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Nfp
I just post & seldom reply:
The statistics now released by the BLS represent non-conforming data:
Non-conforming data is “subject therefore to the limitations of all analyses based upon broad statistical aggregates, namely, data cannot be compiled accurately or in a manner which conforms to rigid theoretical concepts, and the entire approach tends to be ex post and static.”
The seasonally mal-adjusted data includes adjustments which can also be sources of error.
And month-to-month, or y-o-y comparisons are (1) not parametric, are (2)uncorrelated, and (3) do not imply causation, because the statistics do not represent the actual economic lags for real-gdp or inflation.
Conventional associations using month-to-month, or Y-o-Y data, produce a lot of proverbial "noise".
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The current economic downswing ends now -- Oct 07. If you review, say, 10years or so of currency charts, you should see that the seasonals (beginning in Oct.), are followed with a falling dollar until after the holidays. An economic rebound changes the fundamentals. But I'm still not able to tell you how currencies will unfold. I've always had a hard time with them but have never lost trading Treasury
Last edited by flow5; 10-08-2007 at 03:38 PM..
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