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.