Tip from the Geek – Top 5 Binary Options Trading Tips 12/30/2013-01/06/2014

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.

 

 

End Of The Year Trades

Well my friends it is the end of yet another year. It has been a good year for trading, the equity markets have been rising steadily along with a steady tide of incoming positive economic data. This week will be another of mostly light trading volumes. Monday and Tuesday will most definitely be lighter due to the New Year Holiday. U.S. markets will close early on New Year’s Eve and then reopen two days later on January 2nd. Thursday, January 2nd, could be a big day. It will be the first day of the trading year and the possible first day that trading volumes return to normal. It could even be the day that the market decides if 2014 is going to be a bull or bear year. I for one am in the camp that 2014 will be another bull year.

 

There is some important data this week although the really important Non Farm Payrolls and Unemployment claims won’t be released until next week. Monday Pending Home Sales came in at a better than expected +0.2%, breaking a 2 month streak of declines. Tuesday, the Case-Shiller index is expected to also show some expansion in the housing market. Also on Tuesday, Chicago PMI and Consumer Confidence are also expected. PMI could decline, a good sign for the economy as it shows that inflation is tame. Consumer confidence is expected to rise but how much is yet to be determined. Later in the week Unemployment Claims, which have spiked over the last three weeks, will be followed by Car and Truck Sales.

 

We need to see data in the sweet spot.  The spot that means that the economy is growing, but no so fast that inflation is settting in. Or so fast that tapering will be stepped up. But not so slow that tapering is halted. Or even slower and tapering gets reversed. Adding to the confusion surrounding the end of the year trade is the onset of another earnings season. Alcoa is the official start, releasing next Thursday. Until then there will be a smattering of semi-important announcements but nothing that should have the ability to reverse the market.

 

 

 

1. Long Term Trend Is Up

S&P 500

Call/Put = Call

Entry = Below 1840

Expiration = One Month

 

My Trading Advice

I had considered trading a much shorter term put position this week but just couldn’t bring myself to do it. The index is extended and in an obvious place where a pull back could happen, I’m just no too sure that it will happen. Or if it doesn that it will be very deep or very long. Becuase of this, and the fact that the long term trend is still up, I had to trade a call. Also because of the my uncertainty over a pullback, I choose to go with a long term position again, just like last week.

 

The long term trend is up. The Santa Rally came with a very nice spike in volume and a long white candle that I take as very bullish. Since then the Holidays have taken a bit of the volume out of the market but it has drifted higher. There could be a small pull back, or the market could pick up right where the Holidays end and keep moving higher. My trade this week, a call with a target entry below 1840 and one month until expiry.

 

 

 

2. DAX Set To Move Higher

DAX

Call/Put = Call

Entry = Below 9575

Expiration = One Month

 

My Trading Advice

The DAX is moving higher along with the global recovery. It is still being hampered by other weaker EU nations such as France but it is still moving along. France, I have to point out, just raised taxes on the rich, again. It’s a wonder that there are any rich still living there. The data is still good enough to support steady growth so I am trading calls with a longer term outlook like I have with the S&P. My target entry is below 9575 with one month until expiry.

 

 

 

3. Euro Bulls Banging At Resistance

EUR/USD

Call/Put = Put

Entry = Above 1.3775

Expiration = One Week

 

My Trading Advice

Holiday trading has seen the EUR/USD pair move up to test resistance. Several apparently strong bullish candles have been capped by the long term resistance of the upper trading range boundary. The indicators are very weak and do not support a break out. I think that once the Holiday is officially over the pair will sink back down to support at least as low as 1.36250. I am trading a put with a target entry above 1.3775 and one week until expiry.

 

 

 

4. The Yen Is Trending Lower

USD/JPY

Call/Put = Call

Entry = Below 105.00

Expiration = One Week

 

My Trading Advice

The yen is moving lower versus the major world currencies. This means that the USD/JPY is trending up. The Japanese government is still on track with QE plans and it’s monthly bond buying program while at the same time the U.S. tapering has begun. Provided there is no change to the taper out look, tightening of BOJ policy or other unforeseen events this pair should keep moving higher at least until the next BOJ or FOMC meeting, whichever comes first. I am trading calls on this pair with a target entry below the recently broken 105 level and one week until expiry.

 

 

 

5. 2014 Bear Market In Gold?

Gold

Call/Put = Put

Entry = Above $1210

Expiration = One Week

 

My Trading Advice

I have begun to hear talk of 2014 being a bear market in gold. This may be true or it may be the first sign that a bottom is about to form. Regardless, I am still bearish in the metal at least in the near to short term and trading accordingly. With the price of gold above $1200 and me still thinking a retest of sub-$1200 lows is in order has me trading puts this week. I am targeting entry above $1210 with one week until expiry.

 

 

More Tips by the Geek – 12/30/2013-01/06/2014 Trading Tips On Forum.

___________________________________________________________________________________________

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.

 

Think you know better than our experts?? Have a Second Opinion??  Post your trading advice on our Trading Tips Forum or at the bottom of the page! Join CommuniTraders and Start Trading,  only on BOTS.com new growing community.  

 

*** Please read Binary Options Weekly Trading Tips guide to understand better how to use the trading tips. Start Smart with BinaryOptionsthatSuck.com.