Thursday, January 5, 2012

NFP Friday Trade Idea

A trade may be setting up for NFP Friday. This development is very interesting - while today NDX broke out above Jan 3rd high, DOW and SPX did not. Deja vu? Is this going to be yet another unconfirmed b/o of tech, just like many times last year? Almost all of those led to steep declines.

So we will get NFP @ 8:30 am est. If the report is less than perfect (if you know what I mean), stock index futures will sell off and may fill gaps below. Obviously, there could be a stop run just above the highs and the reversal to follow. Hourly close above those levels will constitute a breakout (in my book).

click on chart to enlarge

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