Tip from the Geek – Top 5 Binary Options Trading Signals 06/02-09/2014
Rally On! The Geek is Looking Forward for June
The S&P 500 made a very bullish move last week and into the close of Friday trading. The index made several new all time highs last week but it was the mild rally into the close on Friday that was really bullish. This move up in the last 10 minutes or so of trading is a sign that futures and speculative traders did not want to go into the weekend without a position…a sign they believe Monday morning, or at least the next week, is going to be a good one. Why the bullishness? Economic data is still trending up, jobs data is still improving, China and Europe are not as bad as some feared and the Ukraine tensions are alleviating or alleviated. But that was last week. What is ahead for us this week?
To start things off flash PMI data from China, released over the weekend, shows that manufacturing in the region is at a five month high. This is above expectations and indicative of the global Q2 rebound I think we are all expecting. Monday trading in the US was dominated by ISM and Construction Spending data, data that echoes the trends of the last several months. Later on this week is when things will really start to heat up. Tuesday the Fed releases their beige book, Wednesday the ECB releases their policy decision as well as the first bit of what I call the employment bundle. Wednesday is the ADP employment survey, Thursday the Challenger Survey and jobless claims then Friday is the all important NFP and US Unemployment data. In between all this are numerous smaller reports from the US and around the world.
1. Mr. 2000
SPX
Call/Put = Call
Entry = Below 1920
Expiry = One Week
My Trading Advice
The SPX is rallying to new highs with SPX 2000 in sight. At this time 2000 is only about 80 points away, a mere 4% rally that the index could easily make in only a few days time. The index has been making new highs for over a week now, since breaking out 2 Friday’s ago. This fact alone is enough for a short term bull to want to play a call but the rest of the evidence leads me to believe the rally is more than just a technical follow through on a weak break out. Aside from the demographic and economic evidence that support a long term secular bull market there is ample technical evidence as well.
The long term trend is up. The SPX has been moving up along a 2 year trend line and is in the early stages of a bounce/break to new highs. Previous bounces from this trend line have had targets on average in the 150-200 point range. This leaves about 100 points left from the start of the bounce. The index is at a new high and opening at a new high on Monday, a bullish sign. The indicators are also bullish. MACD momentum is bullish and on the rise, stochastic is moving higher and crossing into the upper signal zone, a sign of strength. There may be some sideways trading or small correction this week but the data and the trend will take the index higher. I am trading a call with a target entry below 1920 and one week until expiry.
2. Almost Time To Buy Gold
Gold
Call/Put = Put
Entry = Above $1250
Expiry = One Week
My Trading Advice
Gold, what to say about gold. We may be nearing the bottom in gold but we’re not quite there yet. The price of the metal has been dropping fast over the last week I think on lack of interest more than anything else. There is no reason to buy gold at all now that the flight to safety is going away and long term economics and dollar strength are on the rise. The bottom could be around $1200 but I’m not calling that, just putting it out there as a target. Until then I am trading a put on gold with one week of expiry and a target entry above $1250.
3. BOJ Meets Next Week
USD/JPY
Call/Put = Call
Entry = Below 102
Expiry = One Week
My Trading Advice
The BOJ meets next week and is not widely expected to add any new stimulus or change its policy/stance in any way. Until then the yen should remain trapped within its trading range and driven by techinicals and the other central banks. This week the Fed’s Beige Book is released on Tuesday followed by the ECB meeting and FOMC policy moving data on Friday. The yen is being weakened long term by Abenomics, the dollar strengthened by economic improvement and tapering. I expect the pair to move higher in the range ahead of the meeting based on bullish indicators and underlying fundamentals. I am trading a call on the USD/JPY with a target entry below 102 and one week until expiry.
4. Oil Prices Moderate
USO
Call/Put = Call
Entry = Below $37.75
Expiry = One Week
My Trading Advice
Oil prices moderated over the weekend and into early Monday trading as investors weighed slightly stronger China data against slightly weaker EU data, expectations for US data later in the week and supply issues centered around Libya. Among the usual sub currents that are always driving oil prices. Looking at the charts oil, and the USO which is what I trade on CT, are stabilizing around short to mid term moving average and support zone. Global factors are basically in balance, if precariously, traders now await the US data starting with Tuesday afternoons Beige Book. If the Fed and the data support longer term growth and improvement to growth then oil prices could move higher. I am trading a call around the moving average with a target entry below $37.75 and one week until expiry.
5. Does A Cut Apple Taste As Sweet?
Apple
Call/Put = Put
Entry = Above $635
Expiry = Three Days (Before Friday!)
My Trading Advice
Apple has made an impressive run up on expectations, Carl Icahn/George Soros and an upcoming stock split. The split is set for Friday and that along with Friday’s candle stick leads me to want to short the stock. In binary terms that means buying a put so that is what I’m doing this week. Sellers will be in the market this week taking profits and getting ready for the split. I am trading a put with a target entry above $635 and THREE DAYS until expiry. You will want this to expire before the split to prevent any issues with expiry! Take no chances.
More Tips by the Geek – 06/02-09/2014 Trading Tips On Forum.
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That’s it for this week; Michael will be here next week with fresh trading tips. Meanwhile, we will be testing Michael’s tips to see what kind of an “expert” he really is. All trading assets and expiry times featured in Michael’s trading tips are based on CommuniTraders Binary Options Trading Platform.
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