Strategy › JOLTS Loophole

These are my notes on the JOLTS loophole strategy

• Presenter
  • Bryan Bottarelli
• Basic theme
  • Government releases a report every month
    • 12 times a year
  • Market will go either way when report is released
    • Inflation is up, market goes up
    • Job is weak, market sells
  • These are overnight trades

Backstory

• Started working the floor of CBOE
• Noticed a pattern with IBM being boring the entire year except four times a year, earnings day
• Gets into a trade the day before a catalyst and get out the next day
• Goal is to double your money within 24 hours
• Profit from the explosiveness of the stock, not whether it goes up or down

JOLTS

• Report will move the entire market
  • An earnings report may move an entire market, or industry, or just one stock
• Average market day moves .05 percent
  • Average JOLT release report day moves 222 percent
    • Market swings have been higher as much as 800 percent in recent years

As the market moves up or down, programs may look at the momentum and simply sell or buy. That can exponentially increase the explosiveness without any basis in fundamentals.

Guy De Blonay, Jupiter Asset Management

Strategy

• Buy SPY 1 day before JOLTS report is released
• Watch the day before and buy within 5 to 15 minutes before the closing bell
• Close the trade after the report comes out

Pay attention

• Next JOLTS report is August 12 at 2 PM
• Fact check. According to the BLS website, for some reason, they are not releasing the next report until September.

Accessibility notice

The captions in the video is nearly flawless. I counted one instance where the captions was suspect. In addition, there was a transcript as well. There were issues with the video player controls being disabled or limited in functionality. I could not pause it and rewind to verify the captions. I could not search and find a match for a “five minute” phrase in the captions with the transcript.