Binary Options Trading Tips 5-10.8 – US Non Farm Payrolls Sends S&P 500 to New Highs

Binary Options Trading Recommendation for this week –  Market Information and Trading Briefing

 

Stock markets in the US rallied into the end of the week and the Standard & Poor’s 500 Index is now trading at levels that have not been seen since May.  Market optimism was stoked by the stronger than expected Non Farm Payrolls report out of the US.  This reaction was something of a surprise, given the fact that the Unemployment Rate (which was released at the same time) surprised markets and actually showed an increase (climbing to its highest level in 5 months). 

 

       But the price activity following the data shows that investors were focused on the headline number and the S&P 500 rose by nearly 2% during the session to close at 1390.  This was a sharp reversal from activity seen earlier in the week, as the index had posted losses in the four previous trading sessions.  The Dow Jones Industrials were higher by 1.7% on the day to close back above key psychological levels at 13,095.  Trading volumes were roughly in line with the three-month average, with 6.8 billion shares changing hands.

 

Mixed Employment Data to Carry into Next Week

 

       Looking at the NFP report, we can see that 163,000 new jobs were created in the US in July, much stronger than the 64,000 increase that was seen during the previous month.  Analysts expected a rise of 100,000 new jobs, but the positive number was not a complete surprise given the strength that was seen in the ADP employment data earlier in the week.  The ISM non-manufacturing survey also beat estimates, with an increase to 52.6.  This data is significant because the services sector represents 90% of the total US economy.  The Unemployment Rate, however, was the negative point, rising to 8.3 percent.

 

       The main question as we start trading next week will be whether or not this momentum continues on Monday.  From a technical perspective, many major resistance levels were broken in the major stock markets, which is clearly suggestive of another move higher.  From a fundamental perspective, there is no key economic until the European session on Tuesday, which is when Germany will release its own set of economic data along with the Eurozone Consumer Price Index (CPI).  This will be followed by GDP out of Canada and the Personal Consumption Expenditure (PCE), which is the Federal Reserve’s preferred inflation gauge.  None of these releases is expected to set the tone for next week, so without any major news developments, expect Friday’s rally to continue at least through the first part of next week. 

 

My Trading Recommendation in 50 Words

 

Given the latest impulse move in the S&P 500, I will be looking to enter into 1 week CALL options on any signs of weakness.  The first area to watch is 1365 and I will enter into new positions on approach of this level. 

 

VN:F [1.9.22_1171]
Rating: 0.0/10 (0 votes cast)
VN:F [1.9.22_1171]
Rating: 0 (from 0 votes)