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
CPI data comes out at 0830 EDT today, and supposedly will show slightly lower levels on a month-to-month basis (0.2%). If you or I were to head to the local market, we would all know that number is incredibly low, but again, we will just have to see how markets react to the data and how the U.S. Federal Reserve, the U.S. Treasury, and United States Congress will react to this. The one thing that is readily apparent is that the money printing and borrowing continues, and because inflation is a monetary phenomenon, the more money gets printed, the more wallets gets dented. I’m a poet and didn’t know it.
China now thinks the iPhone is a security threat and is going public with that concern. All that is happening while the price of iPhone 15s are rising against the backdrop of a tapped-out American consumer. Will this effect the QQQs and MNQZ23, only time will tell.
The other issue is the subtle arbitrage trade between treasury bonds and their futures contracts, which are reaching a peak again. The basis trade has in the past caused Treasury market and stock market volatility in the past. The casino is still open, even though the money may no longer be “free”.
Let’s deal with this information later and look at the charts, where market decisions are made.
Asia and Europe both idled MNQZ23 after yesterday’s selloff that gestated after I had to end my trading. If MNQZ23 can remain above the 15465.75 VWAP line and above the swing low of 15467, it has a chance to rally at least to an area of price resistance around 15541.25. If buyers can press prices above the 15572 VWAP line, the a rather quick rally could occur to drive prices to the swing high of 15615.75 and beyond to 15656.75. Perhaps if buyers can break through price resistance at 15683, MNQZ23 could rally to 15707 by Thursday.
If MNQZ23 cannot remain over 15465.75, then it is probably another quick trip to the downside to 15426.50 and even 15375 by Wednesday.
I have no way of predicting which way prices will turn. I will rely on my trade plan for that.
I picked up net 11 NQ points short yesterday, getting bounced for 19 on the first trade short, but picking up 30 to the downside the second time. The new entry method, which I will explain in “Setting Up The Trade”, helped to reduce overall risk and to keep me profitable.
We will see what happens today. Have a happy and profitable Wednesday all!
Today’s Economic Data Courtesy of Trading Economics dot com. Be sure to refresh the date at the top left.
