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
Fear and loathing are everywhere on the waterfront.
It was a light weekend for international news. A Russian coup attempt (determined or not), concerns by globalists (particularly in the USA, where the nuclear war hawks crave an outbreak) that a rebel force might control nuclear weapons and might use them. China backs Putin ( as one would expect given their BRICS agreements). The whole damned world looked like it was going to blow up.
Even though I think the “rebellion” might have been a trap set to smoke out military disaffection with the Ukraine conflict, we probably won’t know the answer to this for several days. Even though the mainstream press seems determined to show how Russia’s allies are pulling apart, it is still NATO that like looks like the bigger fool trying to provoke world war and not being able to pull it off. We will have to see. We will face our own little Ukraine situation in Cuba, once China builds a naval base in our backyard. It’s all insane.
On the economic front, as I mentioned in yesterday’s post, continued government stimulus provides the illusion of economic health. As I mentioned yesterday, how can central banks tighten rates and governments spend like lunatics and the latter NOT stop the former without ultimate bankruptcy? The mind boggles.
And in other news related to the end of economic freedom and possibly even personal mobility, the Swiss Bank introduces its own central bank digital currency. The EU really wants to lock down its economies on a behavioral basis.
Instead of worrying about this, let’s just look at the charts.
Asia looked to be buying MNQU23 overnight, but Europe sold off the contract back to nearly the hourly swing low levels before nibbling on long positions before the 0600 EDT hour. In spite of global and domestic insanity, these markets this week, with relatively little economic news until the PCE data on Friday, the summer doldrums post-July 4 may be setting in, only time will tell. The spreads on volume and price are generally negative, but support could be found this morning if buyers run in and rescue MNQU23 after 0930 EDT.
If MNQU23 can remain above 15084.75, it has a shot at rallying to 15111.50 and back perhaps if buyers press to 15238. It could also head to 15306.75 and 15394.50 by Tuesday, assuming that buyers are aggressive.
If not, it could be a quick trip back to 14984.75, and because of the relative lack of commercial holdings, fall right back to 14916 or perhaps back to 14828.25.
The least resistance for price in MNQU23 at the moment is to the downside, but there is so much going on domestically and abroad that virtually anything can happen. That is why I will focus only on solid breakout trades in either direction and if they don’t show up, given the new statistical technique I am using for entry, I simply will not trade, particularly in price chop.
I picked up 44 NQ points long in simulation on Friday and then moved on to other business. I will trade in real time and NOT in simulation today.
That is all for now. I hope you have a happy and productive week this week and a profitable Monday!
Today’s Economic Data Courtesy of Trading Economics dot com. Be sure to refresh the date at the top left.
