This is always the hardest part about trading. You really have to think where the market is positioned ahead of such news and then act accordingly. Think about who might be left to buy or sell on pre positions. It is only the truely suprising moves that seem to have legs. This inflation news was pretty ho hum and largely discounted.
As an example, last GDP report out of Aussie was expected to be .5% - it came in at a real suprise of 1.0% - Aussie gapped as shorts covered then collected for a bit as there were no more short term traders left to buy, then moved higher as the brits woke up to the news and took positions. That kind of suprise can lead to a better long term move than something that is a little more expected. Does that make any sense?
|