6C 12 12 (1 Min) 10.19.12

10/19/2012 Monthly Core CPI / CPI Report (0230 HI time / 0830 EDT)
Core CPI Forecast: 0.3%
Core CPI Actual: 0.2%
Previous Revision: n/a
CPI Forecast: 0.3%
CPI Actual: 0.2%
Previous Revision: n/a
SPIKE/REVERSE
Started @ 1.0091
1st Peak @ 1.0077 – 0231 (1 min)
14 ticks

Reversal to 1.0106 – 0305 (35 min)
29 ticks

Notes: Report barely fell short of the forecast on the core reading and the less influential regular CPI reading. With a bearish market before the report causing a slightly oversold sentiment, the spike was quick and unsustainable as it crossed the S2 Pivot. With JOBB you would have filled short at 1.0082 with 6 ticks of slippage, then seen it retreat to hover around 1.0087. Close out there with about 5 ticks of loss, before it heads to your stop loss. With a narrowly disappointing report, and the strong support of the S2 Pivot, the short move is over. The reversal gained 15 ticks beyond the origin in about 30 min to cross the 50 SMA and hit the 100 SMA.