Jul 112012

ZC 12 12 (1 Min) 07.11.12

7/11/2012 World Agriculture Supply and Demand Estimates (WASDE) – Corn (0230 HI time / 0830 EDT)
Forecast: n/a
Actual: n/a
Started @ 726.00 – 0229
1st Peak @ 746.75 – 0233 (4 min)
83 ticks

Reversal to 727.75 – 0254 (25 min)
76 ticks

Notes: Report Reaction caused a large long spike of 83 ticks over 4 min, crossing no SMAs, but the R2 – R3 Pivots. It peaked 33 ticks above the R3 Pivot, so no real resistance was encountered. Prior to the report, the market had been trending upward, but still just breaking out of a very tight range as the HOD and LOD were only separated by 25 ticks before the HOD was extended. With JOBB, you would have filled long at 728.50 with 3 ticks of slippage, then had an opportunity to exit with at least 40 ticks at the R3 level as it eclipsed the R3 Pivot then sought out much more. It reversed for 76 ticks in the next 21 min, eclipsing the R2 Pivot and nearly reaching the 100 SMA. After that it bounced up to the R3 Pivot, fell again to the 100 SMA, came back up to the R3 Pivot, then became sandwiched between the R3 Pivot and 100 SMA.