Trade Guideline for Friday (NQ)

Thursday was a typical consolidation type of day, trending down in then morning the reversed, and then trend up in the afternoon, closing just  below key support/resistance level for Friday, 2770. 

NQ trading pattern for Friday would depends on where it opens and trade in the morning in relation to its key level 2770.

• If it open gap-up above 2770 and then if it can stay above 2770, it is likely to trend up all day for the usual Friday rally. 
• Below 2770 in the morning implies it may need to pullback down to re-test Thursday support zone.

Egon Von Greyerz - European leaders lying, Trillions needs to be printed.

Trade Guideline for Thursday (NQ)

Wednesday was a pullback day with the close near the middle of the range. Thursday could be a consolidation day with potential false breakout of the consolidation range 2750-2775, unless it can breakout and stay out of the range.

Key S/R level for Thursday is 2775.

• Breaking above and staying above implies the next leg up is already on its way, targeting 2790 area.
• Breaking below and staying below implies it is still in a pullabck mode, likely to break below Wednesday's low.

Peter Schiff's article published in Forbes, highly unusual, but he predicted Market-Crushing Treasury Collapse to hit around 2013. However, the Fed has the printing press to easily delay the eventual dollar collapse.

http://www.forbes.com/sites/afontevecchia/2012/03/27/peter-schiff-market-crushing-treasury-collapse-to-hit-around-2013/

Trade Guideline For Wednesday (Nasdaq NQ)

A narrow-range continuation uptrending day on Tuesday with a small profit-taking decline at the end of the day. On Wednesday I am looking for consolidation day unless it can stay above 2785.

Key level for Wednesday is 2785.

• Below 2785 implies it is going into consolidation / pullback mode.
• Above 2785 implies another leg up is in progress, targeting 2800. 

Trade Guideline for Tuesday (NQ)

Hints of more money-printing by Bernanke caused a large gap-up open on Monday that triggered another round of short-covering rally which lasted the whole trading day, from open to close. The short-sellers capitulated into the close as NQ close at the high of the day.

For Tuesday, we may see either a continuing rally in the morning followed by profit-taking pullback, or profit-taking in the morning that should be followed by a rally, or just a consolidation/pullback day on Tuesday. Whatever it will be would depend on where NQ trades in relation to key inflection level for Tuesday.

Key level for Tuesday is 2765.

• Above 2765 implies continuing rally, next upside target is 2800.
• Below 2765 implies it is going into a pullback or consolidation mode, first downside target is 2745-2750

Hint of more money-printing by Ben Bernankie

Trade Guideline For Monday (Nasdaq NQ)

NQ consolidated for the second day in a row on Friday. It looks ready to break our of the range, and trend back up again. If so, it should stay above key inflection S/R level on Monday, and that level is 2730.

• A clear and sustained break above 2730 has the potential to trigger another round of short-covering rally, with upside target  2750-2755.
• Below 2730 implies more consolidation.

Hot money is beginning to flow back into the Eurozone, selling in US treasury and buying in Euro denominated bond, resulting in a recent sharp rise in the yield on the 10-year US treasury note.

The Mess That Greenspan Made

Here is the link to the blog.
http://themessthatgreenspanmade.blogspot.ca/2010/01/few-points-on-great-depression.html
 

Trade Guideline for Friday (NQ)

As expected, below 2745 NQ would be in consolidation mode, as it did all day on Thursday. Key inflection level for Friday is 2735.

• Above 2735 implies the next up-leg is in progress. A sustained break above 2735 could trigger another short-covering rally, targeting 2755-2760.
• Below 2735 implies NQ is still in a consolidation/pullback mode, with key support at 2715. A clear and sustained break below 2715 could cause a fast liquidation decline as trailing stop-loss gets triggered.

Here is a chart of inflation in the US since 1800.

Here is the link to the accompanying article:

http://iaconoresearch.com/2012/03/21/inflation-before-and-after-the-federal-reserve/ 

Trade Guideline for Thursday (NQ)

Profit-taking decline at the end of an up-trending day broke below key trend support level 2745. 

