CAD RETAIL SALES REPORT PROVIDES SOME QUICK PROFITS FOR TRADERS
This morning we were watching the Canadian Retail Sales
figures, and I mentioned in the Live Trade Room that you could
change your safe trigger from 0.4% to 0.5% as the Bank of
Canada was expected to change rates only 30 minutes after this
trade. While we were in the Live Trade Room, and a few minutes
before this release, the US Fed cut key interest rates by .75%,
which had a strong impact on the market as well. Because of
this, I urged caution for this news release.
The actual number came out with a deviation of 1.2%, so it met
our safe sell trigger and many traders entered this trade.
There was a quick 30 pip spike down on the EUR/CAD, and several
traders reported making profits of up to 20 pips on this
trade. We also had some traders report losses as the market
started moving back up in anticipation of the BoC rate cut. To
see the video from this trade, click on the link below:
TRADING OPPORTUNITY TONIGHT
There is an opportunity to trade tonight when the Australian
CPI report is released at 7:30 pm EST. Your focus should be on
the CPI (QoQ) figure, and the expectation for this report is be
1.0%. We have placed a safe trigger of 0.3% for this release.
This report met our safe trigger two times last year, and the
AUD/USD moved over 50 pips each time. You will need to be
careful though, and keep a close eye on the CPI Trimmed QoQ
component. Last month the market went the direction of this
component (after a quick 20 pip spike) and against the
direction of the main CPI number. If these two components
conflict with each other, you will want to get out of the
market quickly. We will not have the Live Trade Room open, but
I wanted to make you aware of this potential trade opportunity.
OUR NEXT LIVE ON THE NEWS TRADE CALL
Our next Live on the News trade call will be on the UK GDP
Report that will be released tomorrow at 4:30 am EST. The
expected number for this report is 0.5%. A higher than
expected number will be good for the GBP and signal a long on
the GBP/USD, and a lower than expected number will be bad for
the GBP and signal a short on the GBP/USD. We will be looking
for a deviation of 0.2% on this report to trigger us into a
safe trade. We may decide to lower the trigger tomorrow as
this report seldom meets our safe trigger.
This report last met our medium trigger of 0.1% in November and
provided traders with up to 45 pips of profit. To see the
video of November’s trade, click on the following link:
Good Luck!!!!
