Fed Governor Susan Bies Moved the Market? Or We knew that already? $930 profits
5 minutes Nasdaq Emini 100
Hi,
Yesterday was a holiday.. President's day... so Today's effectively the first trading day of the week. Market opened with a gap down and it even plunged lower.. I made some money by shorting, playing on pure price action and momentum... (not shown in the figure above, this trade is not recommended for beginners)...
But more importantly,, the real deal came at 10:00. when price started to rebound... you can see a hammer at 10:05? yes, that was the start of the rebound... I have to wait for further confirmation before i go long.... Stochastics started to cut from oversold level of 20 and MACD also crossed the signal line... this together with the strong price action was enough for me to go long at 1822..
I longed another 2 contracts at 1825 and you can see strong support given by the moving averages.. the trade's smooth sailing after that... It closed the gap... I was cautious when it closed the gap and expected a rebound... but it busted way far beyond the gap.. I simply let my profits run...
Exit
Price action started to trouble me... no momentum and stochastics and MACD seemed to have peaked.... I exited at 1839.5... with $930 profits...
notice that stochastics turned down from level 80 and MACD crossed its signal line shortly after I exited?
Fundamentals
According to the press, it was Susan Bies who made the market moved... Well,, I didn't know that when I was entering my trade... :p
comments from outgoing Fed Governor Susan Bies, who said the country may be seeing a bottom in slumping demand for housing, alleviated some worries that the downturn will drag down the rest of the economy. Her remarks echoed those of Fed Chairman Ben Bernanke last week, who predicted that the economy will keep growing at a modest pace.