‘I know one thing, that i know nothing’- Nasdaq analysis pre- CPI.

The header is not literal. It is an idea that we need to keep an open mind. We should not follow established views blindly. We have to examine everything through our own eyes and see if things make sense. Also accept that we maybe wrong sometimes and be open to change our views when our ideas are proven wrong.

‘An unexamined life is not worth living’- Socrates

The above daily chart of Nasdaq shows a bullish candle which is most likely has changed the market trend. Now for the last few days, the price is in a consolidation and positions being accumulated within the range of the bullish candle. If price was very bullish, then the price will never go below the current low of the range. It would suggest that the market makers do not want people wanting to enter the rally to get a good entry to get long. More likely following the release of the CPI, price can take out liquidity within the current dealing range (see below) before moving higher. This is our view of the market in short.

If price takes out the sellside liquidity of the current dealing range and closes up strongly, then we are going to maintain our bullish views as well. But if price closes below the current range, then the current bullish view would be called into question. So we now have a defined framework for dealing with the market as we go into one of the volatile sessions of the summer.

We have conviction behind our bullish view, which is why we entered into a TQQQ position in the momentum portfolio which is a more aggressive portfolio than the strategic portfolio. If you want to check out the portfolios, you may by clicking the following link https://www.muffettinvestments.com/model-portfolios

This is the 4 hour chart shich shows the current dealing range. If you apply the Muffett time cycle indicator on the lower timeframe, you will notice that currently the Asian session lows are unpurged and could be targets. Price can also go to the buyzone, which we identified during the weekend as potential area to get long and finally it can purge the liquidity of the current dealling range low and close. Any of these scenarios need to happen for us to be convinced that the price action is confirming our bullish thesis. So in a way we are keeping an open mind and we are willing to change our bias depending on the market action.

How high can we go?. We are looking for a move to all time highs. This is currently at 30800 and then we are looking for a move to 31800 which would be a standard deviation projection target. Each step of the way, we will be analysing our current bias with the market action to see if the market action confirms our bias.

All analysis done in good faith and not investment advice.

May the Peace of the Lord be with you always.