EIA Study Paid Off

Today was a wild day as far as the market was concerned. Big news was coming out in the morning and the whole day was flooded with earning reports. The first number out was the existing home sales. They were down way way way more than expected. The expectation was for them to drop 1% but they dropped over 5%. I quickly took this to be positive for the 2 year and 5 year prices. I went long but they stagnated and I stopped out for a one tick loss. Not bad though, it's good to know how the bonds act in such a critical time (January FOMC is coming in 6 days). The second number was the EIA. I knew that the market didn't act on Crude as much as it did Gasoline. When the numbers came out Crude inventories dropped WAY below expectations. My first thought used to be, "GO SHORT GO SHORT AAAH" but then I kept reading the numbers. There was a huge build in gas stocks! I decided not to do anything at all. That was smart because after crude spiked for about half a second it continued going down because of the gasoline news, and thus the market was unaffected. I'm pretty happy about that as you can tell.

Final day's P/L $2500, because I played the bonds short expecting them to continue trending that way after analyzing some technical analysis. But I look at the days success because I didn't freak out about the crude numbers.