12/11/2012 World Agriculture Supply and Demand Estimates (WASDE) – Corn (0330 HI time / 0830 EST)
SPIKE WITH 2ND PEAK
Started @ 726.50
1st Peak @ 732.00 – 0331 (1 min)
Reversal to 725.50 – 0332 (2 min)
2nd Peak @ 733.75 – 0336 (6 min)
Reversal to 726.25 – 0342 (12 min)
Notes: Report Reaction caused a long spike of 22 ticks, that was unsustainable crossing only the PP Pivot. After hovering for 10 sec, it reversed and surrendered all of the long move, for a 26 tick reversal on the :32 bar. Prior to the report, the market had been trading in a very tight range as the HOD and LOD were only separated by 15 ticks. With JOBB, you would have filled long at 727.75 with no slippage, then had an opportunity to exit with up to 16 ticks as it peaked and hovered at 732.00. The last 2 months reports, we have seen the same trend of a spike, quick reversal, then a 2nd peak of a few more ticks. If this continues, after the quick reversal, look to trade the 2nd peak and place your target 2-5 ticks greater than the 1st peak.