Trade The Philly Fed Manufacturing Index News Coming Out Thursday
Manufacturing companies have to stay abreast of changing economic conditions in order to make fast adjustments in their businesses. Wrongly anticipating the market can mean costly mistakes in employment, inventory and supplies, just to name a few.
For these reasons, the Federal Reserve of Philadelphia surveys over 250 manufacturing companies on business conditions, then releases a level of diffusion index.
A number above 0.0 means improving conditions and below 0.0 means declining conditions. Regardless of the results of this news release, using an Iron Condor strategy with Nadex spreads is a trade can be one strategy to consider. The news is released at 8:30 AM ET, Thursday, April 21, 2016.
With an Iron Condor, one can trade two spreads. There is usually some kind of expected distance or recommended profit potential for a particular move. This news trade, based on previous market reaction, can be a $25 or more profit potential.
To set up the strategy, one can buy a Nadex EUR/USD spread with the ceiling being where the market is trading at the time, and potentially sell a Nadex EUR/USD spread with the floor being where the market is trading at the time.
One can enter the trade at 8:00 AM ET for 10:00 AM ET expiration.
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