1/23/2013 CNY HSBC Flash Manufacturing PMI (2045 EST)
Forecast: n/a
Actual: 51.9
Previous Revision: +0.6 to 51.5
SPIKE WITH 2ND PEAK
Started @ 1.0485
1st Peak @ 1.0495 – 2047 (2 min)
10 ticks
Reversal to 1.0481 – 2054 (9 min)
14 ticks
2nd Peak @ 1.0508 – 2126 (41 min)
23 ticks
Final Reversal to 1.0468 – 0003 (198 min)
40 ticks
Notes: Report impressed the traders, with a moderate positive previous report revision. This caused a long spike of only 10 ticks that peaked on the :47 bar. The market had been trending lower before the report, but had begun to correct, so the long spike hit the 200 SMA and S1 Pivot and could go no higher. With JOBB, you would have filled long at 1.0489 with 1 tick of slippage. Look to exit just above the 200 SMA with 4-5 ticks. It then reversed for 14 ticks in the next 7 min back to the 100 / 50 SMAs, before ascending for a slower and bigger 2nd peak of 23 ticks 30 min later, eclipsing the PP Pivot. The final reversal saw a fall of 40 ticks in about 2.5 hrs.