By Darrell Martin
Pricing, spending and income are all tied together and give an important picture on the activity of the economy. The following reports are due to come out this week at 8:30 AM ET, Thursday, June 25, 2015:
Core PCE Price Index
Personal Spending
Personal Income
The Core PCE Price Index is the percentage change of the previous month, in the price of goods and services purchased by consumers. This report excludes food and energy though. It is thought to be the Federal Reserve’s favorite inflation measure. Personal Spending is the percentage change in inflation adjusted value of expenditures by consumers. Consumer spending has a huge rippling effect in the economy which gives it extreme importance when reading economic health. Who can spend if they don’t have personal income? As you can imagine personal income is the the change in income value received by all consumers.
Two EUR/USD Spreads For Your Iron Condor Strategy
These three reports come out and tend to move the market and then the market tends to pull back making an Iron Condor an ideal strategy for this trade. Using Nadex EUR/USD Spreads you can buy the lower spread and sell the upper spread. The lower spread’s ceiling should be where the then current underlying market is and the upper spread’s floor should be where the then current underlying market is trading. You can enter your spread trades at 7:00 AM ET for 9:00 AM ET expirations. The profit potential for this trade should be $25 or more, or no trade.
50 Pips Up Or Down And Still A 1:1 Risk Reward Ratio On This Trade
An Iron Condor is a low risk strategy. The market can move a great deal and still be low risk with the Iron Condor strategy. On this trade setup for example the market can move 50 pips up or down and remain around that price and still have a 1:1 risk reward ratio. Ideally you want the EUR/USD to make its move and then return as close as possible to the center of your Iron Condor where you can make max profit. For every pip away from the center the market pulls back to, that is $1 less in profit. You can leave the trade on until expiration to give the market plenty of time to pull back as well.
If $25 seems low for profit, then you can also trade more spreads. Just be sure you have an equal number of spreads on each side of your Iron Condor. To see an example of an Iron Condor trade go to The Awesomeness Of An Iron Condor by Darrell Martin. For a full calendar of news events to trade along with strategies go to www.apexinvesting.com. Nadex Spreads can be traded from 49 different countries.