Nasdaq What Now Episode 18

Who’s In The Nasdaq And What Are They Doing?

A Drug addict running a drug store will need self-control. If not, he’s Dead..

Hey Readers, It’s almost the end of May and the Nasdaq100 has been really unpredictable. The month of May, hmm.. we hit a wall and this wall brought in the bulls. This is what happened in the past week.

The 23rd of May, 2022 was a pretty good day for me. I remember just having the market at 12,000 and I was looking to sell to at least 11866. This was the first sign of the bulls I got. I took a sell from 11975 all the way down. Great trade, great day, and great start of the week. The next day, I realized that the Nasdaq100 was still in a range. The market kept making HLs (Higher -lows) and it never went past 11490 again. Listen, the market’s structure is all that should be your focus when trading.. The Nasdaq100 opened with a huge gap for Tuesday and that was a bull warning. I guess the bulls kept warning us they would be coming back ever since but we failed to heed. Well, “I”—Not “we”..  Nothing much happened on Tuesday and I learnt that even if there’s an unfinished business always, stick with the trend..

Wednesday, I feel Wednesday’ in Nasdaq100 are days to anticipate. The markets volatility on Wednesdays are incomparable. I highly believe the market starts on Wednesday and ends on Thursday night. Haha.. Anyway, the 25th of May was a bulls calling. Thanks to the FOMC, The bulls found their strength.

On Thursday, The bulls broke past the range and we finally got an uptrend. Finally, Friday—The uproar of the bulls. The Nasdaq100 is currently at 11712. Since we ended bullish—I can’t help but see more bullishness for next week. At least till the end of May.

Going the daily TF, The Nasdaq is more or less likely to get to 13,000 before any other resistance is made. Fingers crossed. There’s the Memorial day on Monday. So we might not get much to work with. However, let’s see what Tuesday holds.

Nasdaq100 High Impact News For 30th May-3rd Of June, 2022

Monday, May 30, 2022 (All Day) – United States – Memorial Day. If you’re wondering what the memorial day is about, It’s a day on which those who died on active service are remembered, usually the last Monday in May.

Tuesday, May 31, 2022 (15:00) – CB Consumer Confidence.. Conference Board (CB) Consumer Confidence measures the level of consumer confidence in economic activity. It is a leading indicator as it can predict consumer spending, which plays a major role in overall economic activity. Higher readings point to higher consumer optimism. A higher than expected reading should be taken as positive/bullish for the USD, while a lower than expected reading should be taken as negative/bearish for the USD.

Wednesday, June 1, 2022 (13:15) – ADP Non-Farm Employment Change.. The ADP National Employment Report is a measure of the monthly change in non-farm, private employment, based on the payroll data of approximately 400,000 U.S. business clients. The release, two days ahead of government data, is a good predictor of the government’s non-farm payroll report. The change in this indicator can be very volatile. A higher than expected reading should be taken as positive/bullish for the USD, while a lower than expected reading should be taken as negative/bearish for the USD.

(15:00) – ISM Manufacturing PMI.. The Institute of Supply Management (ISM) Manufacturing Purchasing Managers Index (PMI) Report on Business is based on data compiled from monthly replies to questions asked of purchasing and supply executives in over 400 industrial companies. For each of the indicators measured (New Orders, Backlog of Orders, New Export Orders, Imports, Production, Supplier Deliveries, Inventories, Customers Inventories, Employment, and Prices), this report shows the percentage reporting each response, the net difference between the number of responses in the positive economic direction and the negative economic direction and the diffusion index. Responses are raw data and are never changed. The diffusion index includes the percent of positive responses plus one-half of those responding the same (considered positive). The resulting single index number is then seasonally adjusted to allow for the effects of repetitive intra-year variations resulting primarily from normal differences in weather conditions, various institutional arrangements, and differences attributable to non-moveable holidays. All seasonal adjustment factors are supplied by the U.S. Department of Commerce and are subject annually to relatively minor changes when conditions warrant them. The PMI is a composite index based on the seasonally adjusted diffusion indices for five of the indicators with varying weights: New Orders –30% Production –25% Employment –20% Supplier Deliveries –15% and Inventories — 10%. A higher than expected reading should be taken as positive/bullish for the USD, while a lower than expected reading should be taken as negative/bearish for the USD.

(15:00) – JOLTS Job Openings.. A survey done by the US Bureau of Labor Statistics to help measure job vacancies. It collects data from employers about their businesses’ employment, job openings, recruitment, hires and separations.
JOLTS defines Job Openings as all positions that are open (not filled) on the last business day of the month. A job is “open” only if it meets all three of the following conditions:
1. A specific position exists and there is work available for that position.
2. The job could start within 30 days, whether or not the establishment finds a suitable candidate during that time.
3. There is active recruiting for workers from outside the establishment location that has the opening.
A reading that is stronger than forecast is generally supportive (bullish) for the USD, while a weaker than forecast reading is generally negative (bearish) for the USD.

Thursday, June 2, 2022 (13:15) – ADP Non-Farm Employment Change. 

(13:30) – Initial Jobless Claims.. Initial Jobless Claims measures the number of individuals who filed for unemployment insurance for the first time during the past week. This is the earliest U.S. economic data, but the market impact varies from week to week. A higher than expected reading should be taken as negative/bearish for the USD, while a lower than expected reading should be taken as positive/bullish for the USD.

(16:00) – Crude Oil Inventories.. The Energy Information Administration’s (EIA) Crude Oil Inventories measures the weekly change in the number of barrels of commercial crude oil held by US firms. The level of inventories influences the price of petroleum products, which can have an impact on inflation. If the increase in crude inventories is more than expected, it implies weaker demand and is bearish for crude prices. The same can be said if a decline in inventories is less than expected. If the increase in crude is less than expected, it implies greater demand and is bullish for crude prices. The same can be said if a decline in inventories is more than expected.

Friday, June 3, 2022 (13:30) – Non-Farm Payroll.. Nonfarm Payrolls measures the change in the number of people employed during the previous month, excluding the farming industry. Job creation is the foremost indicator of consumer spending, which accounts for the majority of economic activity. A higher than expected reading should be taken as positive/bullish for the USD, while a lower than expected reading should be taken as negative/bearish for the USD.

(13:30) – Unemployment Rate.. The Unemployment Rate measures the percentage of the total work force that is unemployed and actively seeking employment during the previous month. A higher than expected reading should be taken as negative/bearish for the USD, while a lower than expected reading should be taken as positive/bullish for the USD.

(15:00) – ISM Non-Manufacturing PMI.. The Institute of Supply Management (ISM) Non-Manufacturing Purchasing Managers’ Index (PMI) (also known as the ISM Services PMI) report on Business, a composite index is calculated as an indicator of the overall economic condition for the non-manufacturing sector. The NMI is a composite index based on the diffusion indexes for four of the indicators with equal weights: Business Activity (seasonally adjusted), New Orders (seasonally adjusted), Employment (seasonally adjusted) and Supplier Deliveries. A reading above 50 percent indicates the non-manufacturing sector economy is generally expanding; below 50 percent indicates the non-manufacturing sector is generally contracting. The Non-Manufacturing ISM Report on Business is based on data compiled from monthly replies to questions asked of more than 370 purchasing and supply executives in over 62 different industries representing nine divisions from the Standard Industrial Classification (SIC) categories. Membership of the Business Survey Committee is diversified by SIC category and is based on each industry contribution to Gross Domestic Product (GDP). A higher than expected reading should be taken as positive/bullish for the USD, while a lower than expected reading should be taken as negative/bearish for the USD.

All economic data are credited to investing.com


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