Top Ten International Economic Indicators

[Soultrader 12]

Listed in order of importance:

 

1. German Industrial Production

2. German IFO Business Survey

3. German Consumer Price Index

4. Japan Tankan Survey

5. Japan Industrial Production

6. France Monthly Business Survey (INSEE)

7. Eurozone/Global Purchasing Managers Index

8. OECD Composite Leading Indicators (CLI)

9. China Industrial Production

10. Brazil Industrial Production

 

Further description is listed below.

 

Source: The Secrets of Economic Indicators by Bernard Baumohl

[Soultrader 12]

Listed below is a quick reference to the following indicators. Please visit their official website to learn more about the following reports.

 

1. German Industrial Production

 

Release time: 11am Continental Time; numbers come out every second week of the month. Data refers to the previous two months of economical activity.

 

Website: Statistisches Bundesamt Deutschland

 

Why is it important? Germany is the world's second largest exporter in the world. The US is the second largest consumer of German goods while Germany is the thirds largetst consumer of US goods. Germany is a dominant player in Europ and worldwide.

 

2. German IFO Business Survey

 

Release time: 10am Continental Time; report comes out at the 4th week of every month.

 

Website: CESifo Group Munich

 

Why is it important? German top business leaders get together to discuss the current and future economical state. A good indicator to assess the German and European economy. The report is similar to the Industrial Production indicator, however, the data is released the same month the survey is taken making it a leading indicator.

 

3. German Consumer Price Index

 

Release time: 7am Continental Time, report comes out usually at the 25th of every month

 

Website: www.destatic.de/e_home.html

 

Why is it important? The CPI report affects how the European Central Bank will set interest rates for 12 countries using the euro currency. If German inflation is on the rise, the ECB will likely raise interest rates and vice versa. This can have a global effect.

 

4. Japan Tankan Survey

 

Release time: 8:50am Tokyo Time; released at the beginning of April, July, October, and in mid-Decemeber.

 

Website: www.boc.or.jp/en/index.htm

 

Why is it important? The world's second largest economy next to the US. The report has gained credibility as it is produced by the Bank of Japan. This report offers extensive information on the current business condition of Japan ranging from small companies to large corporations.

 

5. Japan Industrial Production

Release time: 8:50am Tokyo Time; released in the final week of the next month. A revised official edition is released 2-3 weeks later.

 

Website: www.meti.go.jo/english

 

Why is it important? Japan is the biggest exporter of investment capital. The yen is also considered one of the most important currencies in line with the dollar and euro. Report consists data of industrial production, shipments, inventories and inventory ratios, and a production forecast.

 

6. France Monthly Business Survey (INSEE)

 

Release time: 8:45am Continental time; released at the end of every month

 

Website: INSEE - National Institute for Statistics and Economic Studies - France

 

Why is it important? Second largest economy in the Eurozone and 4th biggest in the world. Report answer key economical questions: output, demand, inventory of finished goods, change in producer prices, and outlook for French industry as a whole. This offers a economical outlook of France as a whole.

 

7. Eurozone/Global Purchasing Managers Index

 

Release time: Eurozone PMI at 9am London Time. Global PMI at 11am New York Time. Reports are released the first business day of every month.

 

Website: NTCResearch

 

8. OECD Composite Leading Indicators (CLI)

 

Release time: 12:00pm Continental Time; released every first Friday

 

Website: www.oecd.org

 

9. China Industrial Production

 

Release time: 3:30pm - 4:30pm China time, released at the end of the month

 

Website: www.stats.gov.english

 

10. Brazil Industrial Production

 

Release time: 9:30am local time; 40 days after survey month ends.

 

Website: IBGE - Instituto Brasileiro de Geografia e Estatística

 

 

Source: The Secrets of Economic Indicators by Bernard Baumohl

[mandiuang 10]

thanks, very useful. i heard about some succesful news trader out there, like tom yeomans. is there any body here follow his methode?

[torero 10]

only a very small minority, usually market makers and specialists and floor traders. So very very small minority.

 

The best way I know is wait for the news to come out, then let the volume settle down a bit, then watch for higher high and higher low (to go long) or lower high and lower low (going short) from there on. You pretty much have an idea where it'll go next. Of course you have to keep support and resistance in mind. Fed news is one example I trade it. I trade emini Russell so not talking about stocks here. Stocks might require a different style.

[Soultrader 12]

Hey Torero,

 

Since you mentioned fed days... I decided to start a thread on trading methodologies that I have been working on lately. Would love to hear your thoughts on it.

 

http://www.traderslaboratory.com/forums/f38/trading-fed-news-methodologies-690.html#post2080

[feb2865 10]

Torero

 

This is a question a little off context here but why do you trade mini russell?? I notice that it moves side-by-side literally with YM. You're the second trader I heard who trades the mini russell and I am curious. Actually next time we're on the chatroom I would like to try it and see what happens.

