Tip from the Geek – Top 5 Binary Options Trading Signals 06/23-30/2014
High On New Highs
The SPX, Dow and other major US indices set new all time highs last week in a continuation of this years trends. Economic data as well as a new fed policy statement helped to provide a sense of relief for the markets that was at the same time unexpected and not all that surprising. The Fed and Janet Yellen indicated that the economy was improving, that inflation was on target, that interest rates would likely rise sooner than expected and that they would stay low longer than previously indicated. This all came with a grain of salt. The Fed also said that their GDP estimated for the year was revised lower. This would normally be big negative for the market but since the first quarter keeps getting revised lower even if the second third and fourth quarters are as expected the yearly average will be down which is why the lowered outlook isn’t all that big of a deal.
This week started with some mixed market information, something we haven’t seen for a while (that was sarcasm FYI). In China Flash PMI readings were better than expected and above the expansionary 50 level for the first time in months. Chinese PMI was reported on a flash basis at 50.8 versus last months 49.4 and the expected 49.7. In the EU flash readings were not as good. France continues to contract and posted another decline in PMI. Germany is still positive but expansion is losing momentum. German PMI was reported at 54.2, down from last months 55.6 and the second month of declines. Germany is still advancing, it’s just not advancing as fast as before but this could change is the China data leads to more expansion in the current and future months.
1. S&P 500 Marching To New Highs
SPX
Call/Put = Call
Entry = Below 1955
Expiry = Week
My Trading Advice
We may be on the brink of a summer rally but this week will be a real hurdle. According to the Traders Almanac this week is usually a down week due to the Triple Witching Expiration last Friday. On the political front the Iraqi insurgency is on the forefront and could lead to who-knows-what for the market. For now it seems to be something to take note of but not a market shaker. Housing data is on tap for the first half of the week with new home starts and the Case-Shiller 20 city index. Later in the week employment data, durable goods and the final revision for first quarter GDP will be a real mover. Expectations are for GDP to be lowered from the last revision.
On a technical basis the SPX is still looking pretty bullish therefore I don’t think I can make a bear trade on the expectation of having a down week. What I can do is wait and see if I can get a better entry than last weeks closing prices. Momentum is bullish and rising and stochastic is in the early stages of trend following signal pattern. The long term trends are up and I am still a believer of the trend and the current economic rebound. I am trading a call on the SPX this week with a target entry below 1955 and one week until expiry.
2. Oil Bubbles Heating Up
USO
Call/Put = Call
Entry = Below $39.50
Expiry = 3 Days
My Trading Advice
Oil prices are still bubbling at or near longer term highs. The Iraqi uprising has not yet had a real impacted on supply but the possibility remains which accounts for most of the current premium. Adding to the higher prices are improving economics which support the current 2nd quarter bounce. I am trading a call on the USO this week with a target entry below $39.50. I am keeping my expiry short at three days so it closes this week.
3. Gold Plated Ego
Gold
Call/Put = Put
Entry = above $1315
Expiry = One Week
My Trading Advice
Gold is trading back near the $1315 levels after a massive short covering rally last week. The new fed stance on interest rates caused traders to flee the market and have now put gold back into a position that too me seems like a good one to get bearish again. Gold may have hit bottom in recent times but at the current levels is far above that level now with longer term fundamentals pointing down for this commodity. I am trading a put with a target entry above $1315 with one week until expiry.
4. EU Fumble Means Entry For Bulls
DAX
Call/Put = Call
Entry = Below 9950
Expiry = One Week
My Trading Advice
The EU flash PMI readings were not as robust as many had hoped for but not too surprising. France is still a lagging country and made no improvement as we could have guessed. German readings were much better and still expansionary but a little behind last month. EU markets sold off on the news despite the fact that improved Chinese PMI is a good sign that things may get better in the EU soon. The DAX moved to below 9950 today but is still above long term support levels and in position to make gains over the summer. I am trading a call on the DAX with a target entry below 9950 and one week until expiry.
5. Yen On The Fence
USD/JPY
Call/Put = Put
Entry = Above 101.85
My Trading Advice
The USD/JPY has been trading in a very tight range over the past 9 days. Abenomics and Tapering have met head to head, who will blink next is the question on everyone’s mind. This week I think that the flight to safety could be the ticket in this pair so I am trading a put but only with three days of expiry. My target entry is above 101.85.
More Tips by the Geek – 06/23-30/2014 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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