Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

tradingwizzard

NFP Number and Dow Jones Reaction

Recommended Posts

it seems that nobody knows how to interpret data anymore....

 

let's see TL members on NFP and Dow Jones this Friday

 

will Dow close Friday positive if NFP beats estimates or not?

 

I would say yes....

 

TW

Edited by tradingwizzard

Share this post


Link to post
Share on other sites

Technically, the market is due an oversold bounce. A beat on the NFP would certainly fuel that. If one trusts the ADP numbers, there may be some question if a beat on the NFP is likely. If market expectations are correct and the number comes in at 175 - 180K that is still just a bandaid for the horrid number in December, but it would still allow the FED to continue the reduction in QE.

 

I don't think that NFP or QE is what is driving this correction. I would also think that a rally on an NFP beat will get sold in the following week. I love trading to the downside, it may just be that's my bias raising it's ugly head (Ha!). We shall see.

 

As always, my plan is to play it as it comes... 5 minutes at a time.

Share this post


Link to post
Share on other sites
Technically, the market is due an oversold bounce. A beat on the NFP would certainly fuel that. If one trusts the ADP numbers, there may be some question if a beat on the NFP is likely. If market expectations are correct and the number comes in at 175 - 180K that is still just a bandaid for the horrid number in December, but it would still allow the FED to continue the reduction in QE.

 

I don't think that NFP or QE is what is driving this correction. I would also think that a rally on an NFP beat will get sold in the following week. I love trading to the downside, it may just be that's my bias raising it's ugly head (Ha!). We shall see.

 

As always, my plan is to play it as it comes... 5 minutes at a time.

 

nice answer, gave it a like .....

 

I just want to add that if the NFP is missing, won't markets jump on the long side saying Fed must do something?

 

TW

Share this post


Link to post
Share on other sites
Yes. correlations and reactions are coming back more to how they were say 5 years ago.

 

actually I'm not sure about that anymore...if anything I would say correlations do not exist anymore....or, to put it more frankly, they exist or are valid until they don't....and at that moment stop losses are triggered

 

TW

Share this post


Link to post
Share on other sites
nice answer, gave it a like .....

 

I just want to add that if the NFP is missing, won't markets jump on the long side saying Fed must do something?

 

TW

 

I think the market read is that the FED is committed to the taper. If it were a huge miss... say like December... that may drive that kind of speculation (who knows). As usual, the market would have to bring on some more misery to get the point across. Any miss on the number (seems to me) would weigh in for the sell side.

Share this post


Link to post
Share on other sites
I think the market read is that the FED is committed to the taper. If it were a huge miss... say like December... that may drive that kind of speculation (who knows). As usual, the market would have to bring on some more misery to get the point across. Any miss on the number (seems to me) would weigh in for the sell side.

 

well, only one day to go and we shall see...

 

TW

Share this post


Link to post
Share on other sites
even though I am bullish equities, I don't think it is that easy to travel.....then again, it depends of the number of course :Q)

 

TW

 

The number won't make a difference. It is going higher. The market wants you to think what you are thinking.

 

A lot of people got short today.

Share this post


Link to post
Share on other sites

like mentioned at the start of the thread, no one really know what data means anymore...good data is bad data, bad data is good data, who the heck knows...

 

so NFP missed and sent Dow +165 points higher...excellent :)

 

correlations suck :cool:

 

TW

Share this post


Link to post
Share on other sites
like mentioned at the start of the thread, no one really know what data means anymore...good data is bad data, bad data is good data, who the heck knows...

 

so NFP missed and sent Dow +165 points higher...excellent :)

 

correlations suck :cool:

 

TW

"Bizzaro World"... trade it as it happens. Had a good day today (a good week actually)... nice to see volatility back.

Share this post


Link to post
Share on other sites
like mentioned at the start of the thread, no one really know what data means anymore...good data is bad data, bad data is good data, who the heck knows...

 

so NFP missed and sent Dow +165 points higher...excellent :)

 

correlations suck :cool:

 

TW

 

Correlations work perfectly. Unfortunately, the things you want to be correlated didn't turn out to be correlated. Sort of like concluding that your neighbor walking the dog in the morning has some causal effect on the sun rising, because they do tend to occur at the same time.

