-102312.jpg "Click to enlarge")
10/23/2012 CNY HSBC Flash Manufacturing PMI (1545 HI time / 2145 EDT)
Forecast: n/a
Actual: 49.1
Previous Revision: +0.1 to 47.9
Spike WITH 2nd peak
Started @ 1.0251
1st Peak @ 1.0268 – 1547 (2 min)
17 ticks
Reversal to 1.0258 – 1548 (3 min)
10 ticks
Final Peak @ 1.0273 – 1623 (38 min)
22 ticks
Reversal to 1.0262 – 1659 (74 min)
11 ticks
Notes: Report impressed the traders, with a negligible positive previous report revision. This caused a long spike of 17 ticks that peaked on the :47 bar. The market had been trending higher before the report after a positive CPI report 75 min earlier, so no SMAs were crossed, but the R2 Pivot was crossed near the origin. With JOBB, you would have filled at 1.0257 with 1 tick of slippage, then had an opportunity to exit with 7-9 ticks as it peaked. It quickly reversed for 10 ticks, then climbed for a slightly higher peak, backed off, then achieved the final peak of 22 ticks 38 min after the report. The final reversal yielded 11 ticks in 36 min after the final peak, crossing the 50 SMA and bottoming on the 100 SMA.