NQ Guideline For Monday

The battles between central banks and deflation continues. On Friday, buy programs managed to push the stock market up, an up day in the market, but the rally momentum on the daily chart is getting really slow, and a sharp selloff may not be too far away.

 

The Fed is going to continue to support the market into the November election in order to get banker-controlled Hillary elected for President simply because Trump is not really a banker-friendly candidate. Whether or not the Fed can really hold up the stock market against intensifying deflationary forces, only time will tell.

 

For Monday, short term key price level to watch is 4855, acting as support as of Friday's close.

-- Staying above 4855 should keep major selling activities at bay.

-- Trading below 4855 is likely to attract selling activities,  next support is at 4800.

 

European banking stocks are dying under the weight of the negative interest rates, stock prices hitting lows

NQ Guideline For Friday

The stock market sold off hard on Thursday ahead of the official inclusion of the Chinese Yuan into the SDR basket, and the official launching of the SDR world money as a world reserve currency to slowly replaces the USD. Central banks buy program managed to push the market back up to the middle of the day range for NQ.

 

The Fed Chairperson Janet Yellen has officially requested permission from Congress to openly and directly buy the stock market, instead of using proxy.

 

The battle between deflation and central banks is certain to continue until central banks eventually capitulates or until fiat paper money becomes worthless. Deflation is now starting to win. Deutsche Banks shares is fast approaching zero, unless Germany and ECB can print enough Euros to bail out the bank out. A collapse of Deutsche bank who has $46 trillion derivative value on its books will crash the global stock market and financial market.

 

On Friday key inflection price level for NQ will be 4845 again.

-- Selling will come back unless NQ can push back above 4845, and then stay above.

-- Trading back below 4845 is likely to attract renewed selling activities, with the next critical support at 4800

 

Here is a view of Deutsche Bank and Commerzbank share as seen from 1989 to now. While Commerzbank rallied back after the financial crisis “ended,” both Deutsche Bank and Commerzbank have not recovered.

NQ Guideline For Thursday

Fed-engineered equity market rally on Tuesday designed to make Janet Yellen,  Fed Chairperson looks good for Wednesday's testimony before the House Financial Services Committee on regulation and supervision, failed to continue on Wednesday. NQ simply trades sideways on Wednesday.

 

The battle between central banks and deflation is going to intensify going forward, and it should cause a rise in volatility.

 

Support for NQ on Thursday will be 4845.

-- Rally should continue above 4845.

-- Selling activities should come back below 4845, with the next support at 4830.

NQ Guideline For Wednesday

As expected, major buy programs triggered as the market open to rescue the stock market from free-fall, continued all day on Tuesday, from the opening bell to the closing bell.

 

The buy programs is going to continue ahead of the official inclusion of the Chinese Yuan in the SDR basket, and the official launching of the SDR as a new World Reserve Currency replacing the US dollar.

 

Key resistance for NQ on Wednesday will be 4865.

-- Breaking and staying above 4865 is going to trigger some short-covering

-- Staying below 4865 is going to trigger some profit-taking selling activities. First support is now 4630.

 

Only Days Until World Money Changes Forever. Quoted from Jim Rickards article

"The International Monetary Fund (IMF) has established a plan for its special drawing rights (SDR) valuation basket to be revised at midnight on September 30. This IMF plan has laid the foundations for a new monetary standard based on world money.

 

While these SDR plans might seem complex, they’re actually not complicated. People will make it complicated or make it sound confusing but the Federal Reserve has a printing press, they can print dollars. The IMF also has a printing press and can print SDRs. It’s just world money that could be handed out and could be used to cause inflation."

NQ Guideline For Tuesday

A bearish day in the stock market on Monday with NQ opening with a gap-down below breakout price level on the daily chart, 4830, and then remained below 3830 all day. The Dow futures was even more bearish with the low of the day just sitting right at lower bear flag channel that was formed starting about two weeks ago.

 

Major stock indices including the Dow, the S&P and NQ are setting up a very extreme bearish divergence as can be seen on the daily chart. However, the October selloff is not a guaranteed outcome simply because we do not have a free market. Central banks can still intervene to keep the stock and the bond market elevated by printing limitless amount of money to support the market. The key questions is, how would they do against a rapidly intensifying global deflationary forces. 

