[quote=DarkstarLike I said in another post; news trading is much more complicated then just straddling the price or trading in the direction of the miss. It is a rare event that the consensus numbers are what the market is actually pricing. You can make some sick money doing it, but you should expect it will require work do to so. Today was a flawless example...[/QUOTE]
Au contraire,
Today was a great day to straddle, take the initial push and liquidate your position. That was worth 20 - 30 pips. If you were paying attention, the run up to the announcement was profitable in terms of dollar weakness as that's when the market priced in the weak announcement. So if you expected negative housing numbers you made money on the run-up and squeezed another 20 odd pips from the straddle.
Housing was followed by oil inventories at 10:30 am est. Dollar weakened further. That's additional income on the retracement.
Then further profits on the huge decline, when cable fell below its 365 ema, (dollar strength). I think this was attributable in part to Iran's expected announcement that it's going nuclear and the west's reaction. CNBC mentioned it as a market factor and I think they got it right.
Au contraire,
Today was a great day to straddle, take the initial push and liquidate your position. That was worth 20 - 30 pips. If you were paying attention, the run up to the announcement was profitable in terms of dollar weakness as that's when the market priced in the weak announcement. So if you expected negative housing numbers you made money on the run-up and squeezed another 20 odd pips from the straddle.
Housing was followed by oil inventories at 10:30 am est. Dollar weakened further. That's additional income on the retracement.
Then further profits on the huge decline, when cable fell below its 365 ema, (dollar strength). I think this was attributable in part to Iran's expected announcement that it's going nuclear and the west's reaction. CNBC mentioned it as a market factor and I think they got it right.