Trading Nadex Into The News: High Level of Importance Releases November 20, 2014

A news report with a high level of importance to your trading day will be released on Thursday, November 20, 2014, at 10:00 AM. This is the Philadelphia Federal Reserve Manufacturing Index.

That is a pretty long name for an index that rates the relative level of general business conditions in Philadelphia. So why does it merit a high level of importance? It helps “formulate and implement monetary policy, supervise banks and bank and savings and loan holding companies, and provides financial services to depository institutions and the federal government. It is one of 12 regional Reserve Banks that make up the Federal Reserve System.” (www.philadelphia.org)

If the report being released on Thursday has a level above zero, that indicates improving conditions. If it is below zero, that indicates worsening conditions. This data is compiled from a survey of about 250 manufacturers in the Philadelphia Federal Reserve District which serves eastern Pennsylvania, southern New Jersey and Delaware.

The previous reading was 20.7. If the reading is higher than expected, that would looked at as positive or bullish for the USD. If it is lower than expected, that is negative or bearish for the USD.

But wait! There’s more! Also of high importance and being released at the same time is the Existing Home Sales report. This helps to gauge the strength of the US housing market and is a key indicator in overall economic strength. The previous reading on this report was 5.17 Million. A higher than expected reading would signify positive or bullish for the USD side of your trade while lower would be the opposite.

The recommended trade for these news items is an Iron Condor using Nadex Spreads. You would enter as early as 9:00 AM on the EUR/USD looking for a 11:00 AM expiration. The minimum profit you want to get is $25. Remember that when doing an Iron Condor, you buy the lower spread and sell the upper spread. The ceiling of the lower spread must be equal to the floor of the upper spread.

If you would like to learn other ways to trade the news, 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 chat rooms, take advantage of trade signal services, have key indicators and access the Apex Forum. The forum content is updated daily and includes over 9000 members. In a supportive learning community of seasoned as well as up and coming traders, traders of all levels learn how to trade Nadex binaries and spreads in depth, as well as futures, forex, stock and options, and gain an edge for successful trading overall.