcements, back to the swing low at 16576 and beyond to 16491.75 and even 16384.75 by Friday. With blue skies above and below these current price ranges, anything can happen.
I closed 14 NQ points long profits per contract on the breakout that occurred at the Fed rate announcement, choosing not to take but the first 127.2% expansion as volume around these announcements can be crazy. I cemented a profit on limit orders and I went about the affairs of the day. Somehow over time, I will figure out a way to video this stuff without interrupting the platform during trading. That would be instructive as to how to trade solid breakouts.
That is it for me today. I had more to say but the technical issues with the platform won. Have a happy, profitable, and goal-meeting Thursday!
Today’s Economic Data Courtesy of Trading Economics dot com. Be sure to refresh the date at the top left.
