MidSession Review 06/07/12

Wake me up for the Non Farm Payroll report!!!.

European stocks declined ahead of US macro data. Stoxx50 fell 0.50% to 2,273.49, German Dax traded lower to 6,515.97 or -0.30%, the two benchmarks, Ftsemib and Ibex, European crisis' barometers fell respectively 0.54% and 1.45%. The Eur/$ cross was back to 1.2400$ mark after having traded at around 1.2700$ just a weak ago. Writing about commodities,Gold fell 1.04% to 1,592.70 and WTI lost 1.73% to 85.71.

Yesterday's volatility  has been just a dream up to now, European futures have been spending the morning session in a tight range:

Euro Stoxx 50 2,265 -2,275,

German Dax 6,503-6,537.00,

Italian Ftsemib 14,090-13,900.

Therefore, stay calm do not get nervous and wait for the market to show its cards. There should be a reason to put a trade on, a market reason not just because you get bored.

Let's have a look at few headlines coming out:

“U.S. employers are expected to have added 90,000 new workers to their payrolls, according to a Reuters survey of economists.”

” …total non-farm payrolls climbed 100,000 in June, according to a Bloomberg survey of economists.”

“Dow Jones newswires are now calling for a gain of 100k new jobs, up from the 95k job gain they were expecting prior to Thursday's round data.”

It's important to observe that in our opinion the worst outcome is a number of 100k, because it will likely be not bad enough to push the Fed off the sidelines and prompt Bernanke to  implement more stimulus.

Any upside reading could be a welcome development, but be careful cause the economy to keep up with population growth need to add at least 200k,as the WSJ pointed out, for instance a year earlier  the economy was adding 200k on a consistent basis.

Now you can make your What/If statements, having the necessary informations to evaluate the report number.

Originally posted at www.77sigmatrading.com