Feb 082014

6J 03-14 (1 Min)  1_17_2014

1/17/2014 Prelim UoM Consumer Sentiment (0955 EST)
Forecast: 83.4
Actual: 80.4
Anchor Point @ 0.0009588 (recent avg)
Trap Trade:
)))1st Peak @ 0.009598 – 0955:14 (1 min)
)))10 ticks

)))Reversal to 0.009584 – 1003 (8 min)
)))-14 ticks

Trap Trade Bracket setup:
Long entries – 0.009580 (no SMA/Pivot within 5 ticks) / 0.009574 (in between the S1 Mid Pivot and LOD)
Short entries – 0.009597 (just above the R1 Mid Pivot ) / 0.009603 (just above the HOD)

Notes: Report came in mildly lower than the forecast by 3.0 points causing a long impulse on the 6J for 10 ticks as it eclipsed the R1 Mid Pivot. That would have easily filled the inner short entry with 1 tick to spare. Then it would have hovered around the R1 Mid Pivot for 2 bars before falling. Move the stop loss to 0.009601, just above the HOD (-4 ticks), then be patient and wait for it to fall to at least the 50/100 SMAs, and likely the 200 SMA / PP Pivot. It reached both barriers at 10:01 and 10:03 respectively, allowing up to 12 or so ticks to be captured with ease. This is a Trap Trade that you can be patient and wait for the reversal for several bars. It continued to hover near the PP Pivot and 200 SMA for 10 min before it rose again and traded sideways.