1/25/2013 Monthly Core CPI / CPI Report (0830 EST)
Core CPI Forecast: -0.2%
Core CPI Actual: -0.6%
Previous Revision: n/a
CPI Forecast: -0.2%
CPI Actual: -0.6%
Previous Revision: n/a
SPIKE/REVERSE
Started @ 0.9922
1st Peak @ 0.9896 – 0831 (1 min)
26 ticks
Reversal to 0.9918 – 0841 (11 min)
22 ticks
Notes: Report fell well 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 large, but crossing the S3 Pivot made it unsustainable and brought on a quick reversal. With JOBB you would have filled short at 0.9916 with 2 ticks of slippage, then seen it shoot down and hover between 0.9896 and 0.9908. I would place a buy limit order at the lower end of the tail (0.9897) and move the stop loss to 0.9913, 2 ticks above the S3 Pivot. You would get up to 19 ticks. After the peak, the selling momentum ran out and the S3 Pivot pulled it back up for a 22 tick reversal in only 10 min.