As I wrote in past posts, market has nothing to do with economy, reports, etc. If there is any relation, I would bet that the market determines the economy, the jobs reports, etc. If it were true, then market should be red today because judging from EUR/USD jobs reports must have been bad. I did not read it, and Shortie might brief us on it as he is the dean of market commentators. If you insist on reverse relations, jobs report would start getting priced on Monday and/or Tuesday. If futures first trade in the green and break today's high on Sunday, then it might lead to start of retreat. When retreat is in motion, some news will be found and used to explain the retreat.
Ill clue you in, the numbers were +39,000 when everyone was looking for over 150,000 jobs and the unemployment rate jumped from 9.6% to 9.8% when some were forecasting for a 9.4%-9.5%. These numbers were terrible, the markets initially sold off on the report but sprung back higher as soon as the opening came. Who knows what next week brings but it seems no matter what the rally will still continue into the rest of december, all the talking heads only speak highly of the markets on cnbc, seems that they are all one sided. HMMMM.... These job numbers today will only push for tens of billions of dollars more towards extending the unemployment benefits until at least mid 2011.
I believe it is not true. I would rather think that the market rises because shorts who have losses are covering their losses, and those shorts who have profits are taking them on a rising market.
Trading Journal you just pointed out my 3rd conspiracy theory on wallstreet, shorts constantly covering their losses which entails a higher stock market. That is full of nonsense. I don't buy that one bit, it seems every single time the market breaks out its because the shorts are covering their losses. Who are these shorts covering their losses? The little guy isn't even in the market. 70-75% of the volume today is done with HFTs and they don't hold positions for any longer than maybe 2 or 3 seconds. So who is covering their shorts day in and day out to push this market higher. I dont believe it, the market is higher because of the liquidity and unlimited amounts of money bubble ben bernanke has put to work, also pay attention to POMO!!!!
That's secondary. Main driver in my opinion is when too many people are on one side or the other. They get squeezed. Sometimes it's the shorts, sometimes it's the longs. As of today, I've decided the longs are going to get squeezed. Today was a very rare, very interesting day.