Core CPI --> Gap up --> Gap Closed and bounced--> $390 profits
5 min emini nasdaq 100
Hi,
Today's the CORE CPI data was released and the market gapped up on the opening bell...
From Briefing.com:"
The August core CPI was up 0.2%. That was in line with expectations, but still marks the second straight month of a modest increase at that level after four straight months of a 0.3% increase. The lack of an uptrend in core inflation was a great relief to the stock market. The total CPI was also up only 0.2%. There is even an excellent chance of a drop in total CPI next month, as the recent drop in gasoline prices could pare 0.5% off the index."
Seems like the gap up is due to 2 reasons, the fall in oil and better than expected consumer sentiments.. anyway, The market gapped up by 14 points and I wasn't very comfortable with it. I didn't want to play the gap closure since for such huge gaps, the market usually don't close up...
BUT, it turned out that the gap did close and I lost an opportunity to earn at least a few hundred ... My play however was safer and lower risk...
I longed one contract at 1648 when the gap closed and bounced up from the moving averages. Secondly, the stochastics... bounced up from the oversold region.. This was enough of an entry signal for me. I longed another 2 contracts at 1649.5.... My stop loss was at 1645. only 3 to 4 points down from entry... and my profit target was at 1655.5 which is a resistance established by the morning session....
At 14:35.. My profit target was hit and I am automatically out of the market with $390 profits.