Strategy Video: Can NFPs Reinforce a Change in Volatility, Market Trend?

By DailyFx | Updated July 31, 2014 AAA

DailyFX.com -

Talking Points:

• We have seen the first market-wide volatility event in 6 months - and only the fourth in 3 years

• The S&P 500 dropped 2 percent, high-yield assets tumbled and volatility measures surged higher

• Initiating a true change in market bearing requires conviction, and the NFPs can help feed it

Expect breakouts? Use the DailyFX Breakout 2 strategy to signal or confirm setups!

We have seen the first, serious market-wide run on speculative positioning in six months. A drop for global equities, high-yield assets tumble, dollar rally and volatility measure surge marks a critical next step towards a more systemic change in sentiment. We have been here before however. This is the fourth 'shock' to the system since the beginning of 2012. In the previous iterations, the jolt was substantial but short-lived. To tip such a mature trend - even one as steeped in skepticism and fundamental doubt as this one - the market needs to be forced. With an important NFPs and inflation figure due today, perhaps that is possible. We look at burgeoning opportunity and its trade potential in today's Strategy Video.

Sign up for John’s email distribution list, here.

Related Forex Analysis
  1. NZD/USD Technical Analysis: Short Trade Triggered Sub-0.80
    Forex News

    NZD/USD Technical Analysis: Short Trade Triggered Sub-0.80

  2. Sterling is trading sideways in a box – BBH
    Forex News

    Sterling is trading sideways in a box – BBH

  3. EUR/USD: Bearish pressure to persist while below 1.24 - FXStreet
    Forex News

    EUR/USD: Bearish pressure to persist while below 1.24 - FXStreet

  4. Will EURCHF Floor Break? November 30 Referendum in Focus
    Forex News

    Will EURCHF Floor Break? November 30 Referendum in Focus

  5. Specs increase aggregate long USD to a new record high - TDS
    Forex News

    Specs increase aggregate long USD to a new record high - TDS

Trading Center