The Rooster Call: Fed Taper Likely to Continue

Hit the Mark Trading’s Brief Review of Overnight Market Action Setting the Tone for the Trading Day

Good morning, traders! Today’s Employment Situation Report showed 192,000 new jobs were created in March. This is market positive news. ES has moved higher after the announcement hitting 1892.

Today’s report provides the market with more evidence the FED taper will continue. The FED has said low interest rates are here for a long time. All in all a favorable backdrop for the US economy. The Euro started rising at 08:36AM perhaps on the belief that if the US economy is getting better this will spill-over to the Euro zone. Since today is Friday, we still keep an eye on the Euro in the last hour of European trading. More often than not price falls during this window.

Germany manufacturing orders climbed 0.6% in February. better than expected and a market positive.

Today’s Reports and FED Activity

08:30AM ET – Employment Situation Report

Overnight/Pre-Market

  • Equity index futures rose ahead of the Employment Report. All moves are incremental.
  • Crude oil consolidating. Higher today looking like potential $102 test.
  • Gold inched higher.
  • Soybeans inched higher in consolidation.
  • Corn very quiet. Allendale reports China cancelled purchases of 221,400 tonnes of US corn last week based on genetically modified contamination.
  • Coffee quiet.
  • Cotton touched a bench mark and might move higher. If you are in the Cotton trade, monitor your stops.
  • Bonds quiet after the Employment Report.
  • US dollar higher after the Employment Report.
  • Yen super quiet.

Day Trader Bench Marks

Intraday ES Floor Pivots – Using 24 hour electronic market hours 1800-1715 ET.

R3: 1901.50
R2: 1894.50
R1: 1889.50

Main floor pivot: 1882.50

S1: 1877.50
S2: 1870.50
S3: 1865.50

Intraday Euro Floor Pivot – Using 24 hour electronic market hours 1800-1700 ET.

R3: 1.3898
R2: 1.3853
R1: 1.3786

Main floor pivot: 1.3741

S1: 1.3674
S2: 1.3629
S3: 1.3562

Think About This!

A rising Euro is a market positive for equity index futures. Don’t be surprised if the US market open takes stocks down before moving them higher.

Have a great trading day!

To learn more from Martin, visit HitTheMarkTrading.com to join his mailing list and receive blog updates.