It was another crazy week with a move we all expected finally happening on Thursday as the Nasdaq entered correction territory. Then we got to see the jobs report’s effect on the market the following morning… And that was good news.
And there’s a phrase that comes to mind: “The first move is the wrong move.”
After the Nasdaq tanked yet again, there was panic among investors. And Federal Reserve Chair Jerome Powell’s comments on inflation triggered an even larger sell-off.
We told you not to lose your heads, which is what most people did. After seeing the jobs report’s effect on the market, panicking was a textbook case of how not to react.
When big, market-altering numbers come out, the first move is usually the wrong one.
The stock market, especially the Nasdaq, was overstretched, and the sell-off . Now it appears to be bouncing back. Again, the first move is usually the wrong move.
The Jobs Report’s Effect on the Market
Most of our readers are investors looking to get into a stock long term, and there’s nothing wrong with that. But that makes big moves and big numbers like this a little scarier.
We went from a big Nasdaq sell-off to incredible jobs numbers. Most were hoping for around 200,000 new payrolls in the private sector. There were 370,000, so that got blown out of the water. Which is normally great economic news… but not when there’s concern for inflation.
The jobs report’s effect extended to bonds as well. An hour before the stock market opened, the 10-year yield was showing a strong economy and recovery, saying rates need to go 2%…
Wrong.
Rates got stretched and came back down soon after the open— the first move is the wrong move!
There’s going to be a lot of volatility, which makes it hard for investors that don’t trade. But the good news is we’re entering a trader’s market.
If you stick with us, we’ll share some tips… starting with the jobs report’s effect on the market. Check out our video below for an in-depth look, and share your thoughts in the comments.
As always, feel free to email your trading questions to jeff@joyofthetrade.com, and make sure to stay ahead of the markets by subscribing to our YouTube channel.
P.S. From 1993 to 2021, you would have lost 10% of your money buying and holding the S&P 500 during the day…
Yet if you’d bought at the close and sold again right at the open, anyone could’ve seen an 812% increase in their investments.
Where did all the gains come from? Overnight moves.
And we just revealed how we’re exploiting these overnight moves on a handful of stocks every single day.
