Institutions trading on insider information?

Yesterday was no black swan after all – unemployment climbed to a five-year high of 6.1 percent. Today, the market reacted briefly. No comparison to what happened yesterday even though the information was far more dramatic than what was published yesterday.

When did institutions know about this data for the first time? I doubt it was today. Did the drops between yesterday and today represent the distribution between institutional and retail investors? Other questions pops up in my head: Were institutions buying when retail was selling this morning? If so, do they trade on insider knowledge? Unfortunately, I do not have any answers, just questions. However, I will be looking out for these dissonances in the future…

On the bright side, my Dow Jones Industrial Average prediction on www.predictwallstreet.com was correct for today. The question is, can retail take hints from institutional trading when working only with publicly available information and no insider knowledge or connections. Dissonances between stock prices and PredictWallStreet investor sentiment (on highly predicted securities) may be a first hint that institutions trade on insider information (or something similar).