NQ Guideline For Monday

A gap-up open on Friday failed to attract any buyers or short-covers and NQ drifted sideways with a bearish bias. The Fed will continue to trigger buy programs during low volume night trading hoping to trigger buying or short-covering when the market opens for the regular trading session. However, the forces of deflation continues to put downward pressure on the equity market.

 

Even with the launching of a new rounds of global QE programs and the launching of helicopter money programs in Japan failed to sustain continuing.

Unless the Fed triggers major buy programs, look for the equity market to continue to trades sideways down to support before it can make a major trending move up again. NQ more relevant prior high support on the daily chart is at 4530.

 

Loretta Mester, president of the Federal Reserve Bank of Cleveland and a member of the rate-setting Federal Open Market Committee (FOMC), signalled imminent launching of Helicopter Money program in the US, to stoke spending, in addition to interest rate cuts and quantitative easing.

Helicopter money is where stimulus is directly pumped into the real economy, a direct payments to households and businesses, not through the banking system.

More QE and Helicopter Money is extremely bullish for Gold and Silver prices  

NQ Guideline For Friday

Wednesday night buy programs managed to cause a gap-up opening for NQ on Thursday. However, even with major helicopter money program in progress in Japan which helped whack the Japanese yen down, there was no follow-up buying participation in the equity market. NQ simply traded sideways all day on Thursday.

 

The pattern of choppy narrow range pattern should continue as central banks continue to battle the forces of deflation, their tools getting less and less effective, an indication the beginning of the end for central banks is already in progress.

NQ Guideline For Thursday

Without any new buyers or short-covering, the Fed was not able to hold the equity market up on Wednesday, as NQ simply traded sideway with a slight downward bias.

 

Without any new buyers or short-covering NQ may continue to trade sideways with a down bias on Thursday, unless of course the Fed buys aggressively. Next support is 4530.

 

Japan hope that their helicopter money program could hold down the value of the Japanese yen

NQ Guideline For Wednesday

Buy programs continued on Monday night and into the opening bell on Tuesday. NQ opened with a gap-up, but lack of buying participation by investors caused NQ to simply traded sideways all day into the close.

 

With the equity market currently in overbought condition on the daily chart, look for the market to either trade sideways or pullback down on Wednesday, unless of course they are willing to trigger massive buy programs and push NQ above Tuesday swing high. If so, there may more shorts that needs to cover.

 

With gold in deep overbought condition on Tuesday, it was easy for them to whack it down, and so it was, as gold was whack down hard.

NQ Guideline For Tuesday

Buy programs continued on Monday designed to push the major equity indices to all time new high in order to create an illusion of prosperity. The buy programs should continue a while longer to ensure that the breakout to new high is sustained. The last thing central banks want to see is a false breakout situation.

 

However, once the euphoria from massive new round of global central banks money printing activities has fade away the forces of deflation will come back with a vengeance to crush global central banks.

 

Now that the Dow and the S&P 500 has made a higher high above 2015 high, it should soon be followed by a sharp summer/fall selloff followed by rally.

 

This current new round of quantitative easing could be one of the last round before the global fiat monetary system collapses, and gold and silver standard reign supreme again. The timing of the collapse is very difficult to forecast but the final cycle top and the beginning of the end could starts between 2018 to 2019  

NQ Guideline For Monday

The equity market rallied sharply on Friday as buy programs continued to run over stop-losses. There is really nothing to stop the buy programs anytime soon as the goal of central banks is to create an illusion that the economy is doing well.

 

But the prosperity is just an illusion, just a bubble, created by easy credit, and all bubble burst, and it seems the bursting of the bubble is not too far away. Central banks are now beginning to lose their battle against gold an silver, with gold and silver continuing to rally sharply as investors starts to lose their trust in central banks and running into gold and silver to protect their wealth against central banks who are hell bent on collapsing their fiat currency.

 

The Fed official announcement of new credit easing programs should rocket the stock and the bond market one more time before the whole financial system collapses. Gold and silver will then reign supreme again as the only currency left standing when all fiat currencies value falls to zero.

NQ Guideline For Friday

Against intensifying deflationary forces the equity market simply traded sideways on Thursday as central banks were unable to push the market higher ahead of the employment report on Friday.

 

Whatever the report may be, the Fed would have to make some kind of announcement regarding monetary easing very soon before the USD breaks out of resistance. A USD break above resistance is bearish for the stock market and could unleash selling that would overrun central banks buy programs.

 

NQ key support for Friday will be 4435 and NQ would need to stay above 4435 in order to keep sellers at bay, and may even trigger some end of the week short-covering activities.

 

Trading below 4435 is an indication NQ is potentially going into a larger pullback down move. Next support is back at 4400.

 

Deflationary forces created by negative interest rates is killing all the major banks, with many on the verge of bankruptcy as their stock price continue to drop. Below is a chart showing banks share price decline over the last 16 years, from the year 2000 to now.

NQ Guideline For Thursday

Attempted selloff at the open on Wednesday was aggressively bought, and the buy programs continued all day long into the close. NQ had a large range up day on Wednesday.

 

With the Fed ready to launch some kind of quantitative easing, one possible format would be forward guidance, buy programs should continue to be very active in the equity market. The gold market, the silver market and the bond market are already anticipating more easing from all central banks until the whole system collapses.

On Thursday support/resistance price level for NQ is 4435, bullish above, and implies rally to continue. Below 4435 is an indication NQ is going into a sideway move before exploding up again, as long as sideways move does not get out of hand.

NQ Guideline For Wednesday

The battle between central banks buying and forces of deflation pushing the market down continued on Tuesday with deflation winning the battle as the market decline.

 

With global central banks on the next round of QE, they are starting to lose their fight against precious metal as investors are starting to pile into precious metal to protect themselves from global central banks hell-bent on destroying paper currency.

 

Market volatility should continue to be elevated going foreword as the battle between central banks and forces of deflation intensifies, with sharp selloff that is followed by sharp rallies.

 

Key support/resistance price level for NQ during Wednesday trading will again be 4400. First resistance is at 4450 with first support at 4340

NQ Guideline for Tuesday

The equity market rally hard on Friday ahead of the long 4th of July weekend. With most traders back on Tuesday the direction of the market would depends on what the Fed is going to do with the monetary policy.

 

With Europe and Asia on their next round of quantitative easing program the Fed would have to do something to prevent the US dollar from breaking out to the upside. A breakout could trigger global stock market selloff, definitely something the Fed would want to prevent.

 

All major stock indices are set continue to rally but a US dollar breakout could spoil the party. Key support for NQ on Tuesday will be 4400. Rally should continue above 4400.

 

Helicopter Money?