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 Joe Biden traipses to Japan, Congress continues to sweat over the coming debt ceiling and the Fed and the Treasury cry crocodile tears over their cash balances. Just like Walter White’s meth addicts, they cry about not having enough cash to last until June 15, the so-called X-date for default. Why were they not worried about all this as the government destroyed small business via lockdown and addicted the public, now burdened by the inflation of all the money to pay people to stay home during the “covidiocy”? Well, the Walter Whites of the Uniparty cannot be bothered with that. They just proclaim “let them eat bugs” as their bills skyrocket to insane levels on Main Street USA.
One can best see the dilemma of the profligate government spending with this chart from the Visual Capitalist:
Despite this insanity of epic, potential republic-destroying fiscal insanity, these markets continue to rally. The balance of traders seems to believe beyond belief that the free money policies of the past will continue unless, of course, they don’t. Regardless of that condition, the game of “chicken” between the Legislative and Executive Branches of the Federal government continues unabated. The folks on the street will simply have to “live with it” in the Federal government’s eyes.
Let’s just focus on the charts.
If MNQM23 rallies above 13689.25, then it is an easy trip back to the old high of 13677, and 13732 and 13802 are possible by Friday assuming buyers continue to push prices up.
If not, then MNQM23 likely corrects at least back to major price support around 13552, and if sellers continue to dominate, it is possible that a quick trip back to 13475 is possible, and if the mass of VWAP lines can be breached below 13453.25, then even 13422 and 13422 and 13355 are possible by Friday.
Things look bullish at the moment as Europe seems to want to go higher, but as the Federal clown car drives down Pennsylvania Avenue, ANYTHING can happen. As the default deadline approaches, things could get wacky. That is why stop-loss targets in either direction must be used and enforced. We will begin to see the answers unfold as the next couple of days progress.
I picked up 21 NQ points on the long side yesterday, but I quickly took the profits, shifted gears, and move on to other business. If nothing fits my trade plan, nothing will be traded. I am still collaring my trading in the 15-minute chart universe to what hourly data indicates since VXN has turned down a bit.
Protecting capital is job 1, trading profitably and scaling are second. Do job 1 and the other jobs take care of themselves.
More will come soon. Have a pleasant, profitable, and effective Thursday!
Today’s Economic Data Courtesy of Trading Economics dot com. Be sure to refresh the date at the top left.
