By Darrell Martin
If you’re new to trading, you might be scratching your head about the Durable Goods reports, and yes, that is plural. On Friday, August 25, 2017, at 8:30 AM ET, US Census Bureau will release four different reports related to durable goods.
What are Durable Goods? It might be easier to explain what durable goods are not. These things are immediately consumed in one use or have a shelf life of less than three years. Durable goods could be defined as hard goods. Items such as household appliances, machinery or sports equipment are things that are not consumed in one use and can be used for usually three or more years.
What are these reports? The Durable goods reports differ slightly from each other, even though they are all released by the Census Bureau. They all measure the value of orders received in a given period of time. Their differences lie in what is counted in the orders.
Core durable goods orders measures the change in the total value for long lasting manufactured goods, excluding transportation items. It has the highest importance. It is forecast to have a reading of 0.4 percent with its previous reading having been 0.1 percent. For all reports, a higher than expected reading should be taken as positive/bullish for the USD. Lower than expected should be considered negative or bearish for the USD.
Durable goods orders (MoM) is the same as above except it includes the volatile transportation items. This report is of medium importance. It is forecast to come in at -6.0 percent. The previous reading was 6.4 percent.
Goods orders, non-defense ex air (MoM). Nondefense capital goods include everything from small arms to generators, heavy-duty trucks to medical materials and supplies. It is referred to as having low importance and is forecast at 0.3 percent. The previous reading was -0.1 percent.
Not Painful…Tradeable! To trade this news event you can use an Iron Condor strategy using Nadex EUR/USD Spreads. Enter as early as 8:00 AM ET with an expiration of 10:00 AM ET for a minimum profit of $35.
Set up the Iron Condor by selling the upper spread and buying the lower spread. The upper spread floor and the lower spread ceiling should come together and be where the current underlying market is trading when placing the trade.
With this strategy, the market can go up or down. Once the market pulls back, this is the opportunity for profit. The closer it comes back to center between your spreads at expiration, the greater the profit.
Be sure to check out all the news events on the news calendar at www.apexinvesting.com.