Thread: Fast news versus slow news?

I recognize that I am not exactly a fanatic of fundamental analysis. That said, I am struck by the fact that news such as these does not generate instant and explosive reactions in the market. Foreigners throwing away dollars; buying gold as if the world was finished... The demand for US Treasury bonds fell 81% in a single month. According to the Treasury, purchases went from $98,000 million to only $20,000 million. In fact, in July, more bonds were sold by global investors than those that the US managed to place. Result: the price of long-term bonds collapsed more than 2 and a half points in a single day. The dollar index is a sigh of its historical minimums. Nothing to do with news like the NFP or ISM that generate those crazy peaks of volatility... [fast news] Will it be that the traders are not lurking away from this kind of news? Will they understand outside of market hours like me? [slow news] Are they news that are already assumed by the general context and that do not impact me so much?

Forgive me for answering myself [sad, I know], but I think the real question was another. Should we as traders pay more / less / equal attention to news of this type? It seems that they have a more lasting impact on the feeling of the market, unlike the NFPs that generate noise and then go out (unless the numbers are totally out of the expected

I'm a technical trader like you, but I think it's key to take into account those "slow" news. The NFPs and those important macro data, I only touch them if I see a very clear point to get in. For example, today I bought EUR/USD at 1.4061 just after an ad of those that I don't remember what it was. It tells you a lot how much I care about it. The reason? A very clear 4H graphic support. The price touched several times and didn't break it, it was noticed that there were big orders there. I bought and took out 31 pips without drama. I didn't read a news and run to open an operation. But it does serve me as a context: if I know that the dollar is broken, I'm not surprised to look for purchases in the euro. That's all the fundamental analysis I need, honestly. If I had to write an article about this, it would be like: I sold dollars. I bought anything else in support zones.

Not at all! Thanks for the roll! I think we are quite aligned. I also read the news but I don’t let them dictate my tickets or my technical analysis. At the end of the day, news like that probably affects more bonds or stocks. And as you said, some are as obvious (as the dollar made rag

If you expect "slow news" to have the same impact as an NFP, you're going to age in front of the chart. Those news changes the context, not the 5-minute candle.

You said it yourself: you're not a fundamentalist, so don't try to operate like one. Use macro info as a tailwind, not as a trigger.

The news that moves markets in seconds is programmed. The news that moves trends has no fixed agenda. Think about that.

Don’t you understand why they don’t react to headlines like this? Easy: because it’s already discounted. Traders don’t operate what happens, they operate what they expect to happen.

In my case, I read those types of headlines and only use them to confirm that my long-term bias is going well.

You're not missing anything. You're just looking with technical eyes at something that wasn't created to react instantly.