Jobs Report Debrief: The Secret Behind Friday's Massive Market Surge

[Image] Jobs Report Debrief: The Secret Behind Friday's Massive Market Surge You need to hear this… The MAJOR EVENT we’ve been waiting for has finally arrived. Stocks skyrocketed on Friday, rebounding from a brutal three weeks of losses. And while it may feel like the catalyst for the surge was the data within the September Jobs Report… My years of experience on Wall Street tell me it’s actually something else — a mystery lurking underneath the surface — that’s driving the market higher. Identifying this hidden secret can not only help you devise a game plan for the coming week — but also determine the best time of day to trade. With that in mind, today we’re gonna break down everything we learned from the September Jobs Report (and how exactly to trade the fallout). Keep reading to see what I mean… What We Learned from the Jobs Report The data revealed that the US economy added [336,000]( jobs in September, defying expectations and almost doubling the anticipated number. This significant job growth is pivotal because it provides the Federal Reserve with a reason to possibly extend its policy of heightened interest rates. BOTTOM LINE: This jobs data suggests that the labor market isn’t slowing down as some predicted. As this is the last major payroll report before the Federal Reserve's next policy meeting, it’s particularly noteworthy and could influence decisions on future economic policies and interest rates. Treasury Yields, the Bond Markets, and Energy Stocks… Moreover, the Federal Reserve is closely monitoring the bond markets. On Thursday, Fed officials [mentioned]( that if long-term bond yields stabilize around the present levels, there might not be a necessity to raise interest rates further. Nonetheless, the rally in yields persisted on Friday, with 10-year US Treasury yields elevating above 4.8% and maintaining their highest levels in 16 years. To put this in perspective, the iShares 7-10 Year Treasury Bond ETF (NASDAQ: IEF) and the iShares 20 Plus Year Treasury Bond ETF (NASDAQ: TLT) hit their lowest levels since 2010 and 2007, respectively. Some analysts speculate that the bond sell-off might persist, believing that a substantial shift — like a stock market dive or economic softening — would be required to drive a substantial drop in yields. Meanwhile, concerns about growth have pressured oil prices, which are poised for their largest weekly decline since March, fluttering around $83 a barrel for WTI crude oil futures and $84 for Brent crude futures. But now, we need to turn to what truly matters: the market’s reaction… Why the Stock Market is Soaring Don’t say I didn’t warn you about today’s rip-roaring rally… The SPDR Dow Jones Industrial Average ETF Trust (NYSEARCA: DIA) jumped nearly 1.2%, while both the SPDR S&P 500 ETF Trust (NYSEARCA: SPY) and the Invesco QQQ Trust (NASDAQ: QQQ) experienced surges of 1.4% and 1.8%, respectively. I can’t say I’m surprised by this move… As I mentioned on Friday, recent history foreshadowed this “unexpected” move in stocks, back on May 5… On that day, following a Fed meeting, the major indexes experienced their best day in five months… But what led to these rallies wasn’t unique — it’s actually a consistently observable phenomenon: the easing of uncertainty. Heading into a much-anticipated catalyst (like Friday’s jobs report), the market’s uncertainty is like a grenade — slowly ticking down until it explodes on the day of the event. When that explosion occurs, the build-up is over. And the market is generally happier when it finally “knows” the information it was looking for. This is what I was getting at on Friday morning as I showed you the SPY chart from May 5. The way I was seeing it, the rally we saw was far more likely than another massive dump. But now, we need to look forward and form an actionable game plan for trading this week… What This Means for Your Trading When Wall Street is rapidly repositioning, five-star setups are awaiting traders (like you and me). You just have to know what to look for… So, how can you tell when Wall Street is backed into a corner, giving you an ideal opportunity to strike? Focus on the last hour of the day — the “Burn Notice” Window… By limiting most of your trading to the last hour of the day, you can potentially gain an enormous edge on the competition. Don’t believe me? Let me show you what I’m talking about… On September 6th, 2022 at 3:00 p.m. Eastern — I spotted a Burn Notice being issued on Moderna Inc.’s (NASDAQ: MRNA) stock… Until the closing bell, the stock continued to cascade lower and lower. But if you had searched ‘Moderna’ on Google that day, you wouldn’t have seen any bad news. There was NOTHING wrong with the stock on that day — Wall Street was essentially lighting money on fire by selling. If you had understood this and traded the Burn Notice, you could’ve bagged a 17.6% gain overnight: Or, more recently, when my scanner identified a Burn Notice taking place on PDD Holdings Inc. (NASDAQ: PDD) before surging 22% the very next morning… All of this convinces me that trading before 3 p.m. — especially in this ultra-volatile environment — is a COMPLETE and TOTAL waste of time. Trade accordingly. Closing Thoughts Timing is everything in the stock market. And that’s even more true at this very moment. Try to avoid trading before the last hour of the day right now and keep your eyes peeled for [Burn Notices](. As always… Stay Street Smart, Jeff Zananiri   66 West Flagler Street STE 900 Miami, Florida 33130 United States [Facebook]( [Twitter]( [Instagram]( [YouTube]( [Click Here to Unsubscribe]( **Our gurus teach skills others have used to make money. Any results displayed are extraordinary and are not typical and will vary from person to person. For more info read our [Earning Claims Disclosure]( About: Making money trading stocks takes time, dedication, and hard work. My goal is to teach you how I have succeeded in the market, but you may not achieve my results. Remember, there are risks involved with investing, including the potential loss of money. We are strongly committed to protecting your privacy and providing a safe & high-quality online experience for all of our visitors. We understand that you care about how the information you provide to us is used and shared. 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