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
Its Federal Reserve prime interest rate decision day, and every analyst is trying to be smarter than it is which could be the same as trying to set the world record on the two-inch high jump. With all the insane government interference in energy markets and business in general over the last nearly four years, the Fed (and its cronies inside Congress and the Treasury), its a wonder there is an economy left, other than for the will of the small business owner to survive. The Fed has managed over the last 15 years to yank interest rates below zero (after inflation and even before inflation) and then all of a sudden threaten bank solvency with a quick jaunt above 5% at the long end. Even your relative with the gambling addiction might not have considered trying such a scheme, but the Fed did. I ranted about the possibility of such a move 10 years ago, and even I cannot believe this really happened.
What is sad is that energy policy has created shortages which will run through the supply chain in manufacturing costs and that is a self-inflicted wound of “climate change” zealotry. That is not going away and alliances by saner-than-American governments are dealing with it, as that article I posted yesterday mentioned.
Not only have we damn near destroyed regional banks with bond portfolios degraded by rate hikes, our policies now are a threat to two trading partners, Japan and the PRC. In my own mind, I wonder if the insane resource policies of the EU and the US will accelerate de-dollarization.
China seems determined for a war against Taiwan and to create a commodity-or-metals backed currency for its BRICS partners. China’s economy is suffering and there are even more calamities in commercial real estate as it has in urban residential real estate. Xi has made his foreign minister and defense minister disappear, which makes one wonder if the PRC could be taking a more belligerent tone in world affairs. What the Fed does could quickly accelerate issues with the fiat U.S. Dollar as it struggles to maintain reserve currency status as long-time partners fight back against our ability to export inflation to the rest of the world with BRICS alliances as our printing presses whir along. If the presses stop (which loss of reserve currency status would cause), the American standard of living will likely collapse like a car dealership wiggly display as the power to the fan is shut off.
At any rate, I shall make no forecast, as Bloomberg has about rate decisions, I am just going to look at the charts. You can see in the subtitle that I have been listening to the “John Boy and Billy Big Show” for too many years, but it is a descriptive way to avoid a prediction.
It appears that any apprehension of Asian traders to be long MNQZ23 was dispelled as European traders began to buy the contract overnight. If MNQZ23 can remain above the 15416.75 line, then the rally beyond the swing high at 15441.25 can progress with a rally to 15493.75 or perhaps 15560.25 by Thursday. If not, it really could become a race back to the swing low at 15248.50 and beyond to 15197 or even 15129.50 by Thursday. The strength of buyers and sellers will determine that, and their minds will not be warped by having listened to John Boy and Billy, so their decisions alone will give us the result.
No one knows what will happen, which is why I will follow my trade plan to determine what to do next.
I scored only 4 NQ points short yesterday, as after I moved the trade to a breakeven stop with 21 NQ points profit, a seller spike ran through my trade and I covered it just to cover the expense of the trade. It did in fact, fall nicely after 1030 EDT, but like shall go on. I made a profit and protected equity, and another such opportunity will likely be available both in the morning and around 1400 EDT today.
That is all I have today. Enjoy your Wednesday, and go make some money whilte you are at it.
Today’s Economic Data Courtesy of Trading Economics dot com. Be sure to refresh the date at the top left.
Thanks for sharing, this is very helpful!!