Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

THE GREATEST SHOW ON EARTH

|Includes:AA, AAPL, AMD, AMZN, BA, BAC, BZF, C, DBA, DBB, EEM, EFA, EPI, EWA, EWG, EWI, EWJ, EWS, EWT, EWY, EWZ, FXE, FXI, FXY, GDX, GLD, IEF, IEV, INTC, iShares Russell 2000 ETF (IWM), IYR, IYT, JJC, JJG, MCD, MOO, PFE, QQQ, RSX, SLV, SMH, SPG, TLT, UGA, USL, UUP, XLB, XLE, XLF, XLI, XLK, XLP, XLV, XLY, XME

Yes, I've used this image before but it befits the past two months of frenetic two-way trading. Thursday markets moved sharply higher early on news of better Jobless Claims and GDP data plus the positive vote from the German parliament regarding funding their portion of the euro zone's EFSF (European Financial Stability Facility).

Algos jumped on the headlines which is what they're programmed to do. They don't look under the hood for details since given their momentary focus, "facts don't matter"--not at least right away.

A closer look inside Jobless Claims data is the consistent revisions for higher previous claims. This makes current reports generally seem better by comparison. Further, the BLS states with this report the significant impact of "seasonal factors" skewing the report. The figures used to adjust the data typically look for a drop in un-adjusted claims heading into the end of a quarter. For last week however, the seasonal adjustment factors predicted unadjusted claims would rise 0.4 percent per the Labor Department. Instead, unadjusted applications followed the typical patterns at the end of quarters and plunged 8.2 percent, leading to the even bigger drop in the adjusted data.
 

...READ MORE

Subscribe to our RSS feed  
Stocks: IWM, QQQ, AAPL, AMZN, XLK, AMD, INTC, SMH, AA, XLB, BA, XLI, MCD, XLY, SPG, IYR, XLP, PFE, XLV, IYT, BAC, C, XLF, IEF, TLT, UUP, FXE, FXY, BZF, GLD, GDX, SLV, JJC, DBB, XME, USL, UGA, XLE, DBA, JJG, MOO, EFA, IEV, EEM, EWJ, EWT, EWS, EWY, EWA, EWG, EWI, EWZ, RSX, EPI, FXI