Look For A Trade When The Canadian PMI Comes Out

The Richard Ivey School of Business will release results on the Purchasing Managers’ Index, a level of diffusion index based from surveying purchasing managers. This report is released monthly and if it is above 50, it indicates industry expansion. For the last three reports running, it has been between 45 and 48. This survey includes 175 purchasing managers selected geographically and by sector of activity to reflect the economy as a whole. Managers are asked to rate the level of various business conditions such as employment, production, new orders, inventories, etc. Since businesses respond quickly to the current economy, it is a leading indicator for economic health.

Wednesday, May 6, at 10:00 AM ET

The report comes out Wednesday, May 6, 2015, at 10:00 AM ET. To trade the event it is recommended to use Nadex USD/CAD Spreads and set up an Iron Condor strategy which has a low risk. You can enter the trade as early as 10:00 AM ET for a 12:00 PM ET expiration. The Iron Condor strategy has two spreads. The lower spread is bought with the ceiling being where the then current underlying market is trading, and the second spread is the upper spread which is sold. The sold spread should have the floor being where the then current underlying is trading. For this trade you want your Iron Condor to have a profit potential of $25 or more.

Can Move Up To 50 Pips For A 1:1 Risk Reward Ratio

For news trades you can leave your trades on until expiration giving the trade plenty of time to profit. Usually after the news trades the markets make their move and then pull back. If the market pulls back to the center of the Iron Condor, that is where the max profit is made. For a 1:1 max risk reward ratio the market can move as much as 50 pips in one direction and remain. Apex Investing does analysis on the markets after various news events and tracks results to establish high probability strategies for future trades. For a complete news calendar see www.apexinvesting.com.