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
The early selloff in MNQZ23 yesterday somehow held around 14747.50 and rebounded, but the market and economic environment still sits on pins and needles. Bloomberg seems to be cushioning retail and institutional investors and traders about the potential contraction in employment, and things are so bad in accounting now that even that field is contracting (I could write a book about that subject, but that is not for today’s discussion).
The other amazing revelation by the WSJ that monetarism is suddenly in vogue again. Again, unless you are just sleepwalking through life, you know that inflation IS INDEED a monetary phenomenon, and it was used in 2008 to float an economy on worthless money at insanely low “risk-free” rates, which further chased paper assets and already damaged real assets (real estate being the primary one), and created a massive asset bubble that we are dealing with today. It allowed institutions to get money cheaply to place into equity markets and real estate markets, and turned both markets into casinos once again.
When will that end? It will end when other nations will not invest money in U.S. government debt, meaning we cannot print our way into a false sense of wealth while exporting our inflation through the purchase of our debt. That day is coming as BRICS nations decide to choose a commodity-backed currency to compete with and replace the U.S. Dollar. If we lose world reserve currency status, our standard of living will collapse rather quickly. If we had a stable asset backed currency not manipulated by Congressional and Federal Reserve manipulation, we could end these insane and severe boom-bust cycles, but I am going to stop here and move to the charts. I was about to have a “Don’t Get Me Started” moment.
Let’s get to the charts.
If MNQZ23 can rally beyond the swing high at 14806.75 and beyond that 10909 VWAP line, it has a very good probability of rallying to 14958.50 and perhaps even 15024.50 by Monday, if not, there is a chance that the cluster of three VWAP lines around 14677.75 and 14769.50 might hold, but failing that, it could be quick trip back to 14716, and beyond that to 14664 and even 14598 by Monday.
I have no idea what impact employment data will have today, but you will simply have to adjust your targets based on your trade plan.
I picked up 10 NQ points per contract short yesterday, but got booted on the second attempt at going short at breakeven. I will see what happens today before taking a trade and see if I can catch a nice extended move to a Fibonacci target.
That is it for me today. I will do my best to write 3C of “Setting Up The Trade” though it may be Sunday before I do it. Thanks again for supporting this Substack blog and have a happy, productive, and profitable Friday. Have a pleasant weekend too!
Today’s Economic Data Courtesy of Trading Economics dot com. Be sure to refresh the date at the top left.
