Trade Guideline for Tuesday (NQ)

A gap-down below prior day low triggered Open-Test-Drive down day on Monday with a close near the day low.

If we are going to get a follow-through selling into Tuesday price should stay below 2370.

• Below 2370 target a decline down to 2320.
• Above 2370 is bullish targeting a rally up to 2390-2400.

Trade Guideline For Monday (Nasdaq NQ)

With the European banking system on the verge of total collapse due to the hair cut they would have to take from the Greek sovereign debt they hold on their books, it is very likely that central banks in Europe and the US would print as much money as needed to continue to support the markets and in fact the entire financial system.

This is not to say that their actions would solve the problems. On the contrary, a problem of too much debt cannot be solve with more debt. What they are doing is just going to postpone and exacerbate the crisis.

In the short-run money-printing will continue to lift asset prices. In fact, as we can see from recent Zimbabwe's experiences, asset prices (including stocks) will continue to accelerate their rise as more and more money needed to be printed to bail out the escalating debt problem.

I would expect, as the debt crisis continues to get worse, central banks should continue to print money, the markets should to go up. Many funds who bet against continuous money-printing (short-sellers) by central banks are now getting squeezed.

Key level for NQ for Monday is 2400, and key level for S&P (ES) is 1280.

• Above 2400 implies NQ should explode to the upside.
• Below 2400 implies it is in a pullback or consolidation mode, with downside target of 2350, then 2320.

Trade Guideline for Friday (NQ)

Large gap-up open on Thursday with a close near the high of the day. With the S&P closing at key inflection point, the market is either going to rocket up on Friday or pullback down.

For Friday I will use 2400 as key Line-in-the-Sand.

• Above 2400 implies more rally on Friday, targeting a rally up to 2440.
• Below 2400 target a decline down to 2360.

Trade Guideline for Thursday (NQ)

Market tank hard soon after the open ahead of European decision on what to do with bondholders of Greek debt. It looks like it spooked the Central banks so much that they engineered a massive buy programs to push the market up into the close in order to paint a rosy picture ahead European decision.

The buying binge by some Central Banks should continue for a while in order to paint a rosy picture of the the very messy financial system nearing collapse. Will they be successful in delaying the inevitable total collapse? only time will tell.

For Thursday I will use 2345 as key line-in-the-Sand.

• Bullish above, targeting a rally up to 2380 then 2400.
• Bearish below 2345, targeting a decline down to 2380.

Trade Guideline For Wednesday (Nasdaq NQ)

A down-day on Tuesday, dropping down to just above 2310 support. For Wednesday I will use 2320 as key Line-in-the-Sand.

• Below 2320 the downtrend should continue down targeting a move down to 2300 then 2280
• Above 2320 implies NQ is is going up to 2355. A sustained break above 2355 implies a rre-test of Monday swing high.

Trade Guideline for Tuesday (NQ)

Another big up day in the equity market on Monday as the Fed continues to push the market up in their quest to squeeze the short-sellers in order to trigger short-covering rally. The Fed will be relentless in their pursuit as the global financial system gets closer and closer to total implosion.

It will come one day but the timing is not easy to forecast as the market is controlled by herd psychology. When will the herd turn and stampede for the exit? only time will tell. In the mean time, I will continue to follow the action of the market. With QE3 just around the corner the market may be bullish in anticipation of the eventual announcement.

For Tuesday I will use 2380 as my Key line-in-the-Sand

• Bullish above 2380, implies another upleg targeting a move up to re-test 2400, which is a key resistance for now. A break above 2400 may trigger a fast-moving short-covering rally up to 2450.
• Below 2380 implies NQ is in a pullback mode, targeting a move down to 2345, then if that does not hold, a further decline down to the next support level of 2310..

Trade Guideline For Monday (Nasdaq NQ)

An up-day Friday, with a close at key Line-in-the-Sand for Monday (2335), with 2355 resistance, 2310 and 2295 support. European sovereign debt crisis continues to intensify, with the Greek debt interest payment on their bond coming due at the end of the month. Greece does not have enough money to pay for the interest payment due at the end of the month.

The Euro zone countries would have to pay for the interest payment on the Greek bond if they are going to delay the inevitable total European banking collapse, which will come, not if but when, it is just a matter of time.

