2

PLAY
MNQ – breaking news continuation

CATALYST
NFP numbers due at 8:30 came in below prior, a bullish signal in this market

08:30:28AM
SPY
USA AVERAGE HOURLY EARNINGS (MOM) FOR DECEMBER 0.3% VS 0.4% EST; 0.4% PRIOR
BZ Wire
08:30:08AM
SPY
USA UNEMPLOYMENT RATE FOR DECEMBER 3.5% VS 3.7% EST.
BZ Wire
08:30:08AM
SPY
USA NONFARM PAYROLLS FOR DECEMBER 223K VS 200K EST; 263K PRIOR

TRADE IDEA
MNQ will touch 10940, the VPOC on the 20day, and possibly go higher intraday

SETUP QUALITY AND VARIABLES
“A”
• The market is responding strongly to this type of news, and index futures are seeing continuation around these key economic news releases.
• The Fed wants to see unemployment rise and wage growth drop before it begins to cut rates.
• This negative news is bullish in this market
• VPOC at 10940 on 20day chart was touched by algos when the news printed
• 10980 marks the top of most relevant profile (secondary target)
• After news broke price consolidated and held above yesterdays LOD area 10816 and this morning’s VWAP with conviction

PLAN
• Allow news to break, if bullish look for a place to get long for continuation targeting 10940 and 10990 zone. If bearish news had hit, then we would be targeting 10700 intraday.
• Stop is break and hold below consolidation 10816

REASONS TO SELL
• Target hit
• Stopped out

EXECUTIONS AND PRICE ACTION
• News broke and algos touched price 10940 which was drawn on chart beforehand (VPOC)
• I was almost late to this, but got long just above vwap, stop was just below
• Price moved to predetermined target with volume expansion
• Took profit just below target, price stalling.

KEY TAKEAWAYS
• I sold too early but did a decent job overall.
• New volume profile chart adjustments helped me commit to this trade. Especially since the algo-news-spike was over my pre-drawn level by only a couple ticks
• Get a better price by being a little faster to enter when convicted in the trade