Written by Barry Battista
Tuesday, November 16th, 2010
Both the trades this morning were good Straddle trades, although neither hit the Oracle Trader triggers. Hope a bunch of you got in and made some money. Tomorrow we have:
4:30 AM EST
GBP Claimant Count change – Change in the nunber of people claiming unemployment benefits for the previous month
GBP/USD
This is the British equivalent of the Employment trades for all the other countries but for some reason the British one is not that big of a mover. I trade it anyway. I would use a medium of 15 and a safe of 20 on the Oracle Trader, with maybe 1/4 lots on a medium and 1/2 the normal lots on a safe. In August this came out at 13.2 and 0 (there are 2 rows of data) and the spike was only 20 pips, with a revision of 4.9 in the same direction. In September it came out at 5.3 and 0, and also spiked 20 pips, but retraced quickly. In October it came out at .8 and 0, with no spike at all. Trade sparingly with this one. I will also trade the Straddle with a maxspread of 6 on the GBPUSD.
8:30 AM EST
US Core CPI m/m – Change in the price of goods and services bought by consumers, excluding food and energy.
EUR/JPY or USD/CHF
Like most CPIs, we haven’t gotten much of a deviation in this release over the last few months. In August, we had a 0 deviation and 0 pip spike. In September it came out at -.1 and 0 (2 rows for this release) and the spike was also 0. In October it was -.1 and 0, with a 6 pip spike. We have little to go on over the last 3 months. I would go with .2 medium and .3 safe on row 1 on the Oracle Trader, and trade sparingly. If you are going to trade the Straddle, use the USDCHF, low lots, and a maxspread of 5. Get out of the Straddle immediately if there is no spike.
