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
This week somewhat reminds me of 1965 when cold war fears were at their height and a British invasion group Hedgehoppers Anonymus came up with the song “Good News Week”.
The Israel-Gaza conflict seems to be escalating regionally as Turkey threatens war against Israel and U.S. naval and ground military assets and personnel are assisting the ground movements in Israel while simultaneously funding Hamas and Iran. Political turmoil has reached a fever pitch in Israel as well. The world seems to be approaching global conflict as political lunatics seeks to make money from an ultimate nuclear confrontation.
Americans continue to spend like there is no tomorrow and there might not be one if their savings are tapped out. The article references “jobs everywhere”, but job openings are declining rapidly, and many of those job openings are being taken by people who already have one or two jobs already. Wealth in term of housing value is also declining at rates not seen since the Great Recession. Fiscal expenditures hit new lows, and if the economy falters, the printing presses will run again, prices will rise, and that consumer spending may indeed dry up.
For financial assets, Morgan Stanley sees the idea of a Q4 2023 rally as a fading prospect. There could be a new commodity supercycle in place, as real asset prices have hit lows not seen since 1925 in aggregate. There is the possibility that commodities could indeed outperform financial assets over the coming years as potential global recessions occur, but no one can know for certain.
We are in a real mess, but I will discuss that further at another time, lets look at the charts.
If MNQZ23 can rally above the 14310.25 VWAP line, it has a decent shot at taking out the swing high at 14384.75 and beyond to 14432.50 and 14493 by Tuesday. If that doesn’t happen, there is support between 1amd 14318 and 14310.25, and further support at 14247 and 14239. Failing that, however, it is possible that the swing low of 14209.50 could be taken out and target lows of 14162 and 14191.25 are possible by Tuesday.
We will get both the Fed decision on interest rates and inflation data this week, so anything could happen.
I picked up another 16 NQ points long per contract on Friday. I will simply look for the best opportunities I can and be prepared to take action if the trade plan allows.
That is all for now. Have a productive, profitable and happy Monday! Thank you for supporting this Substack.
Today’s Economic Data Courtesy of Trading Economics dot com. Be sure to refresh the date at the top left.
