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
I could write a book here today on what is happening potentially to earnings in the US and the concerns over deposits in European and U.S. banks and investment houses, but I do not have the time at the moment. You can get a feel for it from this Bloomberg article.
I think the thing to take away from this is that Asian and European traders are selling (and buying) to hedge against or work with negative news, and the net selling hit bottom in MNQM23 in the 0400 EDT hour and seems to have held the line at a new low around 12967.50.
As a result of that, the hourly chart you see there has a very slight tint of “lower highs and lower lows” that gives a bearish look to this market. As I said yesterday, this week’s trading is just a preamble of potential volatility surrounding next week’s Fed Funds rate decision and unemployment data. With tensions surrounding regional U.S. banks and earnings questions, there will be internecine craziness, and as shorter-term traders, risk management is more important as well as target setting for profits. You have to think like sardines and anchovies in the shark tank. You may have to accept smaller profits as prices shift to keep capital dry for bigger smoother price moves.
If MNQN23 can rise through the increasing number of hourly VWAP lines between 13055 and 13077.50, it can probably get to 13095.25 and 13130, perhaps even reaching 13168.50 and beyond by tomorrow.
If not, it is a short trip back to 12967.50, with 12940.25 not out of the question today and perhaps 12905.50 by tomorrow. You can look at the very faint dotted white line that reveals a potential bearish AB=CD pattern that ends right around 12095.50.
I am agnostic again as to direction, I just look for expansion opportunities in either direction to profit from. Yesterday on three trades without getting the boot from a stop loss, I picked up 17 NQ points net long in the morning session and went on with my day. Shifts in volume were dramatic at times yesterday. In acknowledgment of that, if trades do not develop rather quickly, I will tend to move to breakeven just to protect equity, knowing that, based on experience between 7 and 8 out of 10 expansions work. I can scale any net positive trading result, as over time, I will pick up large chunks of profit on certain days. Not losing money is key to winning. Risk management is the key element of that, and working my trade plan is the other key to success.
That is all for now. More will come soon.
Today’s Economic Data Courtesy of Trading Economics dot com. Be sure to refresh the date at the top left.
Rode it down all day. Hedged but doubled short here and there to help cover hedge. Lucky, went fishing before the , close and saved $ from the melt up. Some days are good…