1 Way To Trade Existing Home Sales Numbers
Like new home sales, US Existing Home Sales is also an important economic indicator. Even if the house isn’t being built, the sale of any home is stimulating to the economy. Mortgages are taken out and sold, upgrades often are done, furniture is bought and moving companies are employed.
The annualized number for Existing Home Sales last report came in higher at 5.47M than what was even forecast. However, this time its forecast to be down a bit around 5.37M. Fortunately, for this trade tip and set up it doesn’t matter if it’s up or down.
The news is released Monday, March 21, 2016, at 10:00 AM ET. Therefore, one way to enter the trade is using Nadex spreads at 9:00 AM ET for 11:00 AM ET expirations. There are expirations due to spreads being a day trader option. A spread has a floor and a ceiling, which delineates the range of the market you are trading.
For this setup, there is a bought Nadex EUR/USD spread with the floor below the market and the ceiling being where the market is trading at the time. It has a $15 or more profit potential. One can also sell a Nadex EUR/USD spread with the ceiling above the market and the floor being where the market is trading at the time. It also has a $15 or more profit potential.
This strategy was chosen because the market tends to make a move and then pull back, based on market analysis done on previous releases; it makes sense to place limit take profit orders because the market can stay anywhere in between your breakeven points, 30 pips up or down.
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