We have a few economic report/event tonight namely the:
- New Home Sales at 10PM
- Fed Chairman Bernanke speaking
- FOMC Member Lockhart Speaks
What traders should watch out for if you're trading the US index futures/stocks:
Expect price action to be slightly choppy and be lighter than usual in view of a few economic reports within the same day. Careful being in a position, whether long or short as the announcement may pack a punch in either direction very quickly.
Possible Trades:
Place stop orders outside consolidation area and prepare to take quick profits as price sometime tends to pullback quickly as well.
Regards,
Tech Trader
Below is the description of the New Home Sales report as taken from ForexFactory website.
The Previous report was at 321,000 and Forecast at 326,000 new home sales.
| Measures | Annualized number of new single-family homes that were sold during the previous month; |
| Usual Effect | Actual > Forecast = Good for currency; |
| Frequency | Released monthly, about 25 days after the month |
| Next Release | Apr 24, 2012 |
| FF Notes | While this is monthly data, it's reported in an annualized format (monthly figure x12); |
| Why Traders Care | It's a leading indicator of economic health because the sale of a new home triggers a wide-reaching ripple effect. For example, furniture and appliances are purchased for the home, a mortgage is sold by the financing bank, and brokers are paid to execute the transaction; |
No comments:
Post a Comment