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 woke up a tad early this morning and noticed that as Europe opened the rally that began in Asia ( I assume Asian traders covering shorts) had begun. What I did not quite expect, until I saw the news in Bloomberg, is that European traders are still reacting negatively to SVG and First Republic Bank’s collapsing, somehow fearing that the Federal Reserve, FDIC, and the US Treasury might not be so willing to protect every deposit, though that is what the FDIC is doing ( a bad idea in my view, but it is).
All this is happening as Goldman Sachs calls for traders to cover shorts for the inevitable “Fed pivot” to lower rates (ANOTHER really bad idea). What is needed is an end to the mindless printing of worthless money and drastic reductions in Federal spending, but our leaders seem intent on destroying the US economy while trying to “save us” from economic pain, only making the final outcome far worse than taking the pain now. In the next 2 to 5 years, we are talking about the loss of the U.S. Dollar’s strategic reserve currency status, and that could impoverish several future American generations. Want to talk about pain? THAT will be PAIN. The reason for that is the U.S. Dollar is effectively worthless now, and no nation will want to accept it as payment for goods and services. Remember the Russian Ruble in 1992?
What will happen? We will simply have to watch and see. I am going to look at the charts and plan a trade, trading what I see.
If MNQM23 can remain above 12043.50, then it is possible to regain Friday’s high of 12223.25, and if it exceeds a previous VWAP resistance at 12293.25, it can rally to 12304.25 and potentially 12407.50 in a couple of days.
If not, it could be a very short trip back to 11925.25, 11844, and 11741 in the next couple of days.
I cannot predict what will happen. All I can do is measure price momentum, volume, and trade trades in the proper direction at a breakout point, adjust my stop losses, and take the trade if the parameters match my trade plan. If not, I will stand down.
I was able to capture 33 NQ points per contract long before the selloffs began on Friday morning. We will see what happens today. Let us hope the profits continue.
Have a great trading day and a great Monday!
Today’s Economic Data Courtesy of Trading Economics dot com. Be sure to refresh the date at the top left.
