Initial claims fell by 4k, Good news?, NO! -> shorted and made $200
5 minutes Nasdaq Emini
Initial jobless claims fell by 4,000. Is that good news? Ya, sounds good, since less people are out of jobs... So we go LONG? NO!
Yesterday the market shot up after the FOMC announcement that rates are to be kept unchanged at 5.25%... It has reached an over bought region.. This is quite obvious from our stochastics.. Price went down from the opening bell and I managed to to short 1 contract at 1824 ...
stochastics turned down some more and Short-term MACD also turned in my favor... I shorted another 2 contracts at 1820... I expected it to go down even further and MACD to cut the zero line... But, pice action seemed funny and a doji candlestick appeared there were signs that stochastics was turning up.... I immediately exited at 1818... with $200 profits.. Well, this is really a breakeven trade... I am lucky enough not to lose money... because there don't seem to be any clear trend yet..
Fundamentails
The number of initial unemployment benefit claims declined by 4,000 in the week ended March 17 and stood at 316,000, the US Labor Department said on Thursday.
The level of unemployment claims last week was the lowest in the past six weeks and followed a decline of 10,000 in the week ended March 10, according to official data. The four-week moving average of initial jobless claims, which smoothens out the impact of seasonal and onetime factors, declined to 326,000 in the latest week, from 329,750 in the prior week. The number of continuing claims declined by 69,000 to 2.501 million in the week ended March 10 and were the lowest since January 27.