Trade Guideline For Tuesday (NQ)

Monday was a narrow-range sideways consolidation day, which is a setup for possible trending move on Tuesday, the direction to be determine by where it trades in relation to its key support/resistance level.

Key S/R Level for Tuesday is 2720.

• Above 2720 implies potential trending move is to the upside, targeting 2760-2770.
• Below 2720 implies a potential trending move is down, targeting 2670-2680

Cascading Waves Of Debt Implosion

http://www.mybudget360.com/cascading-waves-debt-implosion-5-charts-velocity-money-european-debt-crisis-fed-spending-banking-reserves/

Money, Power and Wall Street - Frontline

Interesting Series from Frontline

http://www.pbs.org/wgbh/pages/frontline/money-power-wall-street/

Trading Guideline For Monday (NQ)

A narrow-range doji day for NQ on Friday, the close was  near the open. Where it trades on Monday in relation to its key support/resistance level will determine if it is going to be a trending up day or a consolidation/pullback day.

Key Level for Monday is 2740.

• Above 2740 implies another round of short-covering up-day, targeting 2770-2780.
• Below  2740 implies it is going into a consolidation/pullback down day, targeting 2700-2710 area.

The latest casualty of European Debt crisis is the government of Romania with collapsed last Friday amid Austerity backlash

Trade Guideline For Friday (NQ)

NQ traded sideways in the morning on Thursday but stayed above key Support/Resistance Level 2700, then rallied up in the afternoon on short-covering rally. 

Friday is likely a consolidation day, possibly pulling back down to 2700 support, trading between 2730 resistance and 2700 support. However, a sustained break out of the range could cause a trending move in the direction of the break.

Trade Guideline For Thursday (NQ)

I am thinking that the Fed must have pushed the market up overnight Tuesday in order to trigger an overnight short-covering rally ahead of their Wednesday's meeting. 

The were successful  but failed to cause a follow-up buying during the day Wednesday as the market simply gap-up and then went sideways all day, and not the panic buying spree they must have been hoping for.

Key for Thursday is where NQ trades in relation to its key Support/Resistance Level, which is 2700.

• Above 2700 implies it is likely to cause another round of short-covering, which could propel rally up to the next resistance level 2740.
• Below 2700 implies it is going into a pullback mode, with first target of Wednesday low. A sustained break below Wednesday's low could cause a liquidation drop, targeting 2670 then 2650

Trading Guideline For Wednesday (NQ)

NQ opened inside prior day trading range and stayed inside the range all day on Tuesday. Expect more of the same on Wednesday unless it can breakout of the range and stay out.

Upper Range = 2655, Lower Range = 2625

• Above 2655 could trigger a short-covering rally, targeting a move up to 2670-2680. If the short-covering rally is triggered overnight it could result in a large gap-up open on Wednesday.
• Staying inside the range implies more choppy sideways consolidation.
• Below 2625 implies a fast liquidation drop down to 2600, then 2570 Head and Shoulder downside target.

Head & Shoulder Pattern

Trade Guideline for Tuesday (NQ)

NQ open gap-down then trend down in the morning, reversed and then trend up the rest of the day, closing near the day high.

Key level to watch for Tuesday is Monday's swing low.

• Staying above Monday's low implies it is in a pullback mode, rally up to 2670-2680 resistance, or staying inside a trading range between Monday's low and 2670 resistance.
• Staying below Monday's low implies another large down-trending day.

Trade Guideline For Monday (Nasdaq NQ)

NQ opened gap-up, closed the gap, then rally up to resistance. It quickly reversed and trend down the rest of the day closing near the day low, right at support.

For Monday, Key inflection Level is 2670

• A sustained break below 2670 could cause a fast liquidation drop down to the next support level 2660. If 2660 does not hold, a sustained break below 2660 could cause a fast liquidation, tanking it down to 2630-2640.
• Staying above 2670 could trigger a short-covering rally to resistance 2700 before dropping back down to re-test the low. It would likely cause a consolidation type of day, 2670 range low and 2700 range high.

Spanish debt crisis intensifies.

