Trades Economy
65. Trading the News - Economic Numbers - Retail SalesMay 06, 2012
www.informedtrades.com A look at how the make up of the Retail Sales number and how this economic indicator moves the stock, futures, and forex markets. Example Release: www.census.gov Lesson on InformedTrades.com: www.informedtrades.com The retail sales number is released at 8:30 am on or around the 13th of each month, and is an estimate of the sales of goods by all retail establishments in the United States. These goods fall into the personal consumption expenditures category, which as we discussed in our lesson on GDP, makes up over 65% of the US Economy. Although the number does not include anywhere near the data that is included in GDP, since this number is released for each month (where GDP is released for each quarter) it is closely watched by the Fed and other market participants as a timelier indicator of what is happening with the consumer. In addition to the widely reported headline number, the report that is issued along with the retail sales number includes a breakdown of retail sales growth by category. With this in mind the report is not only a good indicator of overall consumer activity, but also for how different parts of the economy such as automobile, restaurant, clothing and electronics sales are fairing. If you are trading the stock of a company which sells products related to one of the categories reported in the retail sales release, then it is obviously important to understand that what happens with the growth of that category is most likely going ...
Trading the Top Five Economic IndicatorsMar 19, 2012
More Videos: www.fxcmexpo.com During normal market conditions, shifts in government policy paired with economic developments tend to drive price action in the currency market. Identifying major economic releases allows forex traders to take advantage of profitable opportunities, and helps to evaluate the medium to long-term outlook for a country's currency. At the same time, government policy plays a key role in the performance of a country's currency, and the variation in monetary policy paired with the yield differential between two economies affects the demand for a currency relative to its counterpart.
66. Trading the News - Economic Numbers - ISM ManufacturingApr 12, 2012
www.informedtrades.com The Institute for Supply Management's (ISM) Manufacturing Index. A lesson on what this indicator is and what it tells us about the manufacturing sector of the economy as well as its status as a leading indicator of overall economic conditions.
62. Trading the News - Economic Numbers - GDP Part 1May 13, 2012
www.informedtrades.com A lesson on what traders of the stock, futures, and forex markets look for when the Gross Domestic Product (GDP) Number is released. As we have learned in previous lessons there are many components of the US Economy which can affect overall economic growth and inflation expectations. Some of the major examples here are how many people are employed in the economy vs. unemployed, how much the housing market is growing in different parts of the country, and at what rate the prices for different products in the economy are seeing increases. As all of these things are so important to the economy and therefore to the markets, there are no shortage of economic reports which are released to try and help people gauge how things are going with different pieces of the economy. It is important for us as traders to understand the major reports here as even if we are trading off of technicals, understanding what is happening in the market from a fundamental standpoint can help establish a longer term bias for trading. In the short term an understanding of these numbers will also help to assess the erratic and sometimes extreme movements which can occur after economic releases. The granddaddy of all economic reports is the release of the Gross Domestic Product (GDP) number for the economy. The Gross Domestic Product for the US or any other country is the final value of all the goods and services produced in that economy. Essentially what you get after calculating ...
63. Trading the News - Economic Numbers - GDP Part 2Apr 12, 2012
www.informedtrades.com The second lesson in a series on trading and how the components which make up the Gross Domestic Product number affect the stock, futures, and forex markets. Link to this lesson on InformedTrades.com: www.informedtrades.com In addition to looking at the growth or lack thereof in the overall GDP number, traders will also look at the growth or lack there of in the different components that make up the number. As GDP represents the value of everything in an Economy you can imagine the amount of data that goes into compiling the number, much of which is published for market participants to view. By looking at the different pieces which make up GDP we can get a good picture of what is happening not only with the overall economy but with all the different components of the economy which are reported on to come up with the final number. . Now we could spend many lessons going over all the data that is in this report. The goal here however is to build a framework for understanding the major components so we as traders can understand what is going on when the market reacts to certain pieces of the report and will recognize when to dig deeper for more information on what is happening in a certain sector. The broad categories that it is important to have an understanding of are: 1. Personal Consumption Expenditures -- as over 65% of the US economy is made up of this category, what the individual consumer is doing ie the growth or lack thereof in their ...
53. A Simple Explanation of the US Economy for TradersApr 12, 2012
www.informedtrades.com An overview of the US Economy and the first two components of the economy which are natural resources and the labor force. Explanation meant for traders of the forex, futures, and stock markets. In our last lesson we gave an introduction to fundamental analysis with an introduction to the top down approach to analyzing fundamentals and the US Economy. In today's lesson we are going to expand our discussion on the US economy by looking at the different pieces which make up the economy and how each piece is relevant to us as traders of the stock, futures, and/or forex markets. The first component of any economy is its natural resources. One of the key factors that allowed the United States to grow so quickly and become one of the world powers that it is today, is that it is a land that is rich in natural resources from oil which drives our industry, to lumber to build our houses, to our large coastlines, great lakes, and rivers which provide shipping access and move goods throughout the country. Understanding what natural resources are most important to a country and understanding what affects the prices of those resources is beneficial to not only commodities traders who trade the actual commodities such as oil and gold but also to traders of the stock and forex markets. We will go into these correlations in more detail in later lessons but a short example is that the US economy relies heavily on oil, so when the price of oil goes higher this is ...
