Price, Price Spread, Lagged Price/Volume Spread, and Binary Price/Volume Indicator
Price and Total Volume With 50-period Moving Average of Volume
Fibonacci Price Scale With Targets
As traders and institutions seemingly await the next Fed move to officially declare any “Santa Claus” rally, it seems markets, and in particular MNQZ23 want to drift sideways between the major gaps in VWAP lines.
What was a bit alarming is the perilous drop in U.S. birthrates to very near zero, which is a bad place for a civil society to find itself, and which angers Malthusian zealots like Bill Gates, who is likely seeing similar trends in China. That will definitely have an effect on economic activity as 2100 approaches.
Amazon will now attempt to join the competition in primary healthcare with CVS and Walgreens via its acquisition of One Medical. I would assume it is another attempt to diversify profit-making activities away from data services. That will have to be watched. Margins are getting squeezed at CVS and Walgreens, so a new entrant of Amazon’s size could reshape that industry.
Softbank’s earnings were damaged by its investment in bankrupt WeWork, but poor management and a government-exacerbated pandemic destroyed that investment. Tech giants Microsoft and Google traded blows regarding search engine development in Google’s anti-trust trial. It will be interesting to watch developments in this trial, particularly with Google’s dominance in search capability and news dissemination.
In China, deflation could be the theme as it’s economy continues to struggle and consumer prices fall. On the international trade front, China is imposing its will with coast guard ships as it attempts to take full control of the waters in the South China Sea against the Philippines and the United States. China now has the largest navy on the planet, and it uses it speed and multiple maritime bases to extend its reach. This could set the stage for further activity as China eyes the retaking of Taiwan.
More on all of that later. Let’s look at the charts.
If MNQZ23 can rally beyond 15388.50, it could easily take out the swing high of 15417.75 and rally to 15453.50 and 15499 by Friday. If not, there is a lot of support around 15369.50 and 15316.75, but failing that, the swing low of 15288.50 could be breached, and target lows of 15250.75 and 15203.50 are possible by Friday. It does seem that this futures contract is drifting between key VWAP lines until buyers and sellers push it outside of the 15300s. Perhaps Fed Chairman Powell’s words will make a difference, but no one knows what will happen. It may even take inflation figures next week to drive the action. We will simply have to be patient and watch the trading action.
I picked up another 15 NQ points long per contract yesterday, and then went on to other business. I am waiting for second confirmations of breakouts before placing the trades, and that helps to protect capital from the bumps in volume action prior to full breakouts.
That is all for me today. I hope you hit all of your goals this Thursday!
Today’s Economic Data Courtesy of Trading Economics dot com. Be sure to refresh the date at the top left.
The demographic picture of this country is starting to get downright frightening. Between the 10 million illegals that Biden has let in and the educational system that has scared two generations of youngsters we are in a fix. We need to act like Hungary fast and tee up some pro-family policies. Then we need to get these kids' brains re-wired: having children is rewarding and not bad for the climate, white folks are not evil colonizers etc etc. Good post my friend!