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
Inflation seems now to be catching the eye of analysts as the reality of higher rates sets into the mind of the hedge fund manager, even though it has been on the mind of the consumer and man/woman on the street since 2021. The Europeans are really feeling it and at the American consumer level, the pain is real and in the near-term is increasing as credit card defaults are climbing rapidly. The cost of borrowing is deadly now as the cost of a mortgage has basically doubled in the last two years (I will search Substack for corroborative article, as within the last two hours, MSN scrubbed the article I sourced. It disappeared, replaced with a blank screen.) and the insanity of ZIRP (zero interest rate policy) had to end as inflation crept into every asset class and commodity, like food and energy.
What is at risk at the moment is that raw materials that flow through the entire product supply chain are surging, like oil, for instance. As these costs remain sticky, and government dictates force consumers to purchase things they cannot afford, like electrically-powered vehicles, the basic structure of the American standard of living and employment is being challenged. Labor will become an issue also as population growth rates decline.
We will get a glimpse of how pricing affects all of this later in the week. It is a very interesting time in the USA’s and the world’s economy now.
Let’s look at the charts.
Depending on market sentiment, MNQZ23 could recover quickly or sink even lower, as the gaps between commercial holdings at these price levels are quite large. If MNQZ23 can rally above 14861.75 and rise with sufficient buyers’ volume beyond 14913.75 (I quoted the exact line as I hurried to finish the chart), then it has a shot at retesting the hourly swing high at 14956, and could even break out back to 14999.75 and even 15055.25 by Wednesday. if not, the selloff could continue if sellers become aggressive, and the swing low at 14795.25 could get blown out, and target lows of 14751.50 and 14696 are possible by Wednesday.
I got smacked in a volume surge after the open and took at 21 NQ point loss per contract on the short side yesterday. The last four or five days have been bumpy, but I will get back in the saddle and trade again today assuming something shows up that matches the trade plan.
Have a pleasant, productive, and profitable Tuesday everyone!
Today’s Economic Data Courtesy of Trading Economics dot com. Be sure to refresh the date at the top left.
