By: Tom Gentile
on August 4th, 2022
Sometimes No Action is the Best Action
US Non-Farm Payrolls are due to be announced tomorrow morning.
This report always has the chance to set the tone for what one can expect for market direction now and in the coming months.
The markets have a chance of seeing price volatility due to the numbers and whether they hit expectations or not. This potential volatility that could come the markets way is a reason we believe the markets were quiet today.
Take a look at the SPY today. Can you see what happened? Neither can we.
Let’s zoom in and see if that helps seeing what happened today.
That didn’t really help that much either.
What you are seeing is a narrow range bar. That means the distance between the high and low of the day was small.
It is also what’s called a day of indecision in that there wasn’t a clear winner between the bulls or bears in that it didn’t close that dramatically higher or lower than its open price.
In Japanese parlance that is called a Doji- day.
It might be wise to hold off from trying to trade too much on an intra-day basis and let the numbers and the resultant knee-jerk reactions to it play out and then look for your spot.
App: Toms Option Tools
Market Insight articles may show images of lists of stocks meeting a variety of options parameters like Unusual Call and or Put activity or Expensive IV found on my app Toms Option Tools.
Other times I will have other charts may work to amplify my educational points.
Those options data lists, however, can be found on my app Tom’s Option Tools. Use your device to search up and download this app and get free access to the Morning Reports section of the app.
Other parts of the app are available at a premium subscription rate, but the Morning Reports Lists are yours free.