• For Thursday, as long a it stays below broken support now resistance, 2745, NQ will be in a pullback/consolidation mode.
• A re-break back above 2745 implies the next upleg is in progress, targeting a break above Wednesday's swing high.

Trade Guideline For Wednesday (Nasdaq NQ)

A large gap-down open on Tuesday kept NQ inside prior day range most of the day, with a small breakout above prior day high near the close. 

For Wednesday, key level to watch is 2730.

• Above 2730 implies it is in a breakout mode, and could trigger another short-covering rally day, likely target 2745-2750.
• Below 2730 it is likely going into a pullback/consolidation mode, downside target 2710-2715.

Portugal may need a Plan B.

It is now Portugal's turn to be in the limelight. Portugal 5-year bond yield is stuck around 16%, where Greek bond traded in April 2011 when euro-zone politician started to insists that private investors should take losses.

Trade Guideline for Tuesday (NQ)

As expected, NQ broke out above resistance, triggered short-covering rally, trend up most of the day with a small profit-taking decline at the end of the day, closing just slightly below key inflection level for Tuesday, 2730.

If we are going to get another trending up day on Tuesday then it should trade above 2730 area. However, a sustained break below 2730 implies it is going into consolidation.

• Above 2730 implies another uptrend, targeting 2760 - 2770.
• Below 2730 implies consolidation type of day, with the first target down 2720-2715. 

With so much money-printing by the ECB and the Fed, crude oil price continues to rally.

 

Trading Guideline for Monday (NQ)

Another sideways consolidation day on Friday, the third day in a row. For Monday. we either get another consolidation/pullback day or a breakout short-covering rally, depending how where NQ trades in relation to its key inflection level.

Key inflection S/R level for Monday is 2710.

• Above 2710 implies another potential trending up short-covering rally.
• Below 2710 implies continual consolidation/pullback day.

Here is a more realistic chart (compared to the Fed's currency supply chart) of true US currency money supply growth matrix..

Link to the full article: http://blogs-images.forbes.com/michaelpollaro/files/2012/03/Slide15-e1332006394686.gif

US Treasury Sell-off Gathering Pace

Link: http://www.goldmoney.com/gold-research/newsdesk/us-treasuries-sell-off-gathering-pace.html?gmrefcode=dollarc

US Dollar Chart posted by 321 Gold

Link to the full article:
http://www.321gold.com/editorials/sfs/hubbartt031612.html

Financial Repression Has Come Back to Stay: Carmen M. Reinhart

Link to the article:
http://www.bloomberg.com/news/2012-03-11/financial-repression-has-come-back-to-stay-carmen-m-reinhart.html

Trade Guideline for Friday (NQ)

NQ consolidated within a narrow trading range on Thursday as it was not able to blast above resistance. For Friday key resistance for NQ has move slightly up to 2715.

• A clear and sustained break above 2715 has the potential to trigger a short-coevring rally targeting 2740-2750 area.
• Below 2715 implies it is still in a pullback/consolidation mode, a decline targeting 2700 support. A clear and sustained break below 2700 may cause a quick liquidation decline down to 2675-2685 are.

 

Trade Guideline for Thursday (NQ)

A wide-range up-trend day on Tuesday was followed by a sideways consolidation day on Wednesday. For Thursday, unless NQ can clearly break above Wednesday's high and stay above, it is likely going to continue to consolidate.

Key level to watch for Thursday is 2710 area (resistance).

• Below 2710 implies NQ is in consolidation mode, with 2700 as key inflection point and 2680-2685 as key support.
• Above 2710 implies more short-covering rally.targeting 2730-2740.

Greek Debt Swap Could Be Short-Lived Reprieve

 

Link to CNBC story: http://www.cnbc.com/id/46700697


Forget China. ‘Hard Landing’ in US, Europe: Strategist
Link: http://www.cnbc.com/id/46714688

Trade Guideline For Wednesday (Nasdaq NQ)

Markets opened gap-up on Tuesday ahead of the FOMC decision, triggered massive short-covering that lasted all day on Tuesday. 

2 key levels I will be watching on Wednesday, 2670 support and 2660 Key Inflection Level.

