Jul 312012

6A 12 12 (1 Min) 07.31.12

7/31/2012 CNY HSBC Flash Manufacturing PMI (1500 HI time / 2100 EDT)
Forecast: 50.4
Actual: 50.1
Previous Revision: n/a
SPIKE with 2nd peak
Started @ 1.0356
1st Peak @ 1.0340 – 1503 (3 min)
16 ticks

2nd Peak @ 1.0333 – 1510 (10 min)
23 ticks

Reversal to 1.0367 – 1730 (150 min)
34 ticks

Notes: Slightly negative report disappointed the traders. This caused a short spike of 16 ticks that peaked on the :03 bar, crossed the 100 and 50 SMAs and the S2 Pivot. After eclipsing the S2 Pivot, it was unable to sustain the drop and bounced for 9 ticks. The market had been trending lower with a last minute bullish correction prior to the report. With JOBB, you would have filled short at 1.0351 with no slippage. Keep an eye on it as it approaches the LOD, then exit between the LOD and the S2 Pivot at about 1.0343 for 8 ticks. After the small reversal, it achieved a 2nd peak of 7 more ticks on the :10 bar. Then we had a 12 tick reversal to the S2 Pivot, another drop for a double bottom, then the final reversal took effect. It yielded 34 ticks in 2 hrs after the double 2nd peak at 1530, slowly and methodically climbing through all 3 major SMAs and the S1 Pivot.