June 3, 2013 at 4:10 pm

Avatar of moderatorval
Joined: May. 30, 2013 Posts: 54

Jon Markman writes that recent volatility has been “exacerbated by the waiting game ahead of next Friday’s release of the May employment report.”

I like to trade VIX and VXX puts to play volatility before major news events, but is there any other way to play the employment report? I can’t think of any specific companies or even sectors where you could make a directional bet, but I’d be interested if others have found a strategy.

“Everyone must choose two pains: The pain of discipline, or the pain of regret.” Jim Rohn

June 6, 2013 at 4:24 pm

Avatar of dtony
Joined: Jan. 23, 2013 Posts: 17

I’ve wondered about this as well, but on a larger scale. I understand that employment data, news from the Fed, housing starts and all pieces of economic data allow investors to make highly educated guesses about what companies to buy/sell, but how does one report swing the Dow 200 points in a session like today’s (6/06 Range: 14,844.22 – 15,040.62).

Additionally, when everyone gets the same information such as an economic report, how is it that wild swings take place during the session, only for the index to end relatively unchanged. At what point during the day did these traders decide to change their minds and bid stocks back up. Or did dip-buyers just come in and buy all the cheap stocks up?

Macroeconomic factors are much more abstract and difficult for me to understand, than say, an earnings report with detailed information on one company.

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