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
Having returned from a business conference, I can see that the world really hasn’t changed much, even though volatility has been an issue.
America sees a new battlefront to take on under the current President, while our ability to fight it might just be the least it has ever been on a global stage, as this CSIS document shows (courtesy The Real Fly on Twitter):
Forgive the language on this post, but the U.S. seems to be running into a tinderbox that could escalate rapidly in very bad ways. Hopefully sane minds will consider diplomacy over potential mass extinction.
Consumers still suffer under the perils of inflation. All this happens, and as you plan your retirement, the 60/40 401(K) may no longer be your best friend.
Bill Gross worries about corporate bond yields as I do, as well as the spreads between large cap tech stocks and the Russell 2000, which are quite extreme. Rate tightening by banks would ultimately force a recession if that continues.
As the PRC turns Hong Kong into another arm of it’s police state, corporations are deciding its not such a peachy place any longer. The PRC’s real estate and debt crisis is even making Chairman Xi worry about it’s currency and about an economic slowdown. Seemingly every nation on earth now has compromised currency.
There are all kind of issues to worry about here and around the globe, but let’s go look at the charts.
The MNQU23 counter-trend rally that began on Friday, seemed to run out of gas overnight as Asia and Europe sold this contract off. There is so much news on all fronts that traders are cautious as to future events.
If MNQU23 can rally above 14769.50, it has a decent chance to regain 14861.75 and if the rally is strong, to even to 14950, the previous swing high. Its hard to know if in fact it could rally to 15016.50 or even 15101 by Thursday, the bipolar nature of this market makes anything possible.
If that does not happen, however, it is a pretty short trip back to 14706.75 and beyond to 14639.25 or even 14555 by Thursday.
Volume was so squirrelly yesterday that I took two shots at being long and ended up using my allotted 10 points NQ loss and I left the building. We will see what happens today. We will probably see the fireworks later in the week with durable goods orders and PCE data perhaps forcing institutions and traders to make decisions on MNQZ23 positions.
That is all for now. Have a wonderful Wednesday everyone. Be happy, be profitable, and enjoy the day.
Today’s Economic Data Courtesy of Trading Economics dot com. Be sure to refresh the date at the top left.
