7/12/2012 CNY Quarterly GDP (1600 HI time / 2200 EDT)
Previous Revision: n/a
Started @ 0.9993 (1559)
1st Peak @ 0.9984 – 1601 (2 min)
Reversal to 1.0018 – 1602 (3 min)
Pullback to 0.9992 – 1621 (22 min)
Notes: Barely negative and nearly matching report caused indecision. This caused a short move of 9 ticks that peaked on the :01 bar, hitting all 3 major SMAs, then a reversal long for 34 ticks peaking on the :02 bar. The market had been trading sideways prior to the report. With JOBB, you would have filled short at 0.9988 with no slippage. It fell to 0.9984, then hovered between 0.9984 and 0.9989 for 15 sec before reversing long. This would give you ample time to close out with 1-2 ticks or at break even. The other play you could make would be moving the stop loss in by 10 ticks at 0.9993 so you are only risking 5 ticks. This way you are protected, but if it dives you would be able to capture the profit. It reversed for 34 ticks, then retreated for 26 ticks to eclipse the 50 SMA, then rebounded long again.