Here’s a simple set of rules that remind us about how to trade market announcements:

Cheat sheet: reacting to data and market releases

weak data =  Fed ease, stocks rally

consensus data =  lower volatility, stocks rally

strong data =  economy strengthening, stocks rally

bank loses $4bln = bad news out of the way, stocks rally

oil spikes =  great for energy companies, stocks rally

oil drops =  great for the consumer, stocks rally

dollar plunges =  great for multinationals, stocks rally

dollar spikes =  lowers inflation, stocks rally

inflation spikes =  will inflate all assets, stocks rally

inflation drops =  improves earnings quality, stocks rally