logo
  Join        Login             Stock Quote

Unemployment Claims As Bullish As They Seem?

 September 10, 2010 11:20 AM
 


The Labor Department reported Thursday morning that new claims for unemployment dropped a seasonally adjusted 27,000 to 451,000.  Unexpected bullish news, right?  The markets immediately gapped-up on this information as the bulls found good reason to buy.  Unexpected positive news is almost always met with a bullish move north as it's rarely priced in.  However, a useful tidbit of information about that shockingly large drop came out after the gap-up.  Bloomberg reported that nine states didn't file claims data to the Labor Department in Washington because of the Labor Day holiday earlier this week.  California and Virginia estimated their figures and the U.S. government estimated the other seven.  Coincidence in the large drop or not?  We'll see when the next revision comes out but usually those revisions fail to make headlines as we are already focusing on future claims.  This has been a great cover-up method for a long time.

[Related -Is The S&P 500 Triple Top Actually A Bullish Sign?]

In other important news Thursday, the Shanghai Composite lost 1.4% Wednesday night over concerns that China will take steps to tighten credit. Usually this is news that the markets would turn bearish on but, it was disregarded today.  Are we going to ignore the bad news now and simply hold our nose and buy?  Markets tend to trend in one direction longer than most everyone thinks it will so, we could see more low volume moves north before we start to remember the economy is not nearly as strong as we hoped it would be by now.  If the Republicans can get in office, this can create a standoff between Republicans and Democrats that has been known to be bullish for the markets.  John Boehner vs. Barack Obama could be the new Newt Gingrich vs. Bill Clinton and the markets are likely to have a more bullish sentiment from it.  That potential setup might be the strongest case for the bulls at the moment.

[Related -Sector Detector: Is There Still Enough Fuel In The Bulls’ Tank?]

Technically speaking, the markets are still in a trading range between the 200-day simple moving average and the 50-day simple moving average in the S&P 500.  I was hopeful the markets would run up closer to the 1015 resistance level but, we barely broke the 1010 resistance.   Due to this, I was unable to add to my short hedges at the favorable levels I wanted to.  After the gap-up to open, we trended south until a final hour push brought us slightly up to end the day.


Next Page >>12
iOnTheMarket Premium
Advertisement

Advertisement


Comments Closed


rss feed

Latest Stories

article imageIntegrated Device Technology Inc. (IDTI) Q1 Earnings Preview: Another Beat and Pop?

Integrated Device Technology Inc. (NASDAQ:IDTI) will issue first quarter 2015 financial results on July 28, read on...

article imageHerbalife Ltd. (NYSE:HLF) Q2 Earnings Preview: The Potential To Shock?

Herbalife Ltd. (NYSE:HLF) will release its second quarter 2014 financial results after the close of trading read on...

article imageHealth Net, Inc. (HNT): Potential to Be Huge Winners Says Bank of America

As of this keystroke, Health Net, Inc. (NYSE: HNT) shares are up around 4% on the day. The managed health read on...

article imageHomeAway, Inc. (AWAY) Q2 Earnings Preview: Top and Bottom Line Bullish Surprise?

HomeAway, Inc. (NASDAQ:AWAY) will report its financial results for the second quarter ended June 30, 2014 read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.