Mar 262012
 


CL 05 15 (1 Min) 03.26.12

3/26/2012 FED Chairman Bernanke Speech (0200 HI time / 0800 EST)
Forecast: n/a
Actual: n/a
SPIKE WITH 2ND PEAK
Started @ 106.62
1st Peak @ 106.85 – 0201 (1 min)
23 ticks (2x top)

2nd Peak @ 107.09 – 0205 (5 min)
47 ticks

3rd Peak @ 107.22 – 0214 (14 min)
60 ticks

Final Peak @ 107.32 – 0221 (21 min)
70 ticks

Reversal to 107.00 – 0236 (36 min)
32 ticks

Notes: FED Chair Bernanke hinted strongly that QE3 is coming soon due to the perceived problem of long term unemployment still dragging the economy down. The markets liked that and it put traders in a buying mood. You would also notice that your order did not fill until about 20 sec into the :01 candle. For the FED reports that is okay as the reaction is delayed, but not dull. With the report crossing the 50 and 100 SMAs, you would be wise to exit near the top of the :01 candle. After seeing that it never dropped below the 50 SMA on the next two candles, it is gearing up for a 2nd peak and you could enter another buy order on the 02:03 candle as it ascends. While it hit its successive peaks the retracement never crossed below the 13 EMA. Also notice the MACD did not flatten until at/after the final peak.