By Darrell Martin
The report on US New Home Sales comes out on Friday, October 24, at 10:00 AM. The report has an affect on the EUR/USD market making it a good one to trade that morning.
This is a monthly report that gives an annualized number of new single-family homes that were sold during the previous month, therefore, the monthly number will be multiplied by 12.
This particular number is a leading indicator of economic health. When a new home is purchased, many other things are purchased such as appliances and furniture, as well as home indoor and outdoor design and upgrades. In addition, there is a mortgage that is taken out and then sold by the financing institution.
If the actual number reported is greater than what is forecast, then it’s good for currency. The forecast this month is 473k and last month was 504k.
It is unknown what the actual number will be at this point in time however, from previous reports, it has been determined that an Iron Condor is a good strategy for this report based on the average moves.
An Iron Condor is buying the lower spread and selling the upper spread with the upper spread’s floor being the same as the lower spread’s ceiling. For this trade you want an Iron Condor with a minimum potential profit of $30. You will want to enter as early as 9:00 AM EST with an expiration of 11:00 AM EST.
An Iron Condor is a neutral strategy anticipating the market after making any moves, to come back to the center of the Iron Condor for maximum profit. This is a strategy that has been researched and based on back tested statistics at APEX Investing Institute.
Apex has a complete monthly news plan 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 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.
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