<aside> <img src="/icons/reorder_gray.svg" alt="/icons/reorder_gray.svg" width="40px" /> Tape Reading / NFP Protocol / NFP Homework / Running down equity
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When you are brand new you don’t trade NFP Thu/Fri. Only after 10:00am on Friday. After 10am everything resumes the way it's normally. We're back in a normal market condition where we could look for silver bullets and whatnot. Don't trade nonfarm payroll between 8:00 and 9:30 at the opening bell. After you can resume doing whatever you normally would.
We already saw the ES trade lower, Nasdaq's showing a reluctance to do that. I think it'll eventually bend the knee and do what ES has done, but it's being a little unruly.
Non-farm payroll is like a two-stage event like FOMC is. So, at 2:00pm , you have one direction, and then at 2:30, it does the opposite of whatever 2:00pm move was. That's the flavour for nonfarm payroll price delivery. Usually, the event is at 8:30; they jam it one direction, and then they start working towards the opposite direction throughout the day. If it's not that, then it's very little retracement and then sudden continuation of whatever direction it made at 8:30 into 9:30 at the opening bell. It's a small little retracement of whatever move that was, and then it really accelerates again throughout the morning. If it doesn't do either one of those things, it's going to consolidate.
We don’t care of the data numbers that were release. We focus only on the volatility. That data is all fake. It's all garbage. The people that are in positions of information, they already know all that data, and they're the ones that are fading that rally up in overnight. That's the smart money. They're selling into that rally, and now they're sitting on heavy wins, and they'll start taking some of those gains as we get below this low here. That's their first opportunity to start scaling out.
