5/9/2014 World Agriculture Supply and Demand Estimates (WASDE) – Corn (1200 EST)
Forecast: n/a
Actual: n/a
SPIKE / REVERSE
Started @ 519.25
1st Peak @ 522.75 – 1200:00 (1 min)
14 ticks

Reversal to 513.75 – 1200:26 (1 min)
36 ticks

Double Top @ 522.75 – 1201:16 (2 min)
36 ticks

Reversal to 510.75 – 1205 (5 min)
48 ticks

Pullback to 519.00 – 1214 (14 min)
33 ticks

Reversal to 505.75 – 1234 (34 min)
53 ticks

Notes: Report Reaction caused a choppy and relatively small bullish reaction initially that turned into a short move at the end of the :01 bar. It climbed only 14 ticks, crossing the R2 Pivot, then reversed after about 7 sec reaching the origin in 9 sec, then 36 ticks after 26 sec. With JOBB, you would have filled long at about 520.75 with 1 tick of slippage, then seen it give only 5 ticks of profit for 3 sec before it started to back off. As this report can reverse quickly this is a trigger to exit near breakeven. This would have been achieved with an exit within the first 7 sec. After the large reversal, it climbed for a double top on the latter part of the :31 bar and early :32 bar. Then it continued to chop as it fell, neary reaching the S2 Pivot after 34 min. As this report can reverse quickly, it would be prudent to “reverse” the trade after the observation of the initial behavior or enter a short trade on the double top and look for 20-30 ticks.

3/10/2014 World Agriculture Supply and Demand Estimates (WASDE) – Corn (1200 EST)
Forecast: n/a
Actual: n/a
SPIKE / REVERSE
Started @ 485.00
1st Peak @ 487.50 – 1201 (1 min)
10 ticks

Reversal to 481.00 – 1202 (2 min)
26 ticks

Pullback to 486.00 – 1209 (9 min)
20 ticks

Reversal to 475.50 – 1244 (44 min)
42 ticks

Notes: Report Reaction caused a choppy and relatively small bullish reaction initially that turned into a short move at the end of the :01 bar. It climbed only 10 ticks, crossing the 100 / 50 SMAs and S1 Mid Pivot, but was unable to penetrate the HOD at 11 ticks, before backing off and chopping between the origin and 486.75. With JOBB, you would have filled long at about 486.50 with 1 tick of slippage, then seen it bounce above and below the fill point. After noticing the small spike of only 10 ticks and the HOD untested, look to exit near breakeven by moving the profit target to the fill point and your stop up to 484.50 (-8 ticks) which was just below the support line seen on the last 5 min. You would have opportunities to exit at breakeven up to 16 sec and again at 48 sec before it reversed to close our the bar. It continued to reverse through the S1 Pivot on the :02 bar for a total of 26 ticks. After a pullback of 20 ticks in the next 7 min back to the S1 Mid Pivot, it fell for a reversal of 42 ticks in the next 35 min as it crossed the S2 Pivot. Due to the changing trend of this report, we are evaluating alternate approached and/or the ZS to trade.