Trade Tip On Release Of Durable Goods With And Without Transportation Items

Core Durable Goods include computers, appliances, the kitchen sink, basically any hard product with more than a three-year life expectancy. Then, when you add trains, planes and automobiles, you have all Durable Goods.

On June 23, 2015, at 8:30 AM, The Census Bureau will release the percentage change in total value of new purchase orders released for both:

• Core Durable Goods
• Durable Goods

The reason transportation items are not included in the Core Durable Goods number, is due to the orders for transportation items distorting the underlying trend. A rising trend of purchase orders indicates busy manufacturers increasing work to fill their orders.

With these two reports coming out on Tuesday, it is anticipated the EUR/USD will react to them and then pull back. This kind of move in the market is an opportunity to use the Iron Condor strategy trading Nadex spreads.

Nadex, short for North American Derivatives Exchange, is a United States Exchange regulated by the CFTC. Nadex offers binary and spread derivatives for trade on various underlying markets including the EUR/USD. Although it is a US Exchange, Nadex can be traded from 49 different countries now!

If you haven’t heard of, or don’t know much about Nadex spreads, one benefit about them is defined up front risk. Your total risk and margin are known before placing the trade, and that amount is put up when you enter the trade. On exit of the trade, you receive your profits and/or the remaining collateral that was put down upon entry.

For this trade to set up an Iron Condor you enter two spreads. You can enter as early as 8:00 AM ET for 10:00 AM ET expirations. You want to buy a lower Nadex EUR/USD spread and sell an upper EUR/USD spread. A spread has a floor and a ceiling.

You will need the ceiling of the bought spread to meet the floor of the sold spread and be where the then current underlying EUR/USD market is trading. The spreads should have a combined profit potential of $30 or more. The trick is to find both spreads that meet your criteria and enter them one right after the other.

This is a recommended strategy based on 12 - 24 months of reports and market reaction. However, as is always the case with trading, nothing is guaranteed and if the right setup is not possible then don’t force the trade.

For a profit potential of $30, plan to buy the lower EUR/USD spread for around $15 and sell the upper EUR/USD spread for around $15, together that will be around $30. After the market reacts from the news report, the closer to the center of your Iron Condor the market comes, the greater your profit. For a great example of an Iron Condor trade, see The Awesomeness Of An Iron Condor.

For a full news calendar of events to trade with detail and suggested strategies, visit www.apexinvesting.com.