By Darrell Martin
Various reports are being released for the US on Thursday, December 22, at 8:30 AM ET. Included are:
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Core Durable Goods Orders
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US Final GDP
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Durable Goods Orders
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Final GDP Price Index
The Final Gross Domestic Product is released quarterly and is the change in value of all goods and services produced. It is inflation adjusted. Core Durable Goods Orders is based on orders placed with manufacturers noting the change in total value of new purchases. However, it excludes transportation, which can be volatile and skew the numbers. Of the four reports, these two have the most impact with the markets and can be traded.
The trade strategy must consider consistency in market movement and reaction to these past news events. The market can react, going long or short and the strategy must be ready. Based on past market reaction over 12 - 24 months, it has been found the market will move an average of 30 pips and has a pull back. With that in mind, an Iron Condor setup, using Nadex spreads can make for a high probability trade.
One EUR/USD Nadex spread is bought below the market and one EUR/USD Nadex spread is sold above the market. The ceiling of the bought spread should meet the floor of the sold spread and be where the market is trading at the time. Both spreads should have a profit potential of around $17 or more for a combined profit potential of at least $35. Entry can be as early as 8:00 AM ET for a 10:00 AM ET expiration.
This setup is prepared for the market to make its move up to 35 pips in either direction for breakeven and out to 70 pips up or down and still be at a 1:1 risk reward ratio. One side may profit first. The other side can be left on ready for a pull back and possibly profit as well.
Stops should be placed at the 1:1 risk reward ratio points 70 pips above and below from where the market was at entry. If the market settles anywhere in between the breakeven points, the trade will profit.
To easily learn how to setup an Iron Condor and trade the news, use the spread scanner. Filters narrow down the spread selection to the market and time frame needed. Visual and number indicators clearly show which spreads have the reward potential needed. Trade tickets provide easy clear execution for entry as well as placing stops. Below is an image of the spread scanner. It is intuitively designed for beginner traders to easily learn and trade spreads. Its rich features provide viewing of all needed information on multiple markets in one screen for the advanced trader.
Free access to both day trading education and the spread scanner is available at www.apexinvesting.com.