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
Amid many conflicting economic indicators, the Fed continues to try to find ways to pressure rates down particularly by shifting the number of long-term and short-term bond auctions. Combined with an overabundance of shorts in the treasury bond markets, rates did indeed fall late last week, giving the “casino money” seekers room to be bullish.
Even with that news, Bloomberg does it’s own analysis on rates and determines (in my opinion correctly, something leftist economists do infrequently, as most all of the financial press has for over 15 years), that money DOES have a positive “risk-free” hurdle rate that must be overcome to make an investment worth attempting. I have been waiting for that admission since 2008, when ZIRP (zero interest rate policy) was all the rage.
The cost of everything goes up as prices and interest rates rise. China, India, Bangladesh and foreign manufacturers now understand what South Carolinians like me understood in 1980, they need a better return to pay for rising costs. The era of cheap goods from Asia may be at an end. Amazon private and white label product sellers take note.
In other quick notes, China is now shipping unemployed youth from cities to the rural areas, perhaps in a reboot of the Cultural Revolution, to “embrace hardship”. This will be interesting to watch. As China’s population ages and intransigent equivalents of American Gen-Zer’s and younger refuse to give up their devices (even though their used to monitor social credit), what they may embrace is the anger of many rural folks who dislike the CCP, which is quite common these days. This will be very interesting to watch as China takes on a potential war footing in the next few years.
Let’s drop all the news and look at the charts.
If MNQZ23 can remain above 15202.75, it should have an easy time rallying beyond 15228.50 and rallying to 15246.25 and 15269 by Tuesday. If not, then support exists around 15170, but failing that, MNQZ23 could fall back to the swing low at 15163 and pull back perhaps to 15145 and 15122.50 by Tuesday. On an hourly basis, MNQZ23 seems overbought, but there is more room above in terms of dearth of commercial interest. No one knows what will happen, which is why I will monitor price action with respect to my trade plan.
I got bounced for 9 NQ points loss for contract as I went long on Friday. Life continues on and I will saddle up again today to see how volume settles out.
That’s all for now. Have a fantastic Monday and a productive week as well!
Today’s Economic Data Courtesy of Trading Economics dot com. Be sure to refresh the date at the top left.
