Core CPI up 0.2%, Shorted, Reversed and Long --> $1000 profits [Caveat: Novice Don't Try this]
5 min Emini Nasdaq 100
Hi,
Core CPI data was released at 8:30 am this morning.. and April was up 0.2%. So is that good? Well, don't ask me, I'm a trader not an economist... According to Briefing.com it's good.. So we go long?
Hardly... Today I made 2 trades... the first trade was short, then followed by a long... normally I don't reverse my trades immediately after exiting.. but today just happens to be such a day ... You will see that my indicators provided the signals... and both entries are perfectly valid...
Trade 1
Stochastics downturned, plus price moved down from moving averages, basically, the moving averages served as resistance above which I placed my stop loss... good risk/reward return...
I shorted 1 contract at 1898 almost at the open and another 2 contracts at 1895 as price plummeted and Short-term MACD cut its signal line... I finally exited at 1889 when stochastic appeared to be turning up.. profits of $300.
Trade 2
I exited at almost the low,, and I was observing the price action... there's a hammer and stochastic appeared to turn up... but I wasn't sure... but then...price action really accelerated in the 1 min chart and I entered 1 contract at 1891... and another 2 contracts at 1894.5 when price paused for a while... after that.. it was simply a matter of keeping my cool and waiting for profits... price surged pass the moving averages cutting through all of them with a huge white candlestick... I finally exited at 1905 when red candles started to appear... $700 profits...
I just happened to caught the Highs and the Lows today... :P total profits = $1000.
From Briefing.com
The April core CPI was up 0.2%. That was in line with economist forecasts but there were hopes of a 0.1% increase. It was up just 0.1% in March, and the April core PPI was 0.0% as reported Friday. A 0.1% increase probably would have given the stock market a solid boost and renewed talk of a potential Fed rate cut just months down the road. It provided the best opportunity on the list of scheduled events to re-invigorate the recent bullish sentiment.
The 0.2% core gain is certainly not bad, and the year-over-year increase now sits at just 2.3%. The trend is steady and the overall rate is not terribly worrisome. It won't alleviate concerns at the Fed, however. They continue to emphasize that inflation is the predominant concern and recently rising energy prices and continued tight labor markets raise the risk that inflation pressures pick up. Today's data won't increase the Fed's inflation concerns, but they won't alleviate them either.