10:00am (NY Time) US New Home Sales Forecast 353K Previous 342K
ACTION: (USD/JPY) BUY 423K SELL 273K
New Home Sales is expected at 423K, if the number is lower, it would be bad for USD, so we will look to SELL USD/JPY; if the number is higher, it would be good for USD, we could see a rally in USD and BUY USD/JPY.
Definition:
Measures the annualized number of new residential buildings that were sold during the previous month. A rising trend has a positive effect on the nation’s currency because the housing market is a leading gauge for the overall economy. A high level of housing activity signals that the construction industry is healthy and that consumers have the capital to make large investments. More importantly, new housing activity creates an economic ripple effect as home owners buy goods such as appliances and furniture for their homes, and builders buy raw materials and hire more workers to meet demand.
Analysis:
Since US Housing data has a more profound effect for the world economy, speculators pay particular attention to this release. In the event of a better number, risk appetite sentiment could take over the market and we could actually see USD under pressure; if the opposite is true, then in the event of a worse number, USD could rise due to high demand for US treasuries. Therefore, as a trader we need to know these 2 driving sentiments and follow the market by waiting for the market to take a side first… watch me do it LIVE in my video which I’ll post later.
UPDATE: New Home Sales came out at 384K, which is 32K better than expected however, it didn’t hit our trigger for a trade, so I decided that it is too uncertain to jump into the market as I explain the reasons and some basics on news trading. If you are new at news trading, you need to watch this video and get some basic ideas. The results turn out that I was right on target for not taking a trade as the market went totally against the release in a whipsaw manner.
[flv:http://www.newsprofiteer.com/072709-usnewhomes/072709-usnewhomes.mp4 480 360]
Related posts:
- Forex News Trading US New Home Sales m/m 05/24/11
- US New Home Sales m/m 11/25/09
- US New Home Sales 01/27/10
- Forex News Trading US New Home Sales 02/24/11
- Forex News Trading US New Home Sales m/m 03/23/11
- Forex News Trading US New Home Sales m/m 04/25/11
- Forex News Trading US New Home Sales 01/26/11
- US New Home Sales Forex Trading Plan 10/27/10
- US New Home Sales 02/24/2010
- Forex Analysis For US New Home Sales 09/26/11
{ 33 comments… read them below or add one }
hello
thank u for ur informative vedios. could u pls tell me about the news wesite that u use in your vedios?
thank u in advance
Amir
great vids Henry! This is probably my favorite thus far, your trading strategy in knowing a lot of the ins and outs of the market such as the three sessions rule as mentioned are very powerful in becoming a successful trader
thanks and keep it up!
Henry: Good video on the housing numbers, I have never heard of the “3 session rule” and would like for you to go into more details on this view of yours. Thank you for the videos, always something new to digest.
3 Sessions-Rule is a private phrase that we came up with, it is more applicable during NY session since we’ve had 2 sessions already to observe market movement; usually if we get 2 sessions of same direction, the 3rd session will probably be going the opposite direction or just consolidation. When I tested this idea a couple of years ago, about as high as 90% of the days this theory is valid, and taking a closer look at the days that it didn’t work out, I found out that mostly those days were driven by heavy sentiment or high impact news…
Thanks. First time I watched after a day, but I felt more satisfied by your discipline of not trading on this signal and got some appreciation of forex.
Thanks for the informative training on the homesales data release. Your video comments is definetly giving me better understanding on the actual data being released and its repurcussions to market .
its excellent coaching . Thanks again.
rdgs,
Muru
Thanks Henry, this video is full of valuable information, I have to watch it several times, it is great!
I got the message.
Thanks
Tatiana
Please man, you are great! Am eager and interested to acquire all knowledge of yours, in forex trading. Looking forward on you.
Thanks.
Hi Henry.
Your Video’s are just great–I am hoping you will do an actual Webnair some time of a Trade–Also I did buy your e-book. Thanks for sending me the info that is so hard to get.
Thanks again
Don K
Your analysis is always on point. I appreciate that.
It is definitely helping to grow the account.
Based upon the news and the price action, I also chose not to enter the market yesterday. You mentioned a certain trigger level. What was it for you yesterday and how did you arrive at it?
