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Morning Note: Why Declining Unemployment Isn’t a Bullish Sign

The Fast Money Traders saw little to react to in Friday morning’s unemployment number. But they were still betting the market would rally after Federal Reserve Chairman Ben Bernanke finished putting a bullish spin on the data in his testimony before the senate budget committee.

“I think Ben Bernanke is going to be as bullish as possible this morning,” said Tim Seymour, founder of EmergingMoney.com. “It should be equity positive.”

Bernanke would likely focus his speech on the headline unemployment rate. The rate fell to 9.4 percent in December, a 19-month low, as the private sector added 113,000 jobs. November's job gains were also revised upward to 71,000 from 39,000.

Though the rate drop appeared bullish, a bearish case could be made from the unemployment figures. More people were potentially dropping out of the labor force after being unable to find work. The civilian labor force participation rate fell slightly in December to 64.3 percent.

“If you want to be negative, you could find something negative,” said Kanundrum Capital’s Brian Kelly. “If you want to be positive you could find something positive.”

For the best market insight, catch 'Fast Money' weekday nights at 5pm ET, and the ‘Halftime Report’ each afternoon at 12:30 ET on CNBC.

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