 

Thanks in advance

 

Raul

[torero 10]

IMO, it trends longer than others, also the payoff is higher. An average day is 12-15 points, so a few points here and there can add up. I go for 2-3 pts, it's not alot from the average range, but it's $100 per point. Not sure if YM has the same payoff for the same trend. I notice on days the markets shows itself flat end of day, say open to close is 1-2 pts, yet the Russell has had a full day with 10-15 points range. Volatility is the answer I reckon.

[feb2865 10]

That's interesting

 

I'll be checking on that Monday morning

 

YM is $5.00 per point and ES is $12.50 per tick

 

I have a chart setup on close lines using YM and Mini russell very much like moving averages and I notice their moves are quite similar sometimes

 

Have you tried another one besides ER?

 

Thanks

 

Raul

[torero 10]

Used to trade NQ, ES, and a bit of YM. I settled on the ER2 and left the rest behind. ER2 just seem to flow better than the others. I can stay in a trend better with my method than the others. One other advantage is that the emini Russ doesn't obey the Russ index like ES and NQ to their respective indices since these are so major reference points for the financial markets. So if you see the $COMPX near resistance and NQ has some ways to go, gotta keep an eye on $COMPX to cues. Russ index doesn't weigh that much on the emini Russ, it seems to have its own mind so I don't need to eye on other charts. Just my opinion and personality though.

 

If you find YM and ER2 similar and you're doing well with YM, why not go with a higher payoff.

[feb2865 10]

How about Tick and Trin? do they put any weigth on mini russell?

[torero 10]

Some traders use them. I don't use them myself but it wouldn't be bad to see the market breadth to confirm the breakout, etc.

 

Just starting to read John Carter's book and he mentions that he uses ER2 as a leading indicator to trade ES, YM, and NQ. I didn't know that myself but worth verifying if it's BS or not. I know many ER2 traders keep an eye on ES to confirm ER2 movements. I don't do that either. I just use ER2 prices and volume. I may start to incorporate the TRIN, but have to observe it first to see if reinforces my method or muck it up.

[Soultrader 12]

Some traders use them. I don't use them myself but it wouldn't be bad to see the market breadth to confirm the breakout, etc.

 

Just starting to read John Carter's book and he mentions that he uses ER2 as a leading indicator to trade ES, YM, and NQ. I didn't know that myself but worth verifying if it's BS or not. I know many ER2 traders keep an eye on ES to confirm ER2 movements. I don't do that either. I just use ER2 prices and volume. I may start to incorporate the TRIN, but have to observe it first to see if reinforces my method or muck it up.

 

Very interesting.... on Friday, the ER2 seemed to be leading the YM. I noticed the moves are fast on the ER2. The YM feels like a 100 ton bull being dragged by a few men.

 

I'm going to be paying attention to the ER2 more carefully.. will post any insights observations I may found.

[ezduzzit 10]

I think Torero's points about the e-mini Russell are absolutely spot on. I too used to trade the YM but gave it up for the ER2.

 

As to Carter's assertions of the ER2 leading the YM... I have not found that to be the case often enough to bet my money on it but further observation should prove if that has any useful merit. I will be interested to hear anyone else's observations in that regard as time progresses.

 

Happy Trading

[torero 10]

I remember I used to daytrade stocks. Looking back, drove me nuts having to open so many charts, juggling them all at once with all the indices on top of that, I had 3-4 monitors, all the flashing signals all over the place with your heartbeat pumping 140/min. What was I thinking? Stocks are better for swing, not really for daytrade, at least for my simple-minded, untalented, un-multi-tasked brain of mine.

 

When I finally moved to eminis, especially ER2, things got a little calmer, relaxed, sometimes fun and sometimes boring. Don't have to deal with news spikes, which stock is correlated with which, now it's just plain vanilla (only 3 charts max of same symbol). I'm not as emotional anymore. Now, I just wait and snipe. No more charting flipping. Signs of aging I think.

[ezduzzit 10]

Oh my gosh Torero.. are those REALLY signs of aging? Dear me! I certainly hope not. You realize of course those white whiskers of mine are nothing more than blonde hairs, right?

 

Actually, I am very much like you in regard to daytrading versus swing trading, etc. I do not subscribe to the idea that it is smart to daytrade either stocks or the Forex. I also think you can rest assured that you were simply being eminently sensible when you switched to no more than three screens of data for the one index and little else as I have seldom met anyone who can effectively monitor more than and still trade on a consistently profitable basis. Sometimes less is more. I must also say that I do quite enjoy your posts. Keep them coming.

 

Happy Trading

[Guest FLX]

All the major US markets put weight on the russell!

[torero 10]

Oh my gosh Torero.. are those REALLY signs of aging? Dear me! I certainly hope not. You realize of course those white whiskers of mine are nothing more than blonde hairs, right?

 

Actually, I am very much like you in regard to daytrading versus swing trading, etc. I do not subscribe to the idea that it is smart to daytrade either stocks or the Forex. I also think you can rest assured that you were simply being eminently sensible when you switched to no more than three screens of data for the one index and little else as I have seldom met anyone who can effectively monitor more than and still trade on a consistently profitable basis. Sometimes less is more. I must also say that I do quite enjoy your posts. Keep them coming.

 

Happy Trading

 

Thanks. Glad we see eye to eye at times, age or not LOL.