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
As I said yesterday, the casino doors opened as the Federal Reserve held its prime interest rate position and projected at least 3 interest rate cuts in 2024, and investors, traders, and institutions continued to jump into stocks of all kinds, including tech names. The very nearly free money (after inflation is removed) began again to flow into equities. At the same time yesterday, the ECB warned against declaring victory against inflation, as other nations have their unique price issues both current and future.
Jim Grant of the Grant’s Interest Rate Observer discussed the issue of inflation in terms of how it taxes workers. When added to the fact that rates have been held too low for too long, the malinvestment of cheap money leads to inflation. Malinvestment leads to higher prices for goods and services and unemployment when the malinvestment ultimately fails. In another video, Jim Grant discusses the stickiness of prices after inflation, and how it destroys standards of living over time.
China continues its economic woes, as the real estate market deflates and consumer confidence continues to be weak. And if you are wondering what the prospects are for future inflation, just look at what competitors are having to do to escape China’s nearly monopolistic control over rare earth metals used in everything from mobile phones to electric cars. If governments force consumers to buy these insanely high-priced products, that will likely crush wallets further. If free markets were allowed to flourish, we might be able to purchase much “greener” alternatives like hydrogen-powered cars. The mind boggles.
From the standpoint of world events, the whole world is in a mess, according to Richard Haass. He has some interesting insights regarding the projection of power by China and the USA, and how both nations now have similar problems to tackle. I will not discuss at this time how NATO and the USA seemed destined to start a world war with Russia, but the madness continues.
Regardless of the continued economic concerns, tech stocks continue to rally unabated by these concerns. Let’s take a look at the charts.
After the afternoon selloff, MNQH24 regained its footing and slowly rallied overnight EDT time. If MNQH24 can remain above the 16769.50 VWAP line, prices could rally above the swing high at 16877.25 and move beyond to 16945.25 and even 17031.25 by Monday. If sellers prevail and drive prices back through the wide bullish bars of yesterday afternoon, MNQH24 could fall back relatively quickly to the swing low at 16627.25 and back to 16559.25 and 16472.75. After a crazy week this week, traders could just square off positions, given that Christmas is almost here, and come back next week. A lot depends on who shows up to trade.
I took an 8 NQ point loss per contract yesterday, as volume became a bit crazy early in the session. We will see what happens today. If the volume is not pretty robust, I may just stand down and wait until Monday, but only time will tell.
That is all for me today! I will look at charts this weekend and post if I see something important. Have a happy, blessed, and profitable Friday.
Today’s Economic Data Courtesy of Trading Economics dot com. Be sure to refresh the date at the top left.
