Hey there! My name is Jordan and I write about trading for the WOLF Financial newsletter. If you are looking for more trading tips and tricks, I guarantee you’ll enjoy my content on 𝕏, @AcetheKidTA. 

Thanks for reading!

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Happy Sunday everybody, I hope you’ve been having a great weekend! This last week wasn’t an easy week to be trading specifically with $ES_F or $SPY. Tech was definitely stronger which meant $NQ_F and $QQQ had more favorable price action, but overall was still a difficult environment to capitalize.

There were a couple really good trades to be had this week, but one stood out in specific that I don’t think many people take into consideration.

Ever heard of NFP or Non-Farm Payroll Data?

This is way more important than you might think and provided a beautiful trade opportunity on $NQ_F and $QQQ this week.

It’s also setting up for potentially a way bigger trade to come.

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NFP Data

So why is NFP data important for us traders?

Well, the data itself isn’t what’s very important for us, it’s more the levels that the data brings. The levels that are created after the data being released can be used to structure high probability swing trades or day trades.

For instance, after NFP comes out and the day closes the NFP levels will be set for that month. These NFP levels provide amazing entry points, targets and areas of influence that are worth noting and shouldn’t be ignored.

If you don’t believe me just look at these charts below.

No matter what style of trading you do, these levels are worth noting and you can see them on any ticker not just $SPY and $QQQ.

Right now $SPY has had multiple closes under NFP low, but no open and close under NFP low for December. When this does happen, I personally think that $SPY INEVITABLY has to go back to the most recent NFP level which is $575.55.

On $QQQ this is $496.60, but keep in mind $QQQ has been stronger and has gotten multiple closes above the most recent NFP levels.

So what am I looking for next? I want to see $QQQ start to displace lower and get and open and close under the December NFP low which will give me confirmation on $SPY going to the most recent NFP low to the downside.

I hope this little tip helps you guys. I didn’t know about these levels for a long time, but they have definitely helped me in my trading in terms of giving me high confluence areas of interest to look out for.

Thanks for reading and have a great week!

-Jordan

@AcetheKidTA