History Says Think Again Before Buying After the Jobs Report
February 3, 2012
Our friends at SentimenTrader had an interesting tidbit to share. It seems that for the last 8 "Payroll Report Fridays" we have had a mixed open, but all 8 times the market closed lower than the prior Thursday's closing level.
That's a decline 8 out of 8 times.
They go on to reveal that if a trader had bought at the "Payroll Report Friday" open each time the report was released then the last time said trader would have gotten a 1% or greater gain was way back in September of 2009.
So buying the open following the report hasn't often lead to meaningful profits and recently (8 months straight) it has been "not good".
CNBC also reports that if the market closes lower on Friday it will mark the ninth consecutive time the averages fell on the day of the monthly employment report.
Probably nothing tradable in the above, but with all the forced "drama and excitement" on the business TV shows I thought it was worth sharing.
Have a good one...
Curtis Bergquist
Manager: PRO Trader
P.S. The PRO Trader was a top performer in 2011.
S&P 500 - Last 12 Month
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