The small non-farm payrolls shock the market, perfect layout for short positions as the rebound continues! Midnight thoughts for April 30th
The small non-farm payrolls saw a shocking drop, with the previous value revised from 155,000 to 147,000, market expectations were 115,000, but the actual release was only 62,000.
Multiple economic data released from the United States showed a steep decline in small non-farm payrolls, and a contraction in the first quarter GDP. Currently, CME's 'Fed Watch' indicates a 92.3% probability that the Federal Reserve will keep interest rates unchanged in May, with a 7.7% probability of a 25 basis point rate cut. The probability of maintaining rates until June is 35.1%, with a cumulative probability of a 25 basis point cut at 60.2%, and a 50 basis point cut at 4.8%.
The preliminary estimates released by the U.S. government on Wednesday indicated that the inflation-adjusted Gross Domestic Product (GDP) for the first quarter was at an annualized rate of -0.3%, lower than the market expectation of 0.4%, and far below the average growth rate of about 3% in the previous two years. This is the weakest economic growth in the U.S. since the first quarter of 2022. Negative growth in U.S. GDP is rare, occurring only three times in the past decade.
The strategy for the day was publicly shared after the release of the small non-farm payrolls and has been realized. The market saw a drop of nearly 1600 points, and the short position for Ethereum was also very precise! It could easily secure over 50 points! After a rebound in U.S. stocks, the short position moved to a stop loss at 94000, which has now been forced to take profit, with nearly 2000 points secured in the day! The data looks so bad that those who did not get in are continuing to short the rebound! The upper resistance levels are at 94600, 95200, 95800, and 97000, while the lower support levels are at 92700, 91600, 90500, and 88400.
Midnight thoughts for April 30th: Aggressive traders can enter short positions during the rebound at 94300-94600, while conservative traders should enter at 95200-95700, with a stop loss near 96300, targeting around 93500-92700, and if broken, aiming for around 92000-91600, holding some positions depending on the situation!
Midnight thoughts for April 30th for Ethereum: Aggressive traders can enter short positions during the rebound at 1790-1820, while conservative traders should enter near 1850, with a stop loss above 1870, targeting around 1750-1720-1700, and if broken, aiming for around 1670-1650.
The small non-farm payrolls shock the market, and the large non-farm payrolls won't look good either. Currently, the market expects a particularly low probability of rate cuts in the next two months, so everyone should be cautious about chasing the rally!
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