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 Target
Manic depression ( a much more expressive term than bipolar disorder) hit MNQM23 and other markets yesterday and continued fear and loathing of a U.S. Federal debt default, combined with excitement over Nvidia earnings ($NVDA) to nearly make a complete roundtrip from this week’s highs to this week’s lows and back again as Asia and Europe came back into session post-Chicago close.
The result was a combination of Crazy Train (Aii Aii Aii!) and AI (with NVDA) driving prices below projected lows and damn near blowing out the highs. This kind of insanity will continue until we know what course the US Dollar will take and whether or not Congress becomes fiscally responsible again. Enterprise valuations and rates of return mean nothing in a government-directed casino.
The only thing one can do for now is to hedge. Back to the charts.
The Fibonacci scale used in the targets chart is based on the previous upswing which has already been bested by this morning’s price action.
If MNQM23 can remain above 13899.25, then 13970 and even 14080 if buyers remain strong. Above that would be the 14359 VWAP level. That is possible by Friday perhaps.
If news drives sellers to bail out, then the next low might be the price structure around 13725.25, and if that is breached, a 13566.75 support low is the next target, followed by 13480.50 and 13370.75. All that is possible by Friday.
We have seen and will continue to see the insanity of yesterday in these markets while the criminals in Washington play with your money. I managed to pull out 10 NQ points short on what was at the time somewhat meager volume early on. I was working on other business as NVDA news hit, so I missed that shake-out.
I will continue to find trades in the 15-minute time horizon, but over time I will begin to exploit hourly timeframes as well, hoping that some measure of sanity will return in 2024 and markets will be better suited for swings one can hang onto. For now, I will trade only what makes sense in the 15-minute universe, and go on with other things as well.
That is all for now! Have a cash-flow-positive and attitude-positive Thursday!
Today’s Economic Data Courtesy of Trading Economics dot com. Be sure to refresh the date at the top left.
