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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: russwinter who wrote (44752)11/4/2005 10:04:26 AM
From: Rarebird  Read Replies (1) of 110194
 
>>punk jobs numbers>>

All of this means very little. In bull mode, bad news is ignored and looked at positively. For instance, the average hourly earnings increase is viewed as good since it allows consumers to spend more and helps pay for their higher energy costs. In bear mode, the high average hourly earnings increase will be taken negatively; that is to say, an average hourly earnings increase of .5% hurts corporate profits and may represent a harbinger of stagflation. (Oh yes, I know from a perma bearish standpoint, most consumers are already in this stagflationary predicament.)

What matters here is how the market reacts to the news. The news itself is basically irrelevant and can be used to justify a bearish or bullish stance.

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