By Darrell Martin
When you think of Philadelphia you might think of their cheesesteaks, the Liberty Bell or one of their many sports teams like the Eagles, Flyers, 76ers or Phillies.
They have something else they are known for and it’s their Fed Manufacturing Index. This report, the Philly Fed Manufacturing Index, is released by the Federal Reserve Bank of Philadelphia this week on Thursday, January 15 at 10:00 AM EST.
This report is released monthly usually in the middle of the month. Its measurement is based on a survey of 250 manufacturers based within the Philadelphia Federal Reserve District which includes eastern and central Pennsylvania, the nine southern counties of New Jersey, and Delaware. Of the regional manufacturing reports released, this report is released second just behind the Empire State Manufacturing Index from New York. The 250 manufacturers are asked to rate the current business conditions and so this report can be a proxy for nationwide manufacturing conditions. If the actual number is greater than forecast then it’s good for currency.
A great way to trade this kind of news report is using Nadex Spreads. Since it is not known exactly which way the market will move, using an Iron Condor Strategy, which can profit should the market move up or down, is a good strategy here. An Iron Condor uses two spreads.
After the market reacts and moves from the news event, if the market settles anywhere within your Iron Condor range you profit, with the most profit being if it settles in the middle of the spreads. You can enter your spreads as early as 9:00 AM EST using an 11:00 AM EST expiration. The market to trade for this event is the EUR/USD.
To setup your first spread you want to sell what is called an upper spread with its floor where the current market price is, and then buy a lower spread with its ceiling where the current market price is. This will set you up with your upper spread’s floor price being the same as your lower spread’s ceiling price. The minimum combined profit potential should be $25.
If you can’t plan a trade for a minimum profit potential of $25 then there is no trade. The greatest movement in the market will usually happen after the news is released and then the market will settle.
You can wait till expiration and if the market expires anywhere within your iron condor range you will profit with the greatest profit potential being if the market settles right in the middle of your two spreads.
If $25 isn’t enough profit for you don’t despair. You can just trade more spreads, i.e. trading 10 spreads, your minimum profit potential would be $250.
Now if you make your $25 or better yet $250, you can go and enjoy one of those Philly Cheesesteaks and maybe take in an Eagles game if you’re there. Otherwise, you can indulge in those, in your locale in the spirit of Philadelphia!
A complete monthly news plan is available at Apex, to trade a variety of markets based on numerous news events. If you would like to learn more on how to trade Iron Condors or trade other news events, go to www.apexinvesting.com. Apex Investing Institute offers free education, and free access to the Nadex Binary and Spread Scanner Analyzers. Member traders are invited to trade in the rooms, take advantage of trade signal services, have key indicators and access the Apex Forum. The forum content is updated daily and includes over 9000 members. In a supportive learning community of seasoned as well as up and coming traders, traders of all levels learn how to trade Nadex binaries and spreads in depth, as well as futures, forex, stock and options, and gain an edge for successful trading overall.