For Monday on NQ:

• Bullish above 2335 with the first target of 2355 and second target a test of Tuesday swing high.
• Bearish below 2335, targeting a decline down to either 2310 or 2295. If the market is really bearish it may go down to re-test 2270.

Trade Guideline for Friday (NQ)

On Thursday NQ opened and tank down to support, then promptly reversed to close not far below the open. European sovereign debt crisis and banking crisis will continue to intensify, and will continue to dominate the financial news. 

The collapse is coming, it is just a matter of time. The politicians would surely want to kick the can down the road as long as they can by printing paper money to buy some time, but the longer they keep the problem going the worse the end game would be. When Europe finally collapses the US will collapse with them as well because the US banks has insured the debt.

For Friday I will use 2295 as key Line-in-the-sand.

• Above 2295 implies nasdaq is going up to 2335.
• Below 2295 implies nasdaq is going down to test Thursday's low.

Trade Guideline for Thursday (NQ)

A down day Wednesday closing down at key support. European financial crisis continues to intensify.

For Thursday I will use 2310 as key Line-in-the-Sand.

• More decline below 2310, targeting 2290 then 2265.
• Bullish above 2310, targeting a rally up to 2335 then 2355.

Trade Guideline For Wednesday (Nasdaq NQ)

Nasdaq opened below Line-in-the-Sand and promptly tank down to  support. It failed to break down below 2300 support and reversed back up, triggering short-covering ahead of Apple's earning report after the market,  breaking above LIS and 2355 resistance closing up for the day.

For Wednesday I will use 2355 and key Line-n-the-Sand.

• More short-covering above 2355, targeting 2400.
• Below 2355 implies a re-test of support 2335, then 2315-2300.

Trade Guideline for Tuesday (NQ)

Monday was a pullback-down day for Nasdaq with a close near the day low, implies momentum was very bearish into the close. If the end of day momentum is going to continue on Tuesday NQ should stay below Line-in-the-Sand

For Tuesday I will use 2335 as key Line-in-the-Sand.

• Below 2335 implies the NQ is still in a down mode targeting the next support at 2315 then 2300.
• Above 2335 implies the market is going to re-test 2355. Above 2355 implies a re-test of Friday's high.

Trade Guideline For Monday (Nasdaq NQ)

NQ has clearly broken above double-top (2332.50) on Friday, but S&P has not. A clear and sustained break above double-top on the S&P 500 should trigger massive short-covering rally as the stop-loss gets hit. However, failure to break S&P 500 double-top can cause a sharp pullback down.

Key Line in-the-Sand for NQ on Monday is 2355 

• Above 2355 implies the uptrend is going to continue, with the next upside target 2380, but if S&P can clearly breaks above its double-top, NQ should rocket past 2380.
• Below 2355 implies NQ is in a pullback mode. First target down below 2355 is 2325, then 2315.

Trade Guideline for Friday (NQ)

NQ tested 2290-2295 support zone on several occasions in the morning on Thursday before breaking above 2315 LIS in the afternoon, then rocketed into the close. 

NQ closed above key LIS, but below double-top 2332.50. Breaking above and staying above 2332.50 on Friday should trigger short-covering rally, but failure to break above implies another pullback down to support.

For Friday i will use 2315 as key Line-in-the-Sand.

• Bullish above, targeting a move up to 2350. Short-covering spike can easily break through 2350 resistance.
• Below 2315 implies another test of support 2290-2295 zone.

Trade Guideline for Thursday (NQ)

Uptrend continued on to double-top 2332.50 on Wednesday, but failure to break above double top caused the market to pullback down to support (2290-2295) at the end of the day.

If 2290-2295 support hold on Thursday, the uptrend should continue, but it has to break-back above Line-in-the-sand (2315) to trend up again and break through double-top.

• A break above double top target a move up to 2350 area.
• Failure to break-back and stay above 2315 implies a bigger pullback down-move is likely, targeting a decline down to 2265-270 area.

Trade Guideline For Wednesday (Nasdaq NQ)

Another up-trending day again on Tuesday closing right at my key line-in-the-sand 2290.

