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Re: Trading The NFP's
Are people still lining up to be slapped by false breakouts around NFP's?
I bet I can tell you what will happen:
2 minutes before the release the market will go one way by about 70 points
then after the numbers it will go the other way by about 70 points
then it might keep going or reverse again
whatever happens a lot of stop and limit orders are going to be hit and the dealers are going to clean up
The archives of moneytec are full of NFP horror stories (not so much big directional moves but big moves in both directions enough to take out entry and exit (i.e. stop loss) orders quickly)
Also it is very hard to do any fundamental analysis to guague what the NFP's will be. Since NFP's come mostly out of a computer model it is hard to judge what exactly has gone into this computer model. Economic conditions and actual job creation may or may not be represented in NFP's.
Last edited by novice : 06-05-2005 at 05:59.
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