Core CPI numbers, Bounce off Moving Averages, Stochastic, MACD --> $240 profits
5 minute Nasdaq Emini 100
Hi,
How's the trading going? Today's a choppy day. How do I know? After watching the price action everyday for the past few years, you can tell when price is not moving right. My advice? Beginners stay out of this kind of market and conserve your capital. No Ego trading please.
For this trade, I had to wait till price pulled back to the moving averages at around 13:00 pm and on the bounce off from the blue moving average, I longed 1 contract at 1844.. I longed another 2 contracts at 1847 when it crossed the other moving averages.. Notice how Short- term MACD crossed it's signal line after I entered?
I exited at 1850 when price exhibited some resistance. Note that this is also the opening price, it's natural for price to show resistance here. Profits = $240.
Fundamentals:
The March core CPI was up just 0.1%. A gain of 0.2% was expected. This brought the year-over-year increase down slightly to 2.5% from 2.6%. The total CPI was up 0.6% as energy prices jumped 5.9%. Housing starts posted a small 0.8% gain in March, but any gain is good for that sector. Starts have been trending flat for five months now. That is a substantial improvement from the steady declines of mid-2006. For housing, flat is good right now.