Oct 032012

CL 11 12 (1 Min) 10.03.12

10/3/2012 Monthly ISM Non-Manufacturing PMI (0400 HI time / 1000 EDT)
Forecast: 53.2
Actual: 55.1
Previous Revision: n/a
Started @ 90.12
1st Peak @ 90.28 – 0401 (1 min)
16 ticks

Reversal to 89.25 – 0408 (8 min)
103 ticks

Notes: Positive report moderately exceeded the forecast. This caused a 16 tick up spike on the :01 bar, which was unable to go any higher and promptly plummeted. Since the global economic fears took center stage again today, oil was selling off the entire session. This report caused a brief respite for the bulls, but when the report was realized, the bears took over and caused the huge reversal of 103 ticks. With JOBB you would have filled on the long entry at about 90.20, then had an opportunity to close out with about 5-7 ticks as it hovered hitting resistance at the 20 SMA. With the bearish mood of the day and the 20 SMA able to prevent any further upward movement, that is the place to get out before the nose dive.