• Above 2670 implies NQ is still in a fast move up. 
• Breaking below 2670 implies the fast move up has ended, and it is likely going into a pullback mode, targeting 2660. A break below 2660 implies it is going into consolidation, targeting a re-test of the 2645 breakout level.

With Germany and Switzerland now demanding their gold back from the US, it will be interesting to see what the US will do... because in most likelihood, the US do not have the gold any longer. Will they get "Tungsten" instead?

 

Trade Guideline for Tuesday (NQ)

NQ was basically flat ahead of the FOMC meeting on Tuesday. It may continue to do so until the release of the FOMC minutes in the afternoon. 

Where it trends after the minutes would depend on the level it trades in relation to key inflection level, which is 2645 for Tuesday.

• Below 2645 implies a decline targeting various support levels, first support is 2615-2620
• Above 2645 implies the next up-leg is underway, targets 2665, 2675, 2685

Trading Guideline for Monday (NQ)

NQ spent the whole day on Friday, consolidating, moving in a sideways fashion. On Monday it either breakout and re-trend back up, or continue to pullback down to support zones.

Key inflection point on Monday is 2650.

• Above 2650 implies the next up-leg is in progress, targeting 2660.
• Below 2650 implies it is still in a pullback mode, decline target 2330, then 2315.

Market is still focusing on Greek debt SWAP

Trade Guideline for Friday (NQ)

Another up-day in the equity markets today with NQ gaping-up at the open and then trending up all day, closing near the day high and just below key inflection point for Friday. That key level is 2640.

• Above 2640 implies the trend that started at the open on Thursday is still in progress targeting a break above 2650.
• Below 2640 implies NQ is going into a pullback mode, a decline targeting 2625 or 2615. 

Greek Debt SWAP drama continues to dominate the financial news out of Europe

Trade Guideline for Thursday (NQ)

NQ opened with a gap-up on Wednesday and then rallied as expected up to resistance 2615 before pulling back down. It closed just below key resistance 2615.

• For Thursday, a sustained break above 2615 implies a potential fast move up to the next resistance zone 2635-2640.
• Below 2615 implies sideways consolidation with support at 2585-2595. 

Greek debt SWAP issue continues to be played out by the European politicians.

Trade Guideline For Wednesday (Nasdaq NQ)

A large gap-down open on Tuesday was followed by a normal sideways consolidation price action for the rest of day, closing with a positive bias. If the end of day profit-taking rally on Tuesday can continue into   Wednesday we can expect NQ to rally back up to the next resistance level, 2615, but it has to stay above key inflection S/R level on Wednesday. That level is 2585 area.

• Above 2585 implies a potential rally up to 2605, then 2615.
• Below 2585 implies more consolidation or another down-trending day.

Eurozone credit crisis continues to intensifies despite massive currency printing by the ECB to help their collapsing banking system.

Trade Guideline for Tuesday (NQ)

A strong down day on Monday with a small profit-taking rally at the end of the day. On Tuesday we could either see an early morning rally or a continuation morning decline depending on where it trades in relation to it key inflection S/R level which is 2615 for Tuesday.

• Above 2615 implies the late day profit-taking on Monday is still in progress, targeting 2635-2640
• Below 2615 implies a continuation decline targeting 2600, then 2580-25-90. On a hard down-trend, next target below is 2570-2580

Trading Guideline for Monday (NQ)

A sideways consolidation day on Friday following an up day on Thursday. On Monday NQ either continue to consolidate sideways to down or breaking to another higher high above Friday's high depending on where it trades in relation to key inflection point, which is 2640 for Monday.

• Above 2640 implies the next leg up is in progress targeting a break above Friday swing high to 2655-2660.
• Below 2640 implies it is in consolidation/pullback mode, targeting 2615-2625.

Trade Guideline for Friday (NQ)

Pullback was completed at the end of the day on Wednesday as NQ opened and stay above key inflection price level on Thursday rallied ever slowly up to 2645 target.

For Friday key inflection price level is 2640.

• Above 2640 implies the next upleg is in progress targeting 2655 - 2665.
• Below 2640 implies it is in a pullback mode targeting 2615 - 2625.

Eurozone banks flock to LTRO