react before the data

ADX_trader · Nov 3, 2003

Why do the markets react before the release of the data at 9:59 instead of 10:00? Are there some guys know the data before the public?

pspr · Nov 3, 2003

Of course. Many, such as Bush and Greenspan, receive gov. numbers the night before. Who handles that piece of paper they receive? I'm sure leaks are even greater with non-gov numbers.

Wally

VOLUME · Nov 3, 2003

The number today was released early. It hit Bloomberg at 9:59, not 10:00.

dbphoenix · Nov 3, 2003

That's why fading is so often the way to go. Plus we're testing old highs.

stock777 · Nov 3, 2003

how come it ramped long before 9:59. LOL. Who ya kidding,

EMini-Player · Nov 3, 2003

I got ass handed to me while trying to Fade the move

-Fast

dbphoenix · Nov 3, 2003

Quote from stock777:

how come it ramped long before 9:59. LOL. Who ya kidding,

Same reason whenever price rises or falls before a report: there are enough people willing to bet that there will be a breakout that they'll take a position in the dark.

ADX_trader · Nov 3, 2003

Quote from dbphoenix:

Same reason whenever price rises or falls before a report: there are enough people willing to bet that there will be a breakout that they'll take a position in the dark.

Do you think they DO know somethings or just bet blindly?

dbphoenix · Nov 3, 2003

Quote from ADX_trader:

Do you think they DO know somethings or just bet blindly?

Depends on the trader and what he knows about probability. Today, for example, both the ES and NQ bounced off a pivot level which coincided with Friday afternoon's high (which may also have been a last reaction high), so the report was probably irrelevant to anybody buying that bounce. Traders seeing the price rise and who don't follow S/R may have thought something was up and jumped onboard. The ISM number itself is not usually a big market-mover.