Jim Rickards on the Goals of Federal Reserve Policy: Inflation and Financial Repression

Link to Jim Rikards's interview on Financial Sense News Hour

http://www.financialsense.com/financial-sense-newshour/guest-expert/2012/04/18/goals-of-federal-reserve-policy-inflation-and-financial-repression

Trade Guideline for Friday (NQ)

NQ opened inside prior day trading range on Thursday and then attempted to breakout to the upside but failed. The failed breakout was quickly and swiftly reversed, easily broke below and stay below prior consolidation support zone triggering selling algorithm that took it down to the next support zone before pausing and pulling back up for the end of day profit-taking.

Key resistance for Friday is 2690.

• If it remains below key resistance level, it should continue to tank. 
• A break-back above key resistance level implies it is going into consolidation mode, targeting a move up to 2700-2705.

Trade Guideline for Thursday (NQ)

As expected, Wednesday was a consolidation day. Thursday could be another consolidation day unless it can breakout and stay outside Wednesday's trading range.

Range High = 2725
Range Low = 2705

A sustained break out of the range has the potential to trigger a fast move in the direction of the break.

• A fast short-covering rally on a sustained break above 2725, targeting 2750
• A fast liquidation decline on a sustained break below 2705, targeting 2680 then 2670..

Trade Guideline For Wednesday (Nasdaq NQ)

Nasdaq open gap-up and then trend up all day on Tuesday, closing near the high of the day. For Wednesday as long as NQ can stay above key inflection level, the trend will continue up. Failure to stay above key level implies it is going into a consolidation/pullback mode.

Key inflection level is 2725.

• Above 2725 implies the next leg up is in progress, target 2750.
• Below 2725 implies it is going into a consolidation/pullback mode target down is 2700-2710.

Spain debt crisis remains in the limelight.

Trade Guideline for Tuesday (NQ)

Nasdaq opened and tank hard in the early morning trading, dropping down to just below support zone before pausing and consolidated the rest of the day. The current consolidation pattern is in the form of a bear flag, a setup for the next liquidation decline.

The 60-minute Head & Shoulder chart is still intact at the moment. As long as it remains intact, target down is 1570.

For Tuesday, key inflection level is 2660, bullish above, bearish below.

• Sustained break below 2660 implies consolidation has ended and the next liquidation decline is in progress, heading down towards the head and Shoulder target of 2570. The decline could be fast and furious as more and more sell algorithm gets triggered.
• Above 2660 implies NQ is still in a consolidation/pullback mode targeting 2680. A sustained break above 2680 could trigger a snap-back short-covering rally, with upside target of 2700-2705

Spanish bond yield briefly spiked above 6% on Monday. 6% level is a key level, above implies the country's debt situation is in crisis/default territory.

Trade Guideline For Monday (Nasdaq NQ)

The market opened and tank all day on Friday, closing near the low. NQ 60-minute chart is currently displaying a clear bearish head and shoulder pattern with downside target 2570. However, there are several support zones on the way down that we need to watch out for as they could cause a bounce or reversed the decline.

For Monday, key level is about 2705.

• Below 2705 implies NQ is in a fast mode down, targeting the next support 2670. On a very strong down move, it can trigger selling algorithm that can take price much further down before pausing.
• Above 2705 implies the down move is in a pause mode, upside target 2710-2720.

Spain, the next domino to fall in Europe

Trade Guideline for Friday (NQ)

On Thursday, early morning rally paused only briefly at first resistance 2725 before breaking above it, then stopped just below second resistance level 2745. For Friday 2745 will still act as resistance, 2720 is now support.

Key inflection level for Friday is 2735.

• Above 2735 implies the next leg up is in progress, targeting a break above 2745 resistance to 2755-2765. A clear and sustained break above 2745 would likely trigger a fast short-covering rally.
• Below 2735 implies NQ is going into a pullback/consolidation mode, decline target 2720 then 2710.

For longer term view, here is Investors Intelligence Bull/Bear Sentiment Chart as posted at King World News

Link to the KWN report here:

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/4/12_John_Gray_-_This_is_Dangerous,_Here_is_What_Big_Money_is_Doing.html

Trade Guideline for Thursday (NQ)

A sideways consolidation day on Wednesday as NQ continued to stay inside a trading range. For Thursday I am looking for price action to stay inside a trading range between 2685 -  2745.

