Good morning/afternoon to you all.
Context
The
focus today will move away from the troubled Euro Zone and onto American
employment. The NFP number measures new employment in the US and as the American
economy drives the world economy, employment growth is an important number. The
NFP number is especially important because it takes out the seasonal effect of
farm workers, and is delivered early in the month, This is a day for news , and
momentum traders and a day when the rest of us stay out of the market. I will
cover trading the news at some stage in Trader Talk Radio but it’s not
something we will cover here. If you want an invitation to the free Trader talk
Radio webinar on Wednesday morning UK time please send me your email address and I will invite you.
Yesterday's
Report
Yesterday the market tested daily pivot and
moved down to 2 year lows. The entries weren’t as good with the lower high not
giving us a high test, or bounce of strong previous level. It was followed by a
long consolidation and then price fell this morning. The direction after the
pivot bounce was simple, but we also need a quality entry and I didn’t see one
yesterday. It was a better day to watch than to trade.
Technical
Analysis
It’s pretty simple today is NFP and we don’t
short term trade. It’s also the date from where the picture gets clearer, the
monthly pivot has crashed down and now sits only 300 pips, from price. On
Monday the weekly pivot will also fall and if price behaves normally we will
see the pivots lined up bearishly and the over extension gone. The GBP bank
holidays Mon/Tues will take away the volume but we will have the perfect short
set up in place, and during the week we should be able to find some great
entries. This is what we have been waiting for.
The
Day Ahead –
No Trading
Tip
of the day
NFP is the day to review our plans, review the
last month and focus on the new plan for the coming month.
News Today GMT
1:30pm USD Non-farm employment change 151K
This brings to and my first full week of bloging and i am thrilled to have had over 300 hits on this page. I do hope you are enjoying the content but please let me know if you would like something added or removed. In the meantime i look forward (hopefully) to an easier trading week next week.
This brings to and my first full week of bloging and i am thrilled to have had over 300 hits on this page. I do hope you are enjoying the content but please let me know if you would like something added or removed. In the meantime i look forward (hopefully) to an easier trading week next week.
All the best
PLB
No comments:
Post a Comment