Tip from the Geek – Top 5 Binary Options Trading Tips 7/29-08/04/2013
Easy to understand Binary Options Trading Advices. Try Trading on CommuniTraders!
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Big Week For Global Markets
This is a big week for global markets. In the U.S. alone we are facing a meeting of the FOMC, the peak of earnings season and the latest round of monthly economic macro data. The broad market, as represented by the S&P 500, began the week with a mild decline but held recently breached previous all time high level. There could be some volatility this week but I am still firmly bullish and expecting the index to end the week on an up note. Economic data and the FOMC statements are expected to reveal more of what we already know; the economy is improving if slowly and tapering should be expected in the next few months.
Here’s a quick review of what’s up for the week. Early in the week we will get releases of pending home sales and the Case-Shiller Housing Index. That’s followed up mid-week with consumer confidence and the FOMC meeting, rate decision and policy statement. The second half of the weeks economic calendar begins Wednesday morning with ADP Employment data and Challenger Job Cuts Survey. Thursday is the weekly announcement of unemployment claims and then Friday is the eagerly awaited Non-Farm Payrolls report and Unemployment figures. Scattered throughout the week there is also Construction Spending, Auto Sales, ISM and 2nd Quarter GDP to consider as well. Even if the data does not show marked improvement this time around I’m getting more confident than ever economic growth is picking up. Two examples of this are the early Monday announcements from Toyota and Amazon that they are both hiring thousands of new employees for their North American Operations.
Don’t forget is is also another big week for corporate earnings. Monday alone was chock full of names like Merck, Pfizer, Wynn Resorts, Hertz, Anadarko, Caesar’s Entertainment, Herbalife and about 200 others. So far the earnings picture has been OK, not awesome but OK. Some companies are still struggling, some are missing on revenue estimates still but some are prospering and beating expectations. Basically it is a stock pickers market when it comes to individual assets.
1. S&P 500 Approaching Trend
S&P 500
Call/Put = Call
Entry = Below 1690
Expiration = 1 Month
My Advice
The S&P 500 has been trading in a narrowing range over the last two weeks. The index is consolidating in anticipation of this week, the big data week. Not only is it a big data week it is possibly the week we get some concrete information on tapering, when it will start and what it will look like. Over the past two weeks the index has created a new all time high, pulled back to test support and is now approaching the long term trend and a likely area for a bounce. The technical picture is rather good and is helping me to maintain my bullish stance. Once the data is out and traders have a chance to digest the data I am expecting the market to move higher. Before getting to bullish and entering shorter term trades I am going to wait for a stronger signal to develop. For now I am trading a long term call with one month expiration. My target entry is below 1690.
2. Gold, Still Bearish Longer Term
Gold
Call/Put = Put
Entry = Above $1325
Expiration = Week
My Advice
I am still bearish on gold longer term but am not convinced this is the start of the next down leg. The metal is indicated down at this time so I am trading a short term position. The metal is caught between two important support/resistance lines and a breakout is really required for me to have a firmer position. At this time gold is near the top of the range with declining indicators. I am trading a put on gold with a target entry above $1325 and one week until expiration.
3. Banking On A German Rebound
DAX
Call/Put = Call
Entry = Below 8300
Expiration = One Month
My Advice
German recovery efforts are taking hold and have left the country in position to benefit from global rebound. Now, I am not talking about any kind of booming world economy, just a mild expansionary recovery. Germany, which has been shifting to a more global economy, will benefit from that expansion. The index is trading near upper resistance with bullish long term technicals. Like with the SPX above I am entering a long term call position on the DAX while waiting for the stronger signal to appear. At that time shorter term positions will be appropriate. I am trading calls with one month until expiration and a target entry below 8300.
4. Yearning For Yen
USD/JPY
Call/Put = Call
Entry = Below 98
Expiration = One Month
My Advice
The yen did not break the 100 resistance level as I had anticipated last week. The yen strengthened after the Japanese elections solidified Abe’s position. Now, his reform plans are being pushed through government channels are expected to be seen in action soon. The sharp drop in the yen has also helped to sink the Japanese markets to a four week low, presenting a longer term buying opportunity for Japenese stocks and the USD/JPY. The pair is currently over sold in the short and long term and sitting on Fibonacci support. I am trading calls on this pair with a target entry below 98 and one month until expiration.
5. FaceBook Face Off
Call/Put = Call
Entry = Below $34.50
Expiration = Week
My Advice
Facebook revealed that it could in fact make money and investors then revealed that they still wanted to buy the stock. Facebook jumped by like 30% since last week and is now in play. This stock will likely provide many opportunities for binary traders now that it is in action. I am testing the waters with a call position to see just how much momentum is currently behind the stock. I am trading a call with one week until expiration and a target entry below $34.50.
More Tips by the Geek – 7/29-8/04/2013 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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