US New Home Sales Stimulates A Trade Opportunity

US New Home Sales definitely triggers economic stimulation. The sale of a new house has people making loans, doing upgrades, and buying furnishings and services. This all gets the economy hopping. The US New Home Sales numbers will be released at 10:00 AM ET, Wednesday, November 25, 2015. For this trade recommendation, it doesn’t matter what the numbers are or which direction the market goes, the Iron Condor strategy is a great neutral strategy.

For this strategy setup and news trade, you want to sell an upper Nadex EUR/USD spread and buy a lower Nadex EUR/USD spread. Spreads are a range of a market and have a ceiling and a floor, which you can’t win or lose past, depending on the direction you traded the spread. For this strategy you want the ceiling of your bought spread to match the floor of your sold spread and be where the market is trading. In addition, you want the reward potential to be $30 combined for the trade, or around $15 for each spread. To find the spreads quickly and easily at a glance, open the spread scanner, which is accessed from the www.apexinvesting.com website. Below is an example of what the spread scanner looks like displaying Nadex EUR/USD spreads.

To view image click HERE
EUR_USD

You can enter as early as 9:00 AM ET for 11:00 AM ET expirations. For this trade, the market can move 60 pips up or 60 pips down and your trade will still have a 1:1 risk reward ratio. Your break even point is when the market moves 30 pips up or down depending on your exact entries, of course. Based on previous releases and market reaction however, the market tends to make a move and then pulls back, basically, not much of a move. This is ideal for the Iron Condor strategy. For max profit the trade would expire with the market being where it was when you entered.

To learn more about news trades, and for a full calendar of events and strategies to trade them, go to www.apexinvesting.com. Nadex can be traded from 49 different countries and is a CFTC regulated exchange located in US.