 

For NQ, Monday low stayed above its 20-moving average on the daily chart (4800), and with its 50-moving average just slightly below it (4760), NQ would need to break below both the 20 and the 50 moving average to trigger an avalanche of selling algorithm. Until then, selling could remains under control.

 

Support for NQ on Tuesday will be 4800 and resistance at 4830.

 

Deutsche Bank shares sink 7.54% to a new low

NQ Guideline For Monday

A profit-taking pullback down day for the equity market on Friday. Whether or not pullback down move has ended on Friday will depends on where it trades in relation to its short-term inflection price level on Monday.

 

For NQ, key inflection price level on Monday will be 4860.

-- Trading above 4860 is an indication NQ pullback down move has ended, and that it is resuming its uptrend again. 

-- Trading below 4860 implies pullback is still in progress, and the next support is 4830 area, a critical support area where NQ should resumes its rally. A clear violation of 4830 support is bearish as it could bring in heavy selling activities. 

 

OECD Warns Fed, BOJ, ECB of Asset Bubbles, “Risks to Financial Stability,” Pinpoints US Stocks & Real Estate

NQ Guideline For Friday

Several markets opened  with a gap-up on Thursday, including NQ, Gold, Silver, Crude Oil, just to name a few. Without any new buyers and sellers, NQ then traded sideways all day.

 

Central banks will continue to support the stock market with massive buy programs just to ensure the stock market remains high in order to deny Trump Presidency and elect bankers-friendly Hilary.

 

If the Fed can have their way, going forward into the November Presidential election, look for the stock market to continue to go up, look for Gold and Silver market to continue to go up, look for the Crude Oil market to continue to go up ad the Fed is going to do whatever it takes to keep the ever intensifying global deflationary forces of deflation at bay. Look for the US dollar to decline as the Fed is not likely to change it policy anytime before the US Presidential election.

 

On the short term time frame, key support for NQ on Friday will be 4830.

-- If NQ stays above 4830 on Friday, selling should mainly be profit-taking activities ahead of the weekend.

-- Should NQ break-back below 4830, selling activities is likely to come back.

 

NQ Guideline For Friday

Now that the Fed policy meeting for September is over and done, the markets can now trend again. With no change in the Fed policy, as expected, and a back door QE through the BOJ, the stage is set for the equity market to rally, for Gold and Silver market to rally, for crude oil to rally, and the US dollar to decline.

 

For now, the Fed will continue to use "forward guidance", essentially mean lying to the market participant that they will raise rates. There is no way for the Fed to ever be able to raise interest rate without crashing the market. Although it may be part of the Fed plan to crash the market to usher in the new world reserve currency, the IMF world money called the SDR.

 

Unless the Fed is going to crash the stock market in order to usher in the new world reverse currency, the SDR, to replace the US dollar, look for the stock market to continue to rally.

 

On the 5-minute timeframe, key support on Thursday will be 4820.

-- As long as NQ can stay above 4820 the current rally should continue. However, the market may just chop around following a large rally like on Wednesday.

-- If for any reason NQ trade back below 4820, look for NQ to trade back to 4795 support.

NQ Guideline For Wednesday

The market simply traded sideways on Tuesday ahead of the BOJ and the FOMC policy decision on Wednesday.

Although most market participant do not believe the Fed is going to change policy this time around, selling remains inactive because they do not want to get squeezed by the Fed buy programs, which they are likely going to do after their announcement on Wednesday. Whether or not they can keep deflationary forces under control only time will tell.

 

Key support for NQ going into Wednesday will be 4795.

-- Trading above 4795 should keep selling under control.

-- Trading back below 44795 is likely to trigger selling, but strong support remains at 4700.

 

NQ Guideline For Tuesday

Ahead of the Fed meeting this week the major stock market indices in the US traded down, with NQ selling down quite hard, the forces of deflation overwhelmed the Fed buy programs.

 

As seen on the daily chart, last week rally in the equity market looks choppy and countertrend, especially for the Dow and nasdaq, the pattern is setting up for a liquidation decline.

 

On the short term intraday timeframe, key inflection price level for NQ on Tuesday will be 4800.

-- Trading above 4800 is likely to keep selling in check.

-- Trading below 4800 is likely to attract selling but buy programs will be active to keep the market elevated.