Worse Than Expected

by Larry Levin

Surprisingly there is no scheduled news to be released on Friday. One might wonder; if there had been news scheduled, would it matter?

It sure didn't matter today. All of the following news was worse than expected in one way or another...

1. Weekly jobless caims are 452,000. Although this as better than last week's posted number, it is actually terrible because last week's data (as usual) wasn't really accurate...it was once again revised LOWER than originally reported.
2. Jobless claims - in all machinations - continue to get worse.
3. Today marks the 25th revision worse than originally reported - out of 26 reports!
4. The LEI report was released "as expected" but the prior month was revised worse than originally reported.
5. The Philly Fed was 50% worse than expected.
6. The FED conducted a reverse repo that removed liquidity from the market, which caused a surprising drop in the afternoon.

None of this matters, of course, because the FED has the market's back.

Moreover, tomorrow is yet another liquidity injection (which begs the questions: why the reverse repo?) via free money Friday (POMO).

Previous Day's Trading Room Results:
Trade Date: 10/21/10
E-Mini S&P Trades*
(before fees and commissions):

1) No "Secrets" trades filled today.

2) Algorithm positions (10)

3) “Reading the Tape” positions (13) …combined Secret’s, Algo, & “Reading the Tape” total +8.75

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