OUR LAST LIVE ON THE NEWS TRADE CALL
Today we were watching a couple of different reports with the focus on the Core PCE. This release came out as expected so there was no trade. The US Personal income came out .2 higher than expected which was the only thing that came out far enough off to affect the market.
In the video you will see that the only clear cut deviation we had was the Personal Income signaling a short however this was not the focus of the trade and the personal spending was conflicting so we didn’t enter however you can see in the video how much time goes by before the tick chart starts to move down. To view the video www.forexmastermaker.com/vid/uscorepce103006.swf
OUR NEXT LIVE ON THE NEWS TRADE CALL
Tomorrow we have Canadian GDP expected at .3%. I would like to see around .3% in deviation on this trade. This is not the best moving release however if you can get a good entry you should be able to carve out a few pips. We are likely to see around 20 to 25 pips on this release.
Revisions can affect the market and occur on 40% of these releases so we will be watching that as well. Let me take some time to explain how revisions work and what they are.
A revision occurs when the analyst realize that the number they released last month was wrong. Revisions can have a huge impact on the market. Last Non Farm was a great example of how important revisions are to a trade. A revision works much like deviation works.
The market has already adjusted for last months release just as it has adjusted for the expected number for this months release. When the number for this month comes out something other than what was expected or last months number is revised (changed) it is a shock to the market and it quickly adjusts for the new numbers.
Both the newly released number and the revision will have the same affect i.e. if the Non Farm for instance is revised up it will strengthen the US dollar just as if the current release was released higher than expected.
In last months Non Farm we had a release that was way Lower than expected which resulted in a buy signal and a very nice move up however there was a revision that came out within a few seconds of the release that was better than expected and moved the market back down past open price. To see a video of this
So this is exactly what I will be doing tomorrow. If the Cad GDP comes out at .6% I will go short on the USD/CAD and if the number comes out 0.0% I will go long on the USD/CAD. If there is a revision I will close the trade immediately if it conflicts with the trade direction.
Good Luck trading!!!
