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Old 02-08-2004, 19:04   #4
eternalfuture
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voodooxx,

So, want to "fire and forget" with economic figures, eh?

Possible, but not easy. Sometimes, it involves luck. Even if you're an economist, interpreting the possible impact of a data release, you might still end up on the wrong side.

Example: non-farm payroll increase in May, which was reported in June was absolutely, should've been dollar supportive. Yet look what happened that day. Dollar got bruised. Infact, May data was even better than the ones in March and April (since it contained upward revisions of the previous two months data).

So, anyone following the by-the-book interpretation would've crushed at that time. Do you know what people think about the data that time? According to financial news, the reaction differed compared to the "what-should've-been" because there's another thing to worry about: inflation and the aggressive tightening (which could strangle the economy in the long-run), and of course, that "already priced in" or "good, but not good enough, we want more" mantras.

Just focus on unexpected events, whether technicals (the break of key technical supports/resistances) or fundamentals.

That's just what I think, though. Others may differ.

Good luck!
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