What is Your Take on the Announcement Effect with Unemployment #s?

[Scataphagos]

I am still really confused on last week...March 26th when unemployment #s were released the market surged like crazy and SPX went from 2500-2626...WTF? A monumental number of people are out of work ALREADY and this shit show is just now getting kicked off...It seems crazy to me to interpret that as anything other than bad. Would you agree that the market had an inverse reaction to that news? Should that reaction tell me something that i dont have experience enough to see?

As the jobless claims number was forecast to be 1.6MM and turned out to be 3.2MM, I think the market went, "Whee! Worse than expected means EVEN MORE STIMULUS... YEA!"

 

[Overnight]

As the jobless claims number was forecast to be 1.6MM and turned out to be 3.2MM, I think the market went, "Whee! Worse than expected means EVEN MORE STIMULUS... YEA!"

Indeed. And there is also the end-of-quarter rebalancing going for many portfolios. Wonder how much of this upward move is caused by that.

 

[nooby_mcnoob]

I am still really confused on last week...March 26th when unemployment #s were released the market surged like crazy and SPX went from 2500-2626...WTF? A monumental number of people are out of work ALREADY and this shit show is just now getting kicked off...It seems crazy to me to interpret that as anything other than bad. Would you agree that the market had an inverse reaction to that news? Should that reaction tell me something that i dont have experience enough to see?

3 million was expected by everyone except the analysts, number wasn't much worse, BTFD.

 

[ElCubano]

Short is faster return harder to catch, long slower return easier to catch. Always forever no matter what when and how, longer term.

 

[vincentnyc]

so you must have been shorting all last fall then, right?

no. i move to mostly cash on my 401k before the big drop. now i'm slowly averaging it in after the 30% drop recently. you ask me how i know? i said it is from my 10,000+ hours of screen time looking at charts everyday.

 

[Stocktracker]

I am still really confused on last week...March 26th when unemployment #s were released the market surged like crazy and SPX went from 2500-2626...WTF? A monumental number of people are out of work ALREADY and this shit show is just now getting kicked off...It seems crazy to me to interpret that as anything other than bad. Would you agree that the market had an inverse reaction to that news? Should that reaction tell me something that i dont have experience enough to see?

Yes!