US Markets Today: Choppy, Range Bound on Jobs Data

7 April 2017 (9:15 AM EDT)

If you ever needed proof that stock markets are full of moronic, fat-fingered speculators than today’s trading pattern in the Dollar index, European markets and U.S. stock futures will provide that proof.

Around an hour ago, Nonfarm Payroll numbers and the Unemployment Rate from the U.S. economy were released. Unemployment Rate, which is more important than any other numbers, fell down to 4.5% from earlier 4.7% and it should have brought a jump in the Dollar index and U.S. stock futures. But then, such intelligent understanding is not expected from speculators who took a look at lower than estimated Nonfarm Payroll data and hit the “sell” button. The Dollar index plunged, U.S. stock futures and European indexes increased their losses. After a few minutes, it dawned on them that the Unemployment Rate has fallen and THAT is bigger, better news. quickly, the trend reversed, the Dollar index jumped back and U.S. stock futures and European markets trimmed their losses.

Now you know why markets turn volatile when important news breaks out. Headless and brainless chickens start running helter-skelter in markets, that is why.

A similar volatile trading pattern may appear in U.S. markets today, where markets may remain confused about economic reports and Trump’s strike on Syria. Is it good? Is it bad? who knows! So, those who think these events are bad; will be selling and those who consider these good reports will be buying. Overall, expect a range bound pattern in U.S. markets where major indexes will most probably trade within this week’s range.

Let markets establish a first high and low for the day, after that, whichever level is breached first- trade in that direction with the trend.

Good luck, enjoy the session!

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