Tip from the Geek – Top 5 Binary Options Trading Tips 10/21-28/2013
Easy to understand Binary Options Trading Advices. Try Trading on CommuniTraders!
Michael is using the Communitraders platform for all of his tips. Follow along with the Geek’s progress in the forums.
Markets Making New Highs
The markets are making new highs. This is obvious. The S&P made a new all time high last week, the Nasdaq a new 13 year high and other major global indices did the same. The relief that the U.S. government was able to come to terms, at least for a little while, was reason enough to drive the markets higher. This is on top of the long term trend bounce that begun two weeks ago. This week we will get the data we didn’t get at the beginning of the month due to the government shut down. The NFP number and unemployment rate will likely be in line with the expectations or better but won’t really matter because it is old. What will matter more will be the next round of NFP data two weeks later. From what I have heard the data will be delayed a week because of the shut down, ADP and Challenger data will likely be released on schedule. Traders will be on the lookout for any hints of damage to the economy from the shut down.
Earnings are another thing to keep an eye on. This week and next week are the biggest in terms of volume of companies reporting and for head line making names. So far earnings have been better than expected. Not great and there are certainly a few high profile misses to be concerned with but good enough not to get worried yet. Fourth quarter earnings may see a slow down due to the shut down, according to some analysts estimates but I’m not so sure about that.
Other things on the horizon now are central banks meetings. While still a few weeks off the data could impact the current view and either support growth or indicate that growth is slowing. Either way the data will affect the expectations concerning the FOMC/, the ECB and the BOJ. For the FOMC there is tapering and QE to consider. Will the data support it or hold it off for a while. Just today (Monday) Fed President Dudley said tapering could start within a couple of meetings. A couple is two, November and December. The ECB is still on the fence and has been leaving more stim on the table while indicating the economy is doing OK. Japan is still a wild card in my opinion. The BOJ has said it will hold off until the second quarter of next year before any more stimulus is to be considered but both it and Shinzo Abe are receiving criticisms over the strength of the recovery.
1. The S&P 500 Is Making A New High
S&P 500
Call/Put = Call
Entry = Below 1740
Expiration = One Week
My Trading Advice
The S&P 500 broke out to a new high last week. This for some is a scary time to enter the markets but for others a great time. Many successful traders will tell you that when a market is making new highs it can be a good time to buy and I am one of them. The market is bubbling with bullishness at this time and is indicated higher. The long term and short term charts are both firing off signals now for bullish positions. Not only has the index broken above the long term resistance of the previous all time high it has also broken above an upper channel line. The indicators are bullish; MACD is strong a strongly rising, stochastic is moving up with plenty of room for more.
At the same time the candles the are also strong. Six of the last eight days have had white candles with fat bodies. I would not call them Three White Soldiers but they are definitely fat enough to be considered bullish. Not to mention the candles come in the middle of the consolidation range and are an extension of the long term trend line bounce. I am bullish on this indicator and am trading weekly calls with a target entry below 1740.
2. Euro Moving Up With Little Reason
EUR/USD
Call/Put = Call
Entry = Above 1.3650
Expiration = One Week
My Trading Advice
The EUR/USD moved up unexpectedly last week, putting not one but two of my trades out of the money, for the moment. Those two trades are both longer term trades with an initial expiration of one month. They are both now only a few weeks away from expiry and I am still confident they will profit. The EUR/USD moved up last week on fear the U.S. would default, pushing it up to the very extreme top of the long term range. There is no bull signal at this time and the candles are not looking very promising. I expect the data tomorrow and the rest of the week will support the dollar and push this trade lower as expected. I am trading another put this week with a target entry above 1.3650 and one week until expiry.
3. Important Yen Level: 98
USD/JPY
Call/Put = Call
Entry = Below 98.50
Expiration = One Month
My Trading Advice
The USD/JPY has been struggling with where it wants to go. It is wrestling with Abe, Kuroda, the Japanese people, the USD, tapering, the data in Japan, the U.S. and globally. Over the long term the USD/JPY pair is trending sideways. The pair is clearly stabilizing and the 98 level is looking pretty good as the launching point for future bullishness. This week may be a big one for data, which will impact the economic impact, the central banks and currency pairs like this one. I am still bullish on this pair long term and am trading a longer term call with a one month expiration and a target entry below 98.50 or as close or below 98 as I can get.
4. Beware The Gold Mines
Gold
Call/Put = Call
Entry = Above $1315
Expiration = One Month
My Trading Advice
Gold is back above $1,300 but I am not convinced. The price of gold fluctuated wildly over the last two weeks because of the shut down and debt ceiling fiasco. I am still bearish on gold and see this as a chance to double up on positions I already have. I am trading a put on gold with a target entry above $1,315 and one month until expiration.
5. Bullish On Banks
JPM
Call/Put = Call
Entry = Below $54.50
Expiration = One Week
My Trading Advice
After looking at the Banking Index and JPM I am bullish on the banks this week. I am trading a call on JPM with a target entry below $54.50 and one week until expiration.
More Tips by the Geek – 10/21-28/2013 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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