Non Farm Payroll at 92,000, unemployment rate fell to 4.4% --> $620 Profits
5 minutes NQ Emini CandleStick
Hi,
How's it going? There the non-farm payroll (NFP) today at 8:30a.m and at 10:00am. there's the ISM services index.
Obviously the NFP will overshadow any other news released today, unless there is a major political/ economic event. It's not my practice to trade during the after hours. The momemt NFP was released, price went up significantly and NQ opened with a gap up. However, experience cautions me to wait for more price action before jumping into the trade. Novice traders will be tempted to go long at this instance. There are more than several occassions when price actually went against the pre-market movements.
Well, my hunch was correct and price began to plunge, trying to close the gap at around 9:35 am. I knew this was goidng to be a big move downwards, and I shorted 1 contract at 1719, there was a rebound when the gap closed and price action still looked weak, I shorted another 2 contracts at 1718, my stop loss at 1722, pretty tight. ... My profit target was at 1708, the support established by the low of the previous day. At 11:15 am, I am out with $620 profits...Price continued to plunge even further,... but I wasn't about to kill myself over it... Greed is deadly..
The Fundamentals ( From Briefing.com)
The unemployment rate fell to a five-year low of just 4.4%. Non-farm payrolls were up a slighty smaller than expected 92,000, but the September increase was revised sharply higher to a gain of 148,000 from an originally reported 51,000. That produced an average gain of 120,000 for the two months, in line with the recent trend.
Hourly earnings rose a solid 0.4% as well. This has some modest inflationary implications, but the boost to consumer spending power is more important at this time. Wages are up 3.9% over the past year (and closer to a 5% rate in recent months) and payrolls are rising at a steady 1% annual rate. Those gains are enough to keep consumer spending rising at a 2% to 3% real rate. The employment data didn't eliminate the concerns about the economy, but they helped.