A Red Letter Day For Emini Index Traders
Friday was a red letter trading day for index traders, as the primary US indices sold off strongly driven by a number of factors, and delivering terrific opportunities across the timeframes. This was a day for intraday scalping traders to make money and nowhere better than on the non time based charts of renko and the NinjaTrader tick charts using the Tickspeedometer, with the factors driving the sell off many and varied.
First, we had the dire economic news from Germany with the flash manufacturing PMI data continuing the downwards trend of the last few months, and moving deep below the fulcrum of 50, and worse than expected against the forecast. As the economic powerhouse of Europe, not only is this significant in the EU, but also suggests worldwide demand may be slowing, and coupled with the Fed comments and dovish tone, combined to build bearish sentiment across global equity markets. Second, we have the bond markets, and with the bond yield now inverting, this too is signalling a slowdown in longer term interest rates, and the possibility of a slowing in the US economy.
Disclaimer: Futures, stocks, and spot currency trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in ...
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