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 world’s insanity continues on economic and political fronts this morning.
Israel is warning northern Gaza residents to evacuate as it plans to scourge what remains of Hamas militants. That expansion in military action threatens to widen the war in the Middle East. U.S. Secretary of State Antony “nuclear war is no worse than climate change” Blinken is attempting to stop a further esclation of world conflict that might allow him to test that postulation of his.
In moves reminiscent of the double dose of inflation we saw in the 1970s, there is criticism of the Fed’s move to “let markets take the lead on interest rates”. I think some of that has merit as Rick Santelli discussed in a video I posted a couple of days ago. PPI and CPI has shown that inflation is not yet tamed, and, at least in my view from the ground, the food and energy portions of inflation have not yet fully peaked, as government intervention in these markets continue to pressure wholesale and retail prices.
In China, deflation seems to be on the menu once again as consumer demand continues to be weak. In other news from that region, it appears that ARM China staff have pulled away from that company’s management to form a Chinese government-backed chip making firm. That move makes investors and foreign CEOs with Chinese corporate divisions shiver and lawyers potentially salivate over claims against this firm for cratering the IPO.
In a bizarre outcome of the world’s most prolific 5G rollout, it appears South Korean consumers are not adopting the new mobile phone bandwidth with great enthusiasm. In the USA, where airline pilots are concerned over interference with flight data and controls and consumer fears over health concerns, will this be the ultimate fate of 5G here? We will have to watch. I have symmetrical low-priced 5Gb/s service, but apparently zoning is keeping it from my house. If I get that, I will not care about 5G.
Let’s just kick that aside and look at the charts.
Asian tried to hold MNQZ23 price levels above the 15316.75 VWAP line, but as Europe opened, sellers began to get the upper hand. If MNQZ23 can rally above 15316.75, it could fairly quickly regain the swing high at 15469.50 and rally back to 15538.25 and 15625 by Monday, if buyers become aggressive. If not, MNQZ23 will likely slump back to 15216.25 beyond that to 15147.25 and 15059.75 if sellers become aggressive.
With Friday being a day that traders square positions for the coming week, prices might not hit these extremes, but as long as the gaps in commercial holdings above and below current price ranges remain wide, anything is possible. We will have to see if consumer sentiment will drive the action, but I prefer to watch price action and to stick with my trade plan, regardless of what happens.
I picked up 25 NQ points long per contract yesterday on the opening burts of volume, but I was not around to capture the selloff, as I was working on other business.
That is all for today. I hope you have a pleasant and productive Friday and a relaxing weekend!
Today’s Economic Data Courtesy of Trading Economics dot com. Be sure to refresh the date at the top left.