• First support is 2700, First Resistance is 2725.
• Second Support is 2685, Second Resistance is 2745.

European Sovereign Debt Crisis is now hitting Spain and Italy

Trade Guideline For Wednesday (Nasdaq NQ)

On Tuesday, NQ opened gap-up and rallied up to resistance, but failed to break above. It then reversed back down triggering selling algorithm, tank down hard, a large downtrending day.

For Wednesday where it trades in relation to key inflection level will determine whether or not we will get another large down day or a consolidation day. 

Key level is 2700.

• Above 2700 implies it is going intro a pullback/consolidation mode, rally targets are 2715 and 2725.
• Below 2700 implies it is going for another liquidation selloff, targets are 2660, then 2645.  

Silver Chart - Price Projection From Kitco

With the European derivative market now starting to implode, which is a prelude to the total collapse of fiat currencies, prices of Gold, Silver, Commodities (and all real assets) should continue to rise when priced in fiat currencies.

It is not surprising to see such frantic effort by the US Federal Reserve and its agents in suppressing the price of Gold and Silver.

Here's an interesting Silver Chart (price Projection)

Trade Guideline for Tuesday (NQ)

Attempted breakdown at the open on Monday failed. NQ quickly reversed course and rally back up towards resistance zone. 

It may try to breakout above resistance on Tuesday. If so, it should break and stay above key level. Failure to breakout above resistance implies it will go back down again.

Key level for Tuesday is 2745.

• Above 2745 implies it is in a breakout mode, targeting a re-test of last Thursday swing high, lower high or higher high.
• Below 2745 implies it is going back down to re-test Monday's swing low.

Total Public Debt in the US

Total Global Debt $190 Trillion

http://www.mybudget360.com/unsustainable-global-debt-total-global-debt-190-trillion-global-debt-gdp-european-union-financial-crisis/

Trade Guideline For Monday (Nasdaq NQ)

Last Thursday's morning rally stalled just below key resistance 2760 the whole afternoon. For Monday, depending on where it opens in relation to 2760, it is likely to do:

• a) above 2760 implies a rally, to be fueled by short-covering, target up is 2780-2790.
• b) below 2760 implies it is in a pullback mode, targeting 2740-2745 before attempting to break above 2760. But a clear and sustained break below 2740 implies it is going to re-test Wednesday swing low 2725.

Equity Market Will Be Closed on Friday

The US Equity Market will be closed on Friday due to the Easter Holiday. It will re-open next week Monday. Happy Easter.

Trade Guideline for Thursday (NQ)

NQ opened gap-down, broke below key support zone on Wednesday and then tank down breaking through the next support zone before reversing back up closing inside previous trading range.

Unless it can breakout and stay out of the range, 2730 support and 2760 resistance, I would be looking for it to consolidate between the range.

Range Breakout

Trade Guideline For Wednesday (Nasdaq NQ)

Tuesday was a sideways consolidation day with the close near middle of the day range. Consolidation day tends to sets up a trending type of day, and where it trends would depends on how it trades in realtion to the key inflection level.

Key level for Wednesday would be 2780.

• Above 2780 implies it is trending up, next target up is 2800 area.
• Below 2780 implies it is still in a pullback / consolidation mode, downside target 2755-2760. A clear and sustained break below could trigger a fast liquidation down to 2735-2740.

Trade Guideline for Tuesday (NQ)

NQ trended up all day on Monday. It broke above its key resistance late morning session and continue to trend up all day, with a small end of day profit-taking pullback. 

Key support for Tuesday will be 2775.

• Staying above 2775 implies the uptrend that started on Monday is still in progress.
• Sustained break below 2775 implies it is going into a pullback / consolidation, downside target is 2755-2765. 

Trade Guideline For Monday (Nasdaq NQ)

NQ consolidated all day on Friday closing in the middle of the range 2755, with 2770 as the upper range (resistance) and 2740 as the lower range (support).

• A clear and sustained break out of the range implies a trending move in the direction of the break.
• A break that fail to stay out of the range implies a falsebreak, reversal targeting a test of the opposite range limit.