Don't fight the Fed, Train her

The Fed currently puts unemployment reduction as its foremost important task instead of curbing inflation. This priority fuels the March Madness and sent the Dow to continuous record high. The unemployment goal that would affect the Fed's monetary policy is 6.5%. February unemployment rate was 7.7%, dropped from 7.9% from January with nonfarm payroll increase 236,000. While market participants are debating if the record high is sustainable, it is hard to fight the Fed who wide open check book to boost employment.

Even so, there are ways to game the system. Here is a wild thought:

In order to drop unemployment from 7.7% to 6.5% in a month, nonfarm payroll needs to increase by six times February gain. That is 236,000*6 = 1.416 million employment in a month. Consider 3-month data processing gap, if the 1.416 million workforce remain 4 months, the variation will be stable at 6.5%.

How much cost to hire 1.416 million? Not much in fact: paying one person at minimum wage of $8/hr, every day income is $64/day or $320/wk. For 4 months 18 weeks, total income is $5760. For all 1.416 million, that is $8156M or $8 billion.

Eight billion dollars is a big number. But look at this way: Aucker shorted $1B dollar Herbal Life; Incan countered his short by almost half billion dollars; it is 2% of Apple's current market cap that has dropped 30%. It is really not much.

Given this, someone can change the Fed's mind.