FRED has lost control of the train. They are completely stuck.This is why the next 6-12 months in the markets are going to make zero sense.
2020 the FRED not only created money they injected so much unnecessary money that have they not enforced global lockdowns the "2022 mini bubble" would have looked like 2000.
Markets will follow and always adjust to debasement meaning your earnings / your P/E ratios are useless in this environment.
The FRED tried raising rates the fastest in history to front run the M2 Velocity (money changing hands / transacting) but there's still simply too much money created, markets are finding support and have not "corrected" enough to off set lowering rates.
If the FRED does not lower rates look at the red line on chart 2 the Federal government will blow up due to to debt.
There's only one solid choice here, Option 1 "Global bust" meaning governments will default inflation will go negative no GDP growth safety nets will fail.
Option 2 "Global debasement" The FRED starts lowering rates cheap credit will flow into stock markets / gold / bitcoin Money Market Funds will pour back into the markets M2V will go parabolic reigniting a dangerous inflation cycle.
Once that blue box on chart two is broken this means its over. Considering how much of the market is pricing / preparing for a "collapse" yes a collapse will happen but what happens if its the currency debasement and not markets that fall? Correct, you need to re enter all markets.
Lets see how this plays out towards year end.
NQ
Support and Resistance Es,SPX, NQSupport and Resistance
Back to Basics : and understanding the tool to interpret price action can get you small wins on a daily basis.
Here are a few examples how to use it in today price action.
Especially when all three markets are in alignment.
Is that simple!
Stay Frosty!
NQ today will reach probably its 17360Hello
For me NQ will have 2 scenarios:
- It will reach 17360 then fall until 17050
- Or it will break out the 17360 in order to go up until 17780
So, keep eyes on levels drawn on my chart in order to have some idea.
remember that I do not have a cristal ball predicting markets future but I try to be more efficient and rationnal.
GOOD LUCK
2024-01-18 - a daily price action after hour update - nasdaq
Good evening and i hope you had a good trading day. Bulls took over in the globex session and we never looked back. Yesterday i said in my short term outlook that we go up and we did.
nasdaq e-mini futures
Most bullish indix of em all. Many of the same as dax for today. Nq just reached higher prices. We are trading 38 points below the december high and i think we will get there. Can we touch the big upper wedge? Probably. Bull case is the 400 point rally from the weekly low yesterday which could easily go to the wedge line around 17250. Bulls even bought the 160 point dip midday to close at the highs. Bear case is that this is a trading range from 16950 to 17120. The selloff from bar 43 to 50 was deep enough to dampen the euphoric rally. We are also at the highs of the wedge on the daily tf. They also argue that this is a trading range inside a bigger one between 16450 to 17130. So the question is, how much more room is there for the bulls despite the selling pressure? I think the most reasonable case is, that above 17100 there were many trapped bulls from the december high who will gladly use this rally to exit out of their longs and that’s another reason why i think the upside is limited. But i also thought NVIDIA at 400$ was high enough, so bulls might just continue to dance until the music stops.
short term: sideways to down (weakly held and i will long on big bull bars)
medium-long term: big down
New swing short position opened for nasdaq. I think shorting above 17000 on higher timeframes is a no brainer.
SPX Cash AnalysisWe're now getting a confirming signal that last week's top was at least a local top. Primary analysis (in Blue) however, because we did not make a new high in the SPX like the DJIA and NDX, the black (B) wave count is a valid EWT count. I do not favor the black pathway mainly due to our MACD signal, the other major indices hitting new highs, and lastly the price action I have as of today.
Best to all,
Chris
BTC Expectations for the new year, one mfin ride. More below! BTC has shown bullish willingness. I anticipate the new year to visit the lows around 25K, and the quarterly FVG, I will be there to accumulate some. Market might decide not to even go there and just fill the inefficiency at 32K and decide to moon from there. I'd worry about BTC if we close below 19K and stay there for over a couple of days. I'm not a Crypto bull but I'm for sure a Fiat bear so it forces me to be a crypto bull to a certain extent. If the ETF goes through and it most likely will, I expect volatility but eventually the highs around 65K will get swept. I highly doubt they're safe and I want a piece of the cake. With a bearish TVC:DXY and a bearish outlook on the future of fiat in general, we might see crazy numbers on BTC. I will keep the idea updated as the market tips its hand. let's enjoy the ride.
NQ Hourly Trend LinePrice action rules suggest that once a trend line is broke, we tend to make a new extreme before the reversal. As we can see here, price has broke, made a new high, and is not stagnant.
Just as horizontal break and retests are a thing for support/resistance, angular break and retests occur on trend lines as well. It'll be interesting to see.
Short the STONKSBig Bubble Big Bubble Big Bubble Big Bubble Big Bubble Big Bubble Big Bubble Big Bubble Big Bubble Big Bubble Big Bubble Big Bubble Big Bubble Big Bubble Big Bubble Big Bubble Big Bubble Big Bubble Big Bubble Big Bubble Big Bubble Big Bubble Big Bubble Big Bubble Big Bubble Big Bubble Big Bubble Big Bubble Big Bubble Big Bubble Big Bubble Big Bubble Big Bubble Big Bubble Big Bubble Big Bubble Big Bubble Big Bubble Big Bubble Big Bubble Big Bubble Big Bubble
Nasdaq Breaking highs! Entryy??It looks like NQ should break the weekly highs here and it should be looking backwards be a strong push ahead but because of the current market conditions this could simply be a liquidity grab before going back downwards especially if interest rates are raised next quarter.
Would I swing here for the long run? Absolutely not! Wait for some kind of a confirmation for long term entries. Super risky to hold if you're up. At least take partials if you are.
Day traders and short term swing traders should in my opinion, have a bullish bias to start this week and look for bullish entries if given any retracement + entry signals according to your strategies.
That's what I see, what do you guys think?
(Reason for current bullish move: Ease on interest rates, declining USD and golden zone fib retracement, "historically" showing upwards momentum after so there should be many buyers in the market.)
NQ expectations based on macro-economic analysis and structuralThere are 2 scenarios that I expect to occur, both with the final outcome, the circumstantial achievement of historical highs, because: we had a response to the restrictive monetary policies of the FED before 3/11/2023 with a lower than expected NFP and a rate of rising unemployment; then with decreasing inflation. I expect scenario 1 (white) to occur if in these days the markets close with a bearish acceptance below the last Value Area; scenario 2 (green) only if we have a bullish acceptance of the last established maximum. Seasonality should also not be overlooked as we are in Q4 and the very close Christmas rally, a Risk-ON period.