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
MNQZ23 seems to be trying once again to crawl higher as traders and investors try to figure out the speed of the economy’s impact upon landing from potential slowdowns. We know how the build the real parachutes for it, but no one seems interested in making them.
The Israel-Gaza war drags on and fears of terror attacks before Christmas begin to rise. In a completely insane twist, at least in my opinion, now that Zelenskyy’s war chest has dried up, Lloyd Austin warns that U.S. troops will be sent to Ukraine. It’s absolutely crazy that these elites want to force a world war and make us all pay for it with blood and treasure.
Small caps struggle, and yet the generals of the tech sector, like AAPL 0.00%↑ rise to all-time high valuations. The few large-cap tech stocks continue to print revenue while the rest languish. The Russell 2000 still fell nearly 1.5% yesterday. As I mentioned a couple of days ago, 40% of the Russell 2000 has negative earnings.
That is what we face in the American economy, cheap money chasing lousy business concepts, while the government drives up prices through the printing press and prices for common goods still run higher. One of those examples is rent in Manhattan. The average cost of an apartment there is $4300/mo. and the average salary is $6600. That means 65% of your salary goes to rent. Dave Ramsey is having a heart attack at the moment in all likelihood. Permanent job losses are also rising relatively rapidly at the same time, which could be signaling a recession. Only time will tell.
The costs of building the U.S. military are also being throttled by this same economic strategy and the sellout of our industrial infrastructure overseas as is discussed in this article. Because China has boundaries for all of its metal requirements, it can replace ships and military gear twice as fast as the USA can. When he had all of our industries domestically domiciled during World War II, the United States was called the “Arsenal of Democracy” because of our manufacturing diversification and prowess. We are no longer that, and China has somehow become “the foundry of fascism” as we ceded those jobs and revenues to them via globalism. China is truly a fascist state, much as America is now. You need to truly understand the definition of fascism to understand what I just wrote. If I had time, I could write a book on that theme, but I don’t have the time. The long-term prospects of the USA may be determined by our ability to restore key domestic industries for the sake of national security alone. That will be a recurring theme in the 21st century.
The other insane thing is that Bloomberg finally figured out what I have been ranting about for two years. Our Russian energy embargo paid for their war with Ukraine. Giving Russia the ability to sell oil to foreign markets in public markets, gray markets, and black markets while restraining America’s ability to drill market and produce raw and refined petroleum products cheaply causes prices to rise and puts money in Russia’s coffers.
On this end of the great Atlantic pond, there is controversy over natural gas revenues from independent producers and multinational energy firms. Venture Global has allegedly reneged on its contract agreements and essentially hijacked revenues and profits in the process. I remember the early days of independent gas production. In the 1980s these companies would literally build stripping towers for each investor and line them up in rows. Those days are gone and the independents are now creating huge waves in the industry.
Let’s drop this discussion and look at the charts.
If MNQZ23 can rally above 15962, it should have no problem rallying above the swing high at 15988.75 and beyond to 16032.50 and 16088.50 by Thursday. If it does not, MQNZ23 could indeed fall back quickly based on Tuesday’s price action to support at 15865. Failing that support, if sellers become aggressive, MNQZ23 could drop back to the swing low at 15827.50 and beyond to 15783.75 and even 15728 by Thursday.
That is all I have today. Make it a pleasant Wednesday and hit as many of your goals as you can. Thanks again for supporting this Substack!
Today’s Economic Data Courtesy of Trading Economics dot com. Be sure to refresh the date at the top left.
