Daily Outlook - April 4th, 2008

Today, U.S. Non-Farm Payroll is released at 8:30am EST. This is probably the single biggest new release that comes out each month and this month it is more important than ever. Market players are trying to get a grasp on how much further the U.S. Fed will cut rates and how bad the U.S. economy really is. Most everyone expects the report to not look good for the U.S. A poor U.S. economy seems to be pretty well priced into the market. It will be interesting to see if there are any surprises coming out of the report.

On a typical NFP(Non-Farm Payroll) day, the market is "quiet" until the report is released. Our system does not tend to do well in "quiet" markets. However, sometimes prior to the release, rumors fly around that can cause large movements and we don't want to be left on the sidelines during such moves. So we will take the entry signals that come to us today but at half risk on both strategies.