Share this post


Link to post
Share on other sites
Correlations work perfectly. Unfortunately, the things you want to be correlated didn't turn out to be correlated. Sort of like concluding that your neighbor walking the dog in the morning has some causal effect on the sun rising, because they do tend to occur at the same time.
:rofl: :rofl: LOL LOL

Share this post


Link to post
Share on other sites
Correlations work perfectly. Unfortunately, the things you want to be correlated didn't turn out to be correlated. Sort of like concluding that your neighbor walking the dog in the morning has some causal effect on the sun rising, because they do tend to occur at the same time.

 

excellent response :(...instead of explaining something that I miss, you just blah blah some stuff.....you must be a great trader sharing your knowledge like that

 

TW

Share this post


Link to post
Share on other sites
excellent response :(...instead of explaining something that I miss, you just blah blah some stuff.....you must be a great trader sharing your knowledge like that

 

TW

 

I know how to take money from the market. I am not a great trader and wasn't trying to be smug.

 

I have no idea how to determine what you might have missed, because I have no idea how you arrived at your conclusion. In my mind we were looking at the same market, so we must have been looking at the same things. You might need someone like Rande Howe to help you arrive at different conclusions and not someone like me.

Share this post


Link to post
Share on other sites
I know how to take money from the market. I am not a great trader and wasn't trying to be smug.

 

I have no idea how to determine what you might have missed, because I have no idea how you arrived at your conclusion. In my mind we were looking at the same market, so we must have been looking at the same things. You might need someone like Rande Howe to help you arrive at different conclusions and not someone like me.

 

the idea was about correlations between NFP and Dow....your answer was about dogs and Sun if I remember correctly....I may not remember correctly though, because I read it and find it so lame I moved on to something else

 

regards,

 

TW

Share this post


Link to post
Share on other sites
the idea was about correlations between NFP and Dow....your answer was about dogs and Sun if I remember correctly....I may not remember correctly though, because I read it and find it so lame I moved on to something else

 

regards,

 

TW

 

I'll help you out.

 

You thought the direction of the dow would be impacted, somehow, by the nfp number.

 

I thought the market would go higher no matter what the NFP number was.

 

Benevolence ended.

Share this post


Link to post
Share on other sites
I'll help you out.

 

You thought the direction of the dow would be impacted, somehow, by the nfp number.

 

I thought the market would go higher no matter what the NFP number was.

 

Benevolence ended.

 

Help me out... like I need it (ha).

 

Certainly there was a technical bounce due. It may well be that this is not a correction but just another BTFD situation (it's really too soon to call this a correction). I trade the TF contract. It was clear that the sell side was exhausted (for a time). I'm sure that was evident in the ES and the YM as well. The TF buy side was not impressive... I would've liked to have seen it trade into the 1117 area (from a technical perspective, it was lack luster). The YM and the ES were a little more aggressive. I must say... I don't know (nothing new for me).

 

What do you think... "a correction" is in the works, or do we turn and go higher? I'll even give you an out... "does it matter?"

Share this post


Link to post
Share on other sites
Help me out... like I need it (ha).

 

Certainly there was a technical bounce due. It may well be that this is not a correction but just another BTFD situation (it's really too soon to call this a correction). I trade the TF contract. It was clear that the sell side was exhausted (for a time). I'm sure that was evident in the ES and the YM as well. The TF buy side was not impressive... I would've liked to have seen it trade into the 1117 area (from a technical perspective, it was lack luster). The YM and the ES were a little more aggressive. I must say... I don't know (nothing new for me).

 

What do you think... "a correction" is in the works, or do we turn and go higher? I'll even give you an out... "does it matter?"

 

I think it corrected. I think the low was tested. I think es will resume it's climb to newer highs. Most or all other indices will follow or lead as the case may be.

 

It seems to be that there was a lot of buying below and there continues to be a lot of shorting which will lead to low volume upmoves which tend to be misleading and confounding.

 

There is no known good reason for the market to continue lower. Tapering is not a good reason for the market to go down. I would argue just the opposite.

Share this post


Link to post
Share on other sites
I think it corrected. I think the low was tested. I think es will resume it's climb to newer highs. Most or all other indices will follow or lead as the case may be.

 

It seems to be that there was a lot of buying below and there continues to be a lot of shorting which will lead to low volume upmoves which tend to be misleading and confounding.

