Trading Ordering Trends: Durable Goods


By Darrell Martin

Each month, the United States Census releases reports telling about the changes in the total value of ordering trends. These reports reflect what is occurring in the United States with Core Durable Goods and Durable Goods.

What is the difference? Core Durable Goods are long lasting things like computers, appliances, furniture and sports equipment. Basically, anything that will last longer than three years. Durable Goods are the bigger things that are also more volatile like automobiles, aircraft and other transportation items.

Census measures the change in the total value of the new orders and then releases a report. This month, the report will be on Thursday, April 26, at 8:30 AM ET. Core Durable Goods, previously at 1.0 percent is forecast for 0.5 percent. Last month, Durable Goods was 3.0 percent, with this month’s forecast being 1.6 percent.

However, if the readings come in higher than expected for either report, it should be regarded as positive or bullish for the USD. If it is lower, then take it as negative or bearish for the USD.

Since these are news reports, it will likely cause movement in the markets. To trade this news event, use an Iron Condor strategy utilizing Nadex EUR/USD Spreads. Enter as early as 8:00 AM ET with an expiration of 10:00 AM ET looking 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 the two spreads at expiration, the greater the profit.

Be sure to check out all the news events on the news calendar at