Market Overview

Various US Reports Including Retail Sales And Prices Offer Tuesday Trading Opportunity

Share:
Various US Reports Including Retail Sales And Prices Offer Tuesday Trading Opportunity

News events are great for stirring up the markets creating volatility.

When the event is scheduled, that is even better since you can plan ahead for the trade. Apex Investing has a news team that tracks scheduled events, looks for consistent market reaction and then determines a strategy for a high probability trade.

The following reports are to be released on Tuesday, July 14, at 8:30 AM ET:

  • Core Retail Sales
  • Retail Sales
  • Import Prices

Retail Sales reports two ways actually. The first is Core Retail Sales which is the change in the total value of sales at a retail level but excludes automobiles. The reason being that auto sales is very volatile and accounts for 20% of the retail sales.

Hence, there are two reports: the Core Retail excluding auto sales and the Retail Sales including auto sales. This is the widest look at consumer spending and is a primary measure for consumer spending.

Import Prices is an indicator of pricing going up or down for imported goods and services. This is the earliest report with a look into inflation. All three reports are released monthly.

Use Nadex Spreads, Derivatives Of The Underlying Markets

To trade the release of these reports it is recommended to use Nadex Spreads derived from underlying markets, specifically Nadex EUR/USD Spreads. When looking at a chart you will follow the underlying EUR/USD for this trade.

Entering as early as 8:00 AM for 10:00 AM expirations, you want to trade two spreads with market trading right between them. Buy the lower spread with the ceiling where the underlying market is trading at that time and sell the upper spread with its floor where the underlying market is trading at that time.

This strategy setup is known as an Iron Condor. You want a profit potential of $30 or more for this trade. Therefore, you need to find the spreads at the right price to accomplish your profit potential goal or don’t take the trade.

Market Tends To Move And Then Pull Back

It’s been found that the EUR/USD market tends to react after the release of the reports and then pulls back rather than making a long trending move and then maintaining at that point. With an Iron Condor strategy, you actually want the market to pull back and the closer it pulls back to the center of your spreads, the greater your profit potential with the greatest profit being right between them. The trade can be left on until expiration for the trade to have time to play out, if necessary.

Nadex spreads can be traded from 49 different countries. To learn more about how to trade the news and for a full calendar see www.apexinvesting.com. For more on the Iron Condor strategy see The Awesomeness Of An Iron Condor.

The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

Posted-In: apexinvesting binary binary charts binary optionsBinary Options Previews Options Trading Ideas Best of Benzinga

 

Related Articles

Book A Demo
Learn How You Can Succeed In The Market With Benzinga Pro

Fastest Market News

Real-Time News Alerts

Customizable News Filters

Book A Demo

Benzinga's Top Initiations

Stifel Upgrades Ingersoll-Rand To Buy, Sees 18% Upside