Friday, 7 February 2014

Stocks up on terrible US Non Farm Payrolls

Below is the reaction in the Nasdaq, Bund and Yen Future on the back of the bad Non Farm numbers, but we have done a full u-turn and running higher. Quite clearly the QE play is back, QE here for longer hence buy stocks, buy Bonds.

As you can see there was a push the opposite way just before the number, now clearly someone got done hard but it happens often before NFP, and sometimes they get it right so evens out at the end I guess.

Euribor Spreads haven't really done much since, and same with Short Sterling. Been pretty quiet so as usual not much continuation from the data. The fear from a day trading stand point is, if these bad numbers put back any QE tapering plans then we mite go down the very low volatility environment which will make it very tough trading wise.
However next week the main event is the UK inflation report on Wednesday, that will undoubtedly bring about a lot of volatility, so hopefully some good opps to get some trades on.

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