Sep 302012

6A 12 12 (1 Min) 09.30.12

9/30/2012 CNY HSBC Flash Manufacturing PMI (1500 HI time / 2100 EDT)
Forecast: 49.9
Actual: 49.8
Previous Revision: n/a
SPIKE with 2nd peak
Started @ 1.0294
1st Peak @ 1.0283 – 1501 (1 min)
11 ticks

2nd Peak @ 1.0266 – 1548 (48 min)
28 ticks

Reversal to 1.0274 – 1557 (57 min)
8 ticks

Notes: Nearly matching report disappointed the traders. This caused a small short spike of 11 ticks that peaked on the :01 bar, crossed all 3 of the major SMAs and the S1 Pivot and was unable to sustain the drop. The market had been trading sideways prior to the report. With JOBB, you would have filled short at 1.0290 with no slippage. Close out at the S1 Pivot at 1.0284 for 6 ticks. After struggling to penetrate the S1 Pivot, it was able to dive for a protracted 2nd peak of 28 ticks 48 min later, penetrating the LOD. The reversal yielded only 8 ticks in about 9 min after the 2nd peak, unable to change the sentiment in a bearish environment. The market continued lower an hour later, but not likely due to the influence of this report.