8:30am (NY Time) US NF Employment Forecast 165K Previous 120K
The Trade Plan
If we get a conflicting release, then well wait and see how the market reacts first. If there is an overwhelming sentiment driving the market, well get plenty of opportunities for an entry if we just wait for 5 minutes after the release; you´ll get a much clearer view.
Please read my detailed trading strategy for this release below.
NFP Trading Strategy
Then the next step is to wait for the Unemployment Rate, which is expected to remain unchanged at 8.2%. If the Unemployment Rate were to surprise higher, were faced with an imperative decision at the time of the release.
After all of the numbers have been released, wait for the market to push and wait patiently for a decent retracement before getting in. Look for recent support/resistance areas for entry as a high impact news with various components are extremely volatile, and those who are patient will always get a chance to enter with a much better entry.
UPDATE (05/03/12 1:30pm EST)
Furthermore, considering that Fed Bernanke’s stance on QE3 and the answer he gave during last press conference indicating that 100K of job growth is still considered positive, I believe traders are going to look at 100K as the line in the sand… Here are the 3 scenarios:
Remember to follow the trade plan and take your time, if there is a typical news release that Retracement Trade is made for, it would be NFP.