Also, what source do you use for your audio news feed?
Looking forward to continued trading and discussion with you and the group.
Thanks!
WHERE DO YOU GET THE REAL TIME ANNOUNCEMENTS OF ALL THE DIFFERENT CURRENCIES.
Hi Henry,
Thanks for the side lessons on things like market cycle. It would seem common knowledge to some but most don’t realize the importance of knowing things like that. Are you still going to do a 6 week class? I’m in North Miami and would like to get as much of your services as possible to help my retail trading.
Much Thanks,
Solomon P
P.S. Wish your video blogs where live!
Hey Henry.
Great vid as always. I know it’s not really in line with your newstrading style, but how about the strategy of going short EURUSD once it became clear that the (reasonably) good number was not going to take the market higher? Pretty easy to place a low-risk stop. That’s what i did – also on DOW – and it worked fine. But am just wondering if you’ve got some concrete backtested results which back up the idea of if the mkt doesn’t react to news the way one might expect then there’s a high probability it will go the other way?
Regards.
Liked your psychological analysis today. It gave me insight as to why some of the things happen the way they do. The three session rule is one I look to incorperate in my decision process. Thank you.
Hello Henry,
You’re doing a great job,thanks for your consistency.
I want to know when your room will be open.
Looking forward to hearing from you,bye.
Hello Henry i cant see to be able to watch your video and have tried a few times now, i was wondering if you upload it to youtube or anywhere else i may be able to watch it.
thank for your support on the Forex world God will surely bless you more than your expectation becouse you give clear explanations thank you for that now i want to talk about your daily limit levels on newsprofiteer.com is it going to tell me when to buy,sell or exit trade i mean entry and exit point please i need your respond as soon as possible Thanks
Remain bless
segjam forexnoble
hi henry i like your no hype clear explanations thank you for that..marc
why no trade in CBI
Good advice Henry; if the market doesn’t reach the triggers, don’t trade. It makes total sense to me. This was a good example of stay out of it, for our safety trade.
Dear Henry,
I love you so much, I believe you are the only one who is teaching us the secretes of Forex and the most amazing thing is free of charge…..
I lost $2000 in last 4 months and now I stopped the live trading.
Now my all concentration on you and when I fee that I can trade better then I will put more funds to my live account.
Thank you very much Henry I really appreciated.
God Bless you.
Sincerely,
Imran.
Except that your response to my yesterday’s comment is yet to be received.
thanks for updating me on news trading have learnt a lot from your blog
Henry,
Excellent video and explanation. Keep up the good work.
Cheers
Hello HENRY:
I heard you making the video the other day at three or four o’clock in the morning, when do you sleep?
You make great videos,thanks
Dear Henry,
I completely disagree about not having taken a position on the housing figure. If there s good news there usually is some spike. I dols into that spike in gbp/yen at 157,35. This morning I could take them back 100 points lower. The pro market always marks up on “good news” so its a sell. The other way around count as well. I don’t understand something. Do you really believe the figures that are currently printed out of USA and UK?
EVERY eco release from those countries come out moderately positive. All to stimulate this stock market. Trading news is fine but as a contrarian only as the numbers are overly polished to deceive the markets and the population.
Just my 2 cents
Really good video Henry. When are you going to start your own trade room during news time?!?!? The news is so tricky. It is a blessing to have you show us what is going on in traders minds as the announcement unfolds. Especialy how the big traders are using the information to trade. Thanks again.
Hello.
Thanks 4 showing some videos on Taking a good trade. I really needed this cause i’ve been taking bad entries in trading forex news, not until now. Thanks once again. God bless you
Hello Henry.
I love all you teach. Is it possible to get the indicators you use with the metatrader4. How can i have an indicator that show me a complete season?, like yours. Thanks
I will make them available as soon as I finish my online webinar series.
Jakob:
It will be offered hopefully in 2 weeks. It is in a beta phase, but I’ll be sending out limited invites, so keep an eye on this blog.
Henry,
I have seen in some of the videos, that you write your trade in some chatroom. Is this a service which is up and running, or some beta testing? I would love to try it out, if this is possible.