 

There is no known good reason for the market to continue lower. Tapering is not a good reason for the market to go down. I would argue just the opposite.

 

I would agree... "the taper" makes no difference. Everyone has known that the taper was coming, evident and necessary (actually relieved that it happened). I watched the tepid low volume buying on Friday afternoon... no sellers. Interesting to see how next week shapes up. I think we will have some contention at higher levels (what else is new... that's what makes a market).

Share this post


Link to post
Share on other sites
I would agree... "the taper" makes no difference. Everyone has known that the taper was coming, evident and necessary (actually relieved that it happened). I watched the tepid low volume buying on Friday afternoon... no sellers. Interesting to see how next week shapes up. I think we will have some contention at higher levels (what else is new... that's what makes a market).

 

tend to agree with you here.....equities seem to be supported by good GDP numbers in Europe.....supposedly

 

TW

Share this post


Link to post
Share on other sites
tend to agree with you here.....equities seem to be supported by good GDP numbers in Europe.....supposedly

 

TW

 

Looks like the good GDP numbers not only supported the market, but it pushed the market to a new high too.

Share this post


Link to post
Share on other sites
Looks like the good GDP numbers not only supported the market, but it pushed the market to a new high too.

 

I am quite curious to see next week's NFP and equities reaction...it seems that whatever the fundamental news, equities are being bought anyways....so coming to the Dow 100,00 thread :)

 

