Preemptive strike!

This ramp-up starting during the usually quiet lunch time allows the TBTF banks to make the most with the money that they are allowed to invest.

Up to 12:00, the MF had been relatively neutral or even slightly negative. Now, the MF story is different. Since the market will not see a negative jobs report as an incentive for more FED QE, this positive strike is a necessity. Hopefully, a negative jobs report will not push the market lower than 1430.

Needless to say, but statistics that involve data before QE of March 2009 might well be irrelevant!

During my RT back-tests, I found that between January 2007 and March 2009, the correlation between the opening gap and the MF direction of the two last minutes was 0.03 (This means "No Correlation.") The same measure between April 2009 and July 2012 was 0.29 (This means "High correlation.")



Pascal

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