U.S. employers added 146,000 jobs to nonfarm payrolls in June and hiring in the previous two months was revised higher by a net 44,000 jobs. The unemployment rate fell to 5%.
• Economists React | Full reportThis is an example of a "Story" that occurs in the general market. If this is the most prominent story that is having an effect on stock and futures prices for the time period you are trading in it is a good thing to know about it and give it weight in your trading.
Appearing in the on line version of the Wall Street Journal this story was a main headline story as the news broke.
To gauge the effect of a story it can be viewed against security prices - how much momentum exists after it comes out and a good momentum indicator will show when this momentum has been exhausted. When you get lessened volume on uptrends and classic momentum divergences on indicators it could be safely viewed that this story is no longer acting in the market as "THE STORY".
Trading story lines is not popular amongst technical traders, but it does provide a bit of a relief from a total lack of attention to market fundamentals while using the technicals to assist measuring the actual effect and duration of the fundamental news story about that security.
A little bit of balance is not a bad thing. In my opinion.
Appearing in the on line version of the Wall Street Journal this story was a main headline story as the news broke.
To gauge the effect of a story it can be viewed against security prices - how much momentum exists after it comes out and a good momentum indicator will show when this momentum has been exhausted. When you get lessened volume on uptrends and classic momentum divergences on indicators it could be safely viewed that this story is no longer acting in the market as "THE STORY".
Trading story lines is not popular amongst technical traders, but it does provide a bit of a relief from a total lack of attention to market fundamentals while using the technicals to assist measuring the actual effect and duration of the fundamental news story about that security.
A little bit of balance is not a bad thing. In my opinion.
