Jul 182012

CL 09 12 (1 Min) 07.18.12

7/18/2012 FED Beige Book (0800 HI time / 1400 EDT)
Forecast: n/a
Actual: n/a
Started @ 90.07
1st Peak@ 90.26 – 0804 (4 min)
19 ticks

Reversal to 90.00 – 0812 (12 min)
26 ticks (2x bottom)

Notes: Report was satisfactory and tame overall showing modest to moderate growth in most sectors, with slowing growth in a few others. This caused a muted reaction overall. Since the market was in a choppy pattern before the report broke, it continued in to exhibit the same behavior with little impetus to deviate. At the release it continued its rise from the low of 89.84 before the report to achieve a peak of 19 ticks at 90.26 on the :04 bar, crossing the R1 Pivot. Then it fell to 90.00, crossing the R1 Pivot, the 50 SMA, and bouncing off of the 100 SMA. Then it chopped sideways for 2 hrs between the R1 Pivot and the 200 SMA until it climbed above the R1 Pivot late in the trading day. Not a great setup for JOBB, it would have the appearance of a dull report, barely filling and failing to launch. Still it would have been good for a handful of ticks. The long wicks and tails signal lack of conviction and heavy HFT influence.