Week 3

Note: All times are noted Eastern Time. These times are subject to change. Please check current listings for exact announcement times.

When it’s released: 8:30 a.m.
Why it’s important: Housing starts measure initial construction of single and multi-family residential units each month. Since the housing boom has gone bust, investors and traders currently watch Housing Starts carefully for signals of a further contraction, or for signs of budding growth and demand. In addition to home builders, industry groups affected by the housing industry include lumber, appliances, home furnishings, landscaping and mortgage lenders.

When it’s released: 10 a.m.
Why it’s important: This report represents a composite index of ten economic indicators credited for leading the economy. A few of the indicators used: new orders for consumer goods, stock prices, initial jobless claims, money supply, building permits, and the spread between the 10-year note and Federal funds rate.
The index of leading indicators is designed for its predictive value in signaling turning points of the economy. Short-term traders should know, however, that key components in this index have been reported earlier in the month. That means they lose much of their immediate predictive value.

Remember, the third Friday of every month marks options expiration. Just so, market action for the entire week preceding this Friday can become.

“Toni explains feelings in trading eloquently.” — L. Hamtez