• Above 2290 implies it may have to break above prior swing high (2233) before pulling back down. If so next upside target is 2350 area.
• Below 2290 implies the market is in a pullback mode targeting a decline down to 2265-2270. Below that the next support/target down is 2245-2250

Trade Guideline for Tuesday (NQ)

A large gap-up opening on Monday, as expected, triggered an open-drive up trending short-covering type of day, closing at the day high. With the Bank of England, the European Central Bank and the Federal Reserve all printing paper money like crazy the bullish uptrend should continue.

On Tuesday as long as it can stay above key support zone.  However, a break above prior swing high 2285 may trigger some profit-taking pullback down.

Key Line-in-the-Sand for Tuesday is 2265.

• Above 2265 implies the market is still in a nice uptrend, targeting a break above 2285 swing high to 2300-2310 zone.
• Below 2265 implies nasday is in a pullback mode before going up again. If so, pullback target down are 2215-2220. On a strong downtrend the next support is 2200.

Trade Guideline For Monday (Nasdaq NQ)

After making a higher high in the afternoon on Friday, NQ pullback down and close right at key Line-in-the-Sand 2200. Whether it will continue to pullback down to lower level or rally back up on Monday, will depend on where the market be in relation to the LIS after the open.

European Sovereign debt Crisis will continue to dominate the financial news.

• For Monday, above 2200 implies nasdaq is going higher targeting 2260.
• Below 2200 implies Nasdaq is in a pullabck mode down to 2150-2160.

Trade Guideline for Friday (NQ)

After a brief early morning pullback down to key support, the market rallied all day with a close at the day high. Should another pullback on Friday stays above key support level the current uptrend should continue.

The Fed is going to officially announce QE3 should and that news should be very bullish for the Stock Market, Precious Metals and Commodities.

For Friday my key line-in-the-sand is 2200.

• Above 2200 NQ should continue to go up to the next upside target 2250. If it gets really bullish, NQ can easily rocket up to 2175 area.
• Pullback that clearly breaks below 2200 implies a larger pullabck is on the card. If so i will look for the market to drop down to 2180 then 2160. If the market gets really bearish, it can easily drop down to 2120.

Trade Guideline for Thursday (NQ)

With European banking system on the verge of collapse the Fed is getting ready for QE3), and probably part of the reason why the market has been rocketing over the last two days. 

For Thursday I will use 2160 as key line-in-the-Sand.

• Above 2160 I will look for NQ to continue to rally, targeting 2200.
• Below 2160 implies NQ is in a pullback-down mode targeting a decline down to 2120. On a hard downtrend, the next downside target is 2100-2110.

Trade Guideline For Wednesday (Nasdaq NQ)

Massive end of day buy programs triggered by the plunge Protection Team pushed NQ up about 91 points from the day low, closing at the day high. The end of day rally can either continue up or reversed back down on Wednesday.

For Wednesday I will use 2100 as my key Line-in-the-Sand.

• Above 2100 the rally should continue with 2150-2160 as the next target.
• Below 2100 the market may go back down to test Tuesday's low.

Trade Guideline for Tuesday (NQ)

As expected, Monday was another bearish trending down day, with a close at the low of the day. It may at some point have to bounce back up to 2100 (although not necessary) to relieve the oversold pressure. But as European sovereign debt crisis intensifies, the sell-off in the stock market should continue.

Key Line-in-the-sand for Tuesday is 2100.

• Below 2100, NQ is in a fast move down to 2030-2040, then 2000.
• Above 2100 implies the market is going to pullback up (temporarily) to 2140-2150 before going back down.

Trade Guideline For Monday (Nasdaq NQ)

European Sovereign Debt Crisis ==>> Credit Contraction ==>> Unwinding of dollar carry trade ==>> intensifies credit contraction ==>> has the potential to crash the market, if the Plunge Protection Team gets overwhelmed.

Key level I will be watching for on Monday is 2150.

• Below 2150 the market is in a very strong decline, targeting  a move down to 2100. If 2100 level does not hold, we can see a fast move down to 2030-2040 area, or below which implies a crash. A crash is not out of the picture because the situation in Europe is getting worse by by the day.
• Above 2150 implies the market is temporarily out of danger, and is in a pullback-up mode, targeting 2180 then 2200.