Non-Farm Employment NumbersThe Non-Farm Employment Numbers were released this morning at 8:30 am New York time.  This particular market report causes extreme volatility, especially when the numbers are surprising.

In the Binary Signals Skype room we had several different positions on — all low risk.  We had a Gold long position on (from Tuesday), long positions on the EURUSD, short positions on the USDJPY, both long and short positions on the Dow Jones (total risk was $20 combined on both long and short position), and one long position on the S&P 500 (for $12 of risk).

Non-Farm Employment Numbers Shock the Markets

The numbers came in and shocked the markets.  Thankfully, we relied on the Directional Volume indicator because it shows how the “big boys” are positioning themselves in the market.  On the forex trades, it was easily identifiable which direction the markets would go.  On the Dow and S&P 500, there was a little confusion (thus the long and short on the Dow, which were both low risk).  On the S&P 500, we could only get one position for low risk.

Trades were:

  • EURUSD spread 1.1140 – 1.1240 (entry at 1.1161 and it moved entire width of spread by 9am expiration)
  • USD 500 Long 2122 for $12.50 risk – lost
  • USDJPY spread 107.90-108.90 (short entry at 108.70 and it moved entire width of spread by 9am expiration)
  • Wall St 30 spread 17700-17800 (short entry at 17788 for $12 risk and it moved to 17720 by 10 am expiration)
  • Wall St 30 spread 17900-18000 (long entry at 17909 for $9 risk – lost)
  • Wall St 30 17781 Binary (short for $19.25 risk and expiration was less than 17781)

It had been a very slow week with the exception of Tuesday.  Tuesday was fantastic because we could stack trades as the magenta peaks on the higher timeframes were playing out.  Whenever the markets are moving, we stack the trades as long as we can identify where price is going.  Wednesday and Thursday were spent taking lower risk trades as the markets simply were not moving consistently.  Today, we ended the week very nicely with the Non-Farm Employment Numbers. However, the Feds are not anticipated to raise interest rates because of the shockingly low number from today’s reports.  The next highly volatile move is most likely to be the Brexit vote on June 23rd.

However, the most important aspect of today’s trading was learning to limit risk when the volatility is expected to be extremely high by using a combination of the binary options and spreads.