Always Treat News Driven Moves This Way

Watching the Nonfarm payroll reaction this morning was an odd way to start the day.  Some speculators swear they don’t care about data like NFP, others watch it real close.  Some people chart the data out using Bloomberg Terminals.  They pay good money for that data, too much money in my opinion. I just log the events on my daily Switchboard and conduct third reaction analysis on high impact events.

There was no third reaction this morning—at least not in my traditional, short-sighted sense.  Instead was just sold, and sold, and sold some more.

It was so ridiculous, I considered it noise and wrote my morning plan like I always would.

I do a few things well.  One is treating news driven moves differently than ‘real’ moves.  I expect the old check back, the old knee tap, the old turn your head and cough.  With that in mind I watched the open then started my buying campaign.

So nice, so clean, so in accordance with a working hypo.  I hope by demonstrating this stuff enough times you guys will give this form of analysis some credence and implement it into your own practice.

Otherwise you are a puppet of your emotions and certain to be corrected repeatedly and without relent by the markets.  Have a great weekend!