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Jobless Claims Fall Sharply To 324,000 Last Week. Thank You FOMC!

Thursday, May 2, 2013 - 11:42 PM
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Dear Readers,

The news from Reuters is: "Jobless claims fall sharply to 324,000 last week".

http://www.reuters.com/article/2013/05/02/usa-economy-idUSL2N0DI1KN20130502

I must thank our public servants who are serving us on the FOMC.  You are doing a wonderful job with single minded attention to the law - the dual mandate - that you are required to follow.

Keep doing what you are doing.  It is working exactly as you envision it.

Yours Truly,
- Anon
3
ytytytytytytytyt158 posts since
Jan 28, 2013
Rep Points: 623
1. Friday, May 3, 2013 - 11:31 AM
Dear Readers,

All right ... the unemployment now stands at 7.5% ... the lowest it has been since President Obama took office.

This is a great news for those who got a job recently and for the society as a whole.

... Let us see what can our monetary policy makers (good old FOMC) do to help those who are still unemplyed.  Go FOMC ... !!

Yours Truly,
- Anon
1
ytytytyt64 posts since
Feb 28, 2013
Rep Points: 197
2. Friday, May 3, 2013 - 2:50 PM
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Dear Readers,

Stock market has responded to the job gains by moving higher.

Bond market has responded by moving lower (except junk). 

I'm getting ready to respond as well!  Watching Treasury, Muni, and High Quality bonds with intent to buy.  And watching broad stock market indices with intent to short.  :-)

Yours Truly,
- Anon
1
ytytytyt64 posts since
Feb 28, 2013
Rep Points: 197
3. Friday, May 3, 2013 - 4:47 PM
Yt, this is the discipline that most investors do not have: buy on dip and short on rally. 

You've guessed right, I just sold $10K on FSCRX yesterday to cause the rally today.:D
1
51hh51hh1,476 posts since
Jan 16, 2010
Rep Points: 6,427
4. Friday, May 3, 2013 - 9:22 PM
.

Dear 51hh,

I'm no Investor actully, but a Trader.

One of the certainties I know of about the humans is that during the euphoria, the market participants tend to push the stock markets to OverBought level. Eventually the euphoria subsides and that's when the inevitable regression-to-mean occurs.

The discipline I have is simply to watch for such euphoria (and panic) and then to get some low-hanging fruits by shorting (or going long), and then existing at a resonable profit (or a tolerable loss).

The markets are complex and support whole lot of styles/disciplines. I know of traders who perform almost reverse of what I do (in different time-frame of course) and make money.  They participate successfully in the euphoria by going long and make an exit before what they perceive is the intermediate top.  And they participate in panic as well by shorting, and cover before the intermediate bottom.  Different strokes for different folks!

In the process, I suspect the "buy-and-hold" crowd literally and figurative is left holding the proverbial bag! :-)

Yours Truly,
- Anon
1
ytytytytytytytyt158 posts since
Jan 28, 2013
Rep Points: 623
5. Friday, May 3, 2013 - 9:46 PM
Yeah, momentum investor/trader (Buy high/Sell-short low) or contrarian investor/trader (Buy low/Sell-short high).  I think most are panic/greedy ones who buy high and sell low. 

Actually Jason Zweig's strategy is also momentum in the sense that he buys when market has some prolong upward trend and sells when the market is tilting downward so that he does not win at the peak or lose at the bottom.
1
51hh51hh1,476 posts since
Jan 16, 2010
Rep Points: 6,427
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