Why the initial move in opposite direction after news release?

[farmerjohn1324]

Today, immediately after NFP release, S&P went down for about 2 minutes before going back up and it's been up since.

Same thing happened the other day following the Fed speech. Initially gains, followed by massive loss.

 

[Aisone]

The news was just a front for creating a final reversal move for the selloff over the last week or so [imho].

 

[murray t turtle]

Today, immediately after NFP release, S&P went down for about 2 minutes before going back up and it's been up since.

Same thing happened the other day following the Fed speech. Initially gains, followed by massive loss.

%%
IT also happens plenty of times the other way;
markets are complex with many players/dealers specs, investors\ traders/ many of whom dont even listen to news or talking snake media\news.
I read WSJ + IBD Newspaper but 99% of the time its post market,
And some premarket news on radio;
but charts mean a lot more for my profits, than any talking snake media

 

[farmerjohn1324]

Well I've had a wild ride since the NFP release. I sold it while it was initially going down immediately after release at about 3731.

Then it went back up and I realized it wasn't going back down again, so I reversed position at around 3761 (after losing $9000). Then sold it at 3800 for a $2250 profit for the day.

Not bad for 2 hours of "work" but lots of stress. Almost got margin called at one point.

 

[Scataphagos]

Today, immediately after NFP release, S&P went down for about 2 minutes before going back up and it's been up since.

Same thing happened the other day following the Fed speech. Initially gains, followed by massive loss.

Before news, players are positioned as to what they hope or expect. When the number comes out, some players jump on it... others scramble to protect. Leads to much quick volatility but ultimately means little beyond only the shortest term. If you don't want to play in that volatility, suggest standing aside until the smoke clears.

 

[Aisone]

Well I've had a wild ride since the NFP release. I sold it while it was initially going down immediately after release at about 3731.

Then it went back up and I realized it wasn't going back down again, so I reversed position at around 3761 (after losing $9000). Then sold it at 3800 for a $2250 profit for the day.

Not bad for 2 hours of "work" but lots of stress. Almost got margin called at one point.

Dude, way to hang in there.

 

[farmerjohn1324]

Dude, way to hang in there.

Thanks.

 

[farmerjohn1324]

Before news, players are positioned as to what they hope or expect. When the number comes out, some players jump on it... others scramble to protect. Leads to much quick volatility but ultimately means little beyond only the shortest term. If you don't want to play in that volatility, suggest standing aside until the smoke clears.

Does your username mean "eat shit"?

 

[murray t turtle]

Well I've had a wild ride since the NFP release. I sold it while it was initially going down immediately after release at about 3731.

Then it went back up and I realized it wasn't going back down again, so I reversed position at around 3761 (after losing $9000). Then sold it at 3800 for a $2250 profit for the day.

Not bad for 2 hours of "work" but lots of stress. Almost got margin called at one point.

%%
Congrats on your profit\ almost got a margin call\ most likely means you will get a MC+ forced sale\ no problem unless thats you main account.
NOT a prediction/ not getting a margin call or repo car.
But I did get an auto repo[forced sale=bad] back in college age/+ years

 

[DaveV]

Why the initial move in opposite direction after news release?

The initial move is instantaneous and is caused by algos preprogrammed to make automated trades based on the numbers in the news release. However, once the market has had a couple minutes to absorb and think about the news, the market may go in the opposite direction.