Non Farm Payroll Day Trading Strategy

Our day trading strategy this morning involved Non Farm Payroll news.  All eyes are on the US Jobs data to be released at 830am EST today. We begin our day with the grand-daddy of all the news event, Non Farm Payrolls at 830am EST. 

This news event is tough to trade for a few reasons. First, since everyone watches this event the markets usually have already priced in the expected moves ahead of time, so expect slop and chop if the report comes out within expectations. Second, there are numerous reports inside this report, such new jobs, hourly earnings, average work week, and the unemployment rate. It can take the markets a long time to finally process all of this different news information at 830am so we expect to see the mark get very volatile and ‘whippy’ if the market is caught off guard by the news. So, no matter what happens today we need to be patient after the 830am news comes out. It will either be as-expected and the market will chop sideways for 20 minutes and THEN move, or the report will come out outside of expectations and the markets will react violently so we need to sit on hands and wait for it to slow down a little before we jump in.

Non Farm Payrolls are one of the more challenging times to trade, so be patient, and remember we’ve had a great week, lets close it out with some high percentage trades today.