The market's first reaction to news is usually wrong. Here's how to trade upcoming PMI & Jobless Claims the right way. A report drops. Price gaps. Traders chase the gap. > Small surprise = steady continuation in the same direction over the next few days. > Large surprise = overreaction, then reversal as the market discounts the shock. > The initial move is a guess. The next few days are the answer. Here's the mechanic: price BEFORE the report is the market's best guess of what the report will say. If the report matches, no move. If it differs, price adjusts by the size of the surprise. Trade the reaction to the reaction. That's where the edge lives. Bookmark so you can come back before next week's.