54. Simple Explanation of The US Economy For Traders Part 2Mar 18, 2012
www.informedtrades.com A lesson on the second two components of the US Economy the Private and Government Sector and how these each affect forex, futures, and stock traders. In our last lesson we began a discussion on the different components that make up the US Economy and how these relate to trading with a look at the Natural Resources and Labor Force components. In today's lesson we continue this discussion with a look at the Private Sector and Government components and how each of these relates to trading. While having lots of natural resources and a large well educated labor force to produce goods and services from those natural resources is a great thing, without a way to organize these first two components of the economy, not much would get done. This is where the small, medium, and large businesses which make up the private sector come in. In addition to organizing the labor force to produce goods and services, the private sector is also responsible for raising the capital necessary to bring all these things together which they do through private investors, loans from commercial banks, the bond market, and the equities market. While many people think that the US Economy is dominated by the large corporations, it may come as a surprise the large role that the small business play's in the US Economy. According to the US Department of State: "Of the nearly 26 million firms in the United States, most are very small—97.5 percent ... have fewer than 20 employees," the ...
Global Economics - Global Exchange: Free Trade & ProtectionMay 16, 2012
July 2006 Societies have traded for thousands of years. However, the last 35 years have seen an explosion in world trade. How has this global integration affected the world's economy and individual markets and how are the overall gains of world trade distributed?
64. Trading the News - Non Farm Payrolls (NFP's)Apr 12, 2012
www.informedtrades.com A lesson on Non Farm Payrolls and what traders need to watch for when trading and investing in the futures, forex, and stock markets. Link to the BLS NFP Data Section: www.bls.gov Link to this lesson on InformedTrades.com: www.informedtrades.com As there are so many things which can be measured in an economy, there are tons of economic releases every month, with new numbers coming out on almost a daily basis. With all this data it is easy to get overwhelmed when looking at the economic calendar and trying to determine what is important to us as traders. While the importance of different economic indicators to the markets changes depending on current economic conditions, there are approximately 10 major economic indicators that have and always will be important to the market. Most of the other data that is reported throughout the month is similar to one of these 10 indictors, so once we have an understanding of the main numbers everything else will make a lot more sense. Before getting started here it is important to understand that economic releases are designed to try and give a picture of either: 1. What has already happened in the economy based on past numbers (referred to as a lagging indicator) 2. What is anticipated going forward based on past numbers. (referred to as a leading indicator) 3. What is happening right now based on current data. (referred to as a coincident indicator) Economic indicators are designed to try and give a picture of ...
Markets Flush After Ugly Economic Data. Bear Flag May Play OutApr 21, 2012
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71.How to Interpret the Index of Leading Economic IndicatorsApr 12, 2012
www.informedtrades.com A lesson on the Conference Board's Index of leading economic indicators for active traders and investors in the stock, futures, and forex markets. This lesson on InformedTrades.com www.informedtrades.com Latest Releasewww.conference-board.org
55. The Business Cycle and Fiscal Policy - What Traders KnowMay 17, 2012
www.informedtrades.com A lesson on the business cycle and how the government uses fiscal policy to try and keep growth going and inflation in check and what this means for traders of the stock, futures, and forex markets. Fiscal policy can be defined for our purposes very simply as anything relating to government spending and taxation. Before looking at the fiscal policy role of government in trying to influence the economy, one must first have an understanding of the business cycle. For a number of reasons which are widely debated the economy goes through repeated periods of growth and contraction over time which can be broken down into the following phases. 1. A Contraction where economic activity and growth slows and can turn negative 2. Trough where the economy stops contracting and a new expansion begins 3. An Expansion or the speeding up of economic growth. 4. A Peak where the growth of the economy maxes out and begins to turn downward We could spend many months going over and debating why this is but for our purposes it is simply important to understand that, while the timing and length of each of these phases has varied widely, the above pattern repeats itself over and over again throughout history. This is important for us as traders to understand as different phases of the business cycle and changes in peoples forecasts of where the economy is in those cycles is arguably the greatest factor which effects the price level of every market. Prior to the great ...
52. Fundamental Analysis and The US EconomyMay 18, 2012
www.informedtrades.com A lesson on the basics of fundamental analysis, the top down and bottom up, and the US Economy for traders of the stock, futures, and forex markets. there are two ways that traders analyze the markets which are known as technical analysis and fundamental analysis. As I also mentioned in that lesson while most people who buy and sell over the short term focus on technical analysis and most people who buy and sell over the long term focus on fundamental analysis, in my opinion both technical traders, fundamental traders, and investors can all benefit from at least having an understanding of both types of analysis even if they prefer one or the other as their primary tool they use to make their trading decisions. While technical analysis focuses solely on the analysis of historical price action, fundamental analysis focuses on everything else including things such as the overall state of the economy, interest rates, production, earnings, and management. When analyzing a stock, currency or commodity using fundamental analysis there are two basic approaches one can use which are known as bottom up analysis and top down analysis. Bottom up analysis very simply means looking at the details such, as earnings if we are talking about a stock, first and then working one's way up to the larger picture by looking at things such as the industry of the company who's stock you are trading and then finally the overall economic picture. Top down analysis on the other ...
China vs. US: Battle of Ideologies - RT Alyona 110119Mar 02, 2012
TheAlyonaShow | January 19, 2011 In a joint press conference today, President's Obama and Hu Jintao pledged to work closer for political and economic cooperation but there were tensions in the room. Is the US really ready to accept China as a powerful economic force? Center for Economic and Policy Research's Mark Weisbrot explains the situation.
A Simple Explanation of the Economic Crisis in the USApr 07, 2012
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