TW

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Topics

  • Posts

    • HLF Herbalife stock, watch for a bull flag breakout above 9.02 at https://stockconsultant.com/?HLF
    • Date: 1st April 2025.   Will Gold’s Rally Hold Strong as New Trade Tariffs Take Effect Tomorrow?   Gold continues to increase in value for a sixth consecutive day and is trading more than 17% higher in 2025. Amid fear of higher inflation, a recession and the tariffs war escalating investors continue to invest into Gold pushing demand higher. The trade policy from April 2nd onwards continues to be a key factor for the whole market. Can Gold maintain its upward trend? Trade Policy From Tomorrow Onwards Starting as soon as tomorrow, a 25% tariff will be imposed on all passenger cars imported into the United States. While this White House policy is anticipated to negatively affect European industrial performance, it will also lead to higher transportation and maintenance costs for everyday American taxpayers. The negative impact expected on both the EU and US is one of the reasons investors continue to buy Gold. Additionally, last month, President Donald Trump announced reciprocal sanctions against any trade partners that impose import restrictions on US goods. Furthermore, tariffs on products from Canada and the EU could increase even more if they attempt to coordinate a response. Overall, investors continue to worry that new trade barriers will prompt retaliatory measures, particularly from China, the Eurozone, and Japan. Any retaliation is likely to escalate the trade conflict and prompt another reaction from the US. Experts at Goldman Sachs and other investment banks warn that this will lead to rising inflation and unemployment. They also caution that it could effectively halt economic growth in the US.   XAUUSD 1-Hour Chart   The Weakness In The US Dollar Another factor which is allowing the price of XAUUSD to increase in value is the US Dollar which has been unable to maintain any bullish momentum. Despite last week’s Core PCE Price Index rising to its highest level since February 2024, the US Dollar has been unable to see any significant rise in value. Due to the US Dollar and Gold's inverse correlation, the price of Gold is benefiting from the Dollar weakness. Investors worry that new trade barriers will prompt retaliatory measures from China, the Eurozone, and Japan, potentially escalating the conflict. Experts at The Goldman Sachs Group Inc. believe that such actions by the US administration will drive rising inflation and unemployment while effectively halting economic growth in the country. Can Gold Maintain Momentum? When it comes to technical analysis, the price of Gold is not trading at a price where oscillators are indicating the instrument is overbought. The Relative Strength Index currently trades at 68.88, outside of the overbought area, since Gold’s price fell 0.65% during this morning’s session. However, even with this decline, the price still remains 0.40% higher than the day’s open price. In terms of fundamental analysis, there continues to be plenty of factors indicating the price could continue to rise. However, the price movement of the week will also partially depend on the employment data from the US. The US is due to release the JOLTS Job Vacancies for February this afternoon, the ADP Non-Farm Employment Change tomorrow, and the NFP Change and Unemployment Rate on Friday. If all data reads higher than expectations, investors may look to sell to lock in profits at the high price. Key Takeaway Points: Gold’s Rally Continues – Up 17% in 2025 as investors seek safety from inflation, recession fears, and trade tensions. Trade War Impact – New US tariffs and potential retaliation from China, the EU, and Japan drive uncertainty, boosting Gold demand. Weak US Dollar – The Dollar’s struggle supports Gold’s rise due to their inverse correlation. Gold’s Outlook – Uptrend may continue, but US jobs data could trigger profit-taking. Always trade with strict risk management. Your capital is the single most important aspect of your trading business.   Please note that times displayed based on local time zone and are from time of writing this report.   Click HERE to access the full HFM Economic calendar.   Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding of how markets work. Click HERE to register for FREE!   Click HERE to READ more Market news.   Michalis Efthymiou HFMarkets   Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
    • Date: 31st March 2025.   Trump Confirms Tariffs on All Countries, Sending Stocks Lower.   The NASDAQ continues to trade lower due to the US confirming the latest tariffs will be on all countries. In addition to this, bearish volatility also is largely due to the higher inflation data from Friday. The NASDAQ declines to its lowest price since September 11th 2024. Core PCE Price Index - Inflation Increases Again! The PCE Price Index read 2.5% aligning with expert forecasts not triggering any alarm bells. However, the Core PCE Price Index rose from 0.3% to 0.4% MoM and from 2.7% to 2.8% YoY, signalling growing inflationary pressure. This increases the likelihood that the Federal Reserve will maintain elevated interest rates for an extended period. The NASDAQ fell 2.60% due to the higher inflation reading which is known to pressure the stock market due to pressure on consumer demand and a more hawkish Federal Reserve. Boston Fed President Susan Collins recently commented that tariffs could drive up inflation, though the long-term impact remains uncertain. She told journalists that a short-term spike is the most probable outcome but believes the current pause in monetary policy adjustments is appropriate given the prevailing uncertainties. Although, certain investment banks such as JP Morgan actually believe the Federal Reserve will be forced into cutting rates. This is due to expectations that the economy will struggle under the new trade policy. For example, JP Morgan expects the Federal Reserve to delay rate cuts but will quickly cut towards the end of 2025. Market Risk Appetite Takes a Hit! A big factor for the day is the drop in the risk appetite of investors. This can be seen from the VIX which is up almost 6%, Gold which is trading 1.30% higher and the Japanese Yen which is the day’s best performing currency. Most safe haven assets, bar the US Dollar, increase in value. It is also worth noting that all indices are decreasing in value during this morning's Asian session with the Nikkei225 and NASDAQ witnessing the strongest decline. Previously the stock market rose in value as investors heard rumours that tariffs would only be on certain countries. This bullish swing occurred between March 14th and 25th. Over the weekend, President Donald Trump indicated that the upcoming tariffs would apply to all countries, not just those with the largest trade imbalances with the US. NASDAQ - Technical Analysis In terms of technical analysis, the NASDAQ continues to obtain indications that sellers control the price action. The price opens on a bearish price gap measuring 0.30% and trades below all Moving Averages on all timeframes. The NASDAQ also trades below the VWAP and almost 100% of the most influential components (stocks) are declining in value.     The next significant support level is at $18,313, and the resistance level stands at $20,367.95. Key Takeaway Points: NASDAQ falls to its lowest since September 2024 as the US confirms tariffs on all countries, adding to inflation concerns. Core PCE inflation rises to 0.4% MoM and 2.8% YoY, increasing the likelihood of prolonged high interest rates. Investor risk appetite drops as VIX jumps 6%, gold gains 1.3%, and safe-haven assets outperform. NASDAQ shows strong bearish momentum, trading below key technical levels with support at $18,313 and resistance at $20,367.95. Always trade with strict risk management. Your capital is the single most important aspect of your trading business.   Please note that times displayed based on local time zone and are from time of writing this report.   Click HERE to access the full HFM Economic calendar.   Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding of how markets work. Click HERE to register for FREE!   Click HERE to READ more Market news.   Michalis Efthymiou HFMarkets   Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
    • PM Philip Morris stock, top of range breakout at https://stockconsultant.com/?PM
    • EXC Exelon stock, nice range breakout at https://stockconsultant.com/?EXC
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.