You got to love the market, there no other place on earth for such uncertainty, exuberance and instant disappointment, all in a few seconds time. Which can be a unique opportunity for experienced traders and a trap for novice ones, so the main theme should be caution before experience settles in. Today sentiment took a significant turn with the non-farm payrolls data, probably not a definitive or structural one, but the 0.5% cut at the end of the month by the FED is definitely of the table, and any other move will depend on what happens in the trade war topic, not to mention, the earnings season quality.
Also, traders need to keep in mind that if there isn’t any cut decision, the next chance for that option will be at mid-September, so around a month and a half, which could be too much time to wait for the dovish enthusiasts, meaning disappointment could be severe. The U.S dollar could find some support with today´s employment numbers, if of course, no Board member speaks in favour of a cut or Trump tweets “demanding” one. In any case, regardless of the holiday mood and as a market analyst used to say, “be the hammer, not the nail”, stay sharp, at all times.
Photo by Katie Harp.
