On last Friday, the latest job loss data released was worse than predicted, however, the market reacted by going straight up. The reasons, some say, are that people ( or the market) have already factored in the bad news and any less-bad news can be good news, and that the bad news would push the congress the pass the 800 billion bailout plan. And the market is also waiting for new Treasury Secretary Tim Geithner’s announcement.
It’s highly possible that the congress would pass the bill on Monday, which is something market has high expectation of.
Normally, when the market strongly expect something to happen, it has been factored in current price. So when the news actually come, movement in market is therefore not strong. Let’s see if this is true this time.
