Dec 022011

CL 03 12 (1 Min) 12.02.11

12/2/2011 Monthly Unemployment Report (0330 HI time / 0830 EST)
Non Farm Jobs Forecast: 126K
Non Farm Jobs Actual: 120K
Previous Revision:+20K to 100K
Rate Forecast: 9.0%
Rate Actual:8.6%
Started @ 101.46
Peak @ 101.93 – 0331 (1 min)
47 ticks

Reversal to 100.78 – 0342 (12 min)
115 ticks

Notes: Strongly positive report exceeded the forecast on the face of it, but the market called BS on the 0.4% drop in the rate and rose a meager 47 ticks before reversing for 117. This is the first of a few falsely rosy reports. The markets know this and do not buy it. Following my normal routine, I would wait until the 0332 candle to decide to get out. After seeing a 10 tick drop, I would probably close around the R1 line if it did not bounce back up.