Feb 292012

CL 04 12 (1 Min) 02.29.12

2/29/2012 FED Beige Book (0900 HI time / 1400 EST)
Forecast: n/a
Actual: n/a
Started @ 106.10
Peak@ 107.21 – 0938 (38 min)
111 ticks.

Reversal to 106.82 – 1006 (66 min)
39 ticks

Notes: Report was satisfactory overall showing moderate growth in most sectors, and greater growth in others. After 2 rises with subsequent gap closes right out of the gate, it rose about 100 ticks from 0920 to 0929. The short term market was a bit oversold due to the 237 tick drop from FED Testimony earlier in the morning, and this report provided the necessary catalyst to buy. As before, DO NOT USE JOBB, although it would have worked out for you in this case. After about 3-4 min the direction is still not obvious, so I would wait. The first series of candles that give me an obvious indication are the long tails in the 0917 – 0920 area coupled with the inability to touch the 50 SMA. I would buy around 106.25 on the 0922-0923 candle and close at 0931 around 107.05.