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.

You May Also Like

COMPANIES IN THIS ARTICLE
Related Forex Analysis
  1. Forex News

    Forex Sentiment & Volume Analysis - EURUSD

  2. Forex News

    Forecast: Dollar Faces NFPs, Euro Anticipating Greece and Risk Languishes

  3. Forex News

    Dollar Goes for a Nine-Month Rally with Fed Talk and NFPs on Tap

  4. Forex News

    Fed Fear Builds USD, Greece Unnerves the Euro but S&P Yet to Collapse

  5. Forex News

    The Market Risk and Liquidity Risk of an S&P 500, Financial Market Reversal

Trading Center