Trade The Canadian Wholesale Trade Report Wednesday

Statistics Canada is releasing the change in sales at their wholesale level on Wednesday, March 18, at 8:30 AM ET. This information is announced monthly around 50 days after the month ends.

Since retailers normally order more from wholesalers when they expect their sales to increase, this report can be considered a leading indicator for consumer spending and therefore for the economy.

Apex Investing tracks the reaction of the markets after news events and found after looking at 24 months, that the USD/CAD moves an average of 30 pips and tends to pull back after this report.

For a move like that, it is recommended to use an Iron Condor strategy using Nadex spreads. To set it up, buy the lower spread with the ceiling where the underlying market is currently trading and sell the upper spread with the floor where the underlying market is currently trading.

You can enter your Nadex USD/CAD spreads as early as 8:00 AM ET for a 10:00 AM ET expiration. Your Iron Condor should have a profit potential of $30 or more.

You Can Trade Multiple Spreads For More Profit, Just Keep Same Number On Both Sides

This may seem like a low amount of profit. As long as you have the same number of spreads on both sides however, you can add more spreads for more potential profit. Also, Nadex has opened its market to 49 other countries.

The Market Can Move 60 Pips In One Direction For a 1:1 Risk Reward Ratio

The Iron Condor can be left on until expiration. If you bought your lower spread for $15 and sold your upper spread for $15 as well, and the market moved 15 pips up, you would profit $15 on your lower bought spread and break even on your sold upper spread, giving you a $15 total profit.

You would make the same $15 profit total, if the market moved 15 pips down and stayed there until expiration. In that scenario you profit on the upper sold spread and break even on the lower bought spread. Now say the market moves 20 - 30 pips in one direction and then pulls back to between your two spreads.

If it returns to exactly where it started, or the market never really reacts, it doesn't take off and just stays, you would profit the maximum $30. If the unlikely happened, and the market flew 60 pips in one direction and did not pull back, then that would be a 1:1 risk reward ratio or loss of $30.

You can see now the span the Iron Condor covers. For more news events and the strategies to trade them, visit www.apexinvesting.com.