Friday, February 7, 2014

A.M. Observations

Of course the bog news this morning was the Non-Farm Payrolls second big miss at 113k vs consensus of 180k with Decembers 74k only revised up 1k to 75k, the unemployment rate is 6.6%.

This sent ES is a nearly 30 point instant knee jerk.
 We also have a negative divegrence, but this is premarket.

However after seeing yesterday's 5 min negatives, I expected some downside coming, take a look at the USD/JPY below.

I would say that's clearly negative and if that isn't enough, as strong as the 15,60 min charts grew which was pretty amazing, it smells like someone sniffed out the jobs number yesterday, in any case all 3 major Index futures have 5 min charts like this and I'd bet on these for a quick short every time.

5 min ES matches perfectly with what we saw yesterday afternoon.

Maybe there will be some time to open some additional trades, but I still want to be careful with the way those longer charts just grew in strength exponentially, that move is still coming and it looks to be a monster.

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