Tip from the Geek – Top 5 Binary Options Trading Tips List 17-24/12/2012
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Ho Ho Ho, Santa Rally Is Coming To Town
This week started with the US markets opening broadly and strongly higher. Futures trading had indicated a slightly higher opening but not the strength that followed. I’m still bullish into the end of the year and Monday’s opening is only bolstering that opinion. I am expecting volumes to be light as is the case every holiday season. Even with light volumes this market strength is something I like to see. Nearly every sector moved higher today including the financials, transports, semis, techs, small caps and blue chips.
The situation around the world is brightening. We are emerging from a period of problems, troubles and poor outlook. Now we are transitioning into a time of solutions and, hopefully, stability. Worry of Europe is fading, the boiling pot of debt and lending issues has finally returned to a simmer. Asia, primarily China and Japan, are both moving forward if along different paths. Now it is our turn. Once the Fiscal Cliff is finally put to rest business, the markets and Americans will be able to relax and refocus on building the nation.
1. S&P 500 Makes A Strong Bounce Early Monday
S&P 500
Call/Put = Call
Entry = below 1420
Expiration = end of the month
My Trading Recommendation in 50 Words
Today the S&P 500 moved up from the support of its short term moving average and quickly broke through early resistance at 1420. There will be more significant chance of resistance when the index reaches the 1430 level again. This has been an important number over the past four months and could be again. However, I think that the S&P will move up through 1430 and continue up to retest 1465. The markets are definitely in bounce mode and the S&P will be moving higher. Any entry below 1420 looks good this week for daily, weekly and monthly calls.
If the S&P fails to present an opportunity for me to get in again below 1420 I will be looking to buy any dips. News of the Fiscal Cliff negotiations, hope and worry will be driving near term volatility. The 30 minute charts of the S&P are great for day to day trading the S&P and often presents several buying opportunities each day.
2. Japanese Elections Over, Markets Rally
Nikkei
Call/Put = Call
Entry = below 9800
Expiration = end of the week
My Trading Recommendation in 50 Words
The Japanese elections are finally over and, as expected, Shinzo Abe has been elected prime minister. Japanese stocks rallied on the news. The incoming Prime Minister has already pledged to whatever it takes to boost Japanese GDP, including unlimited easing and instituting public works. Japanese stocks rallied on the news, mostly on the expectations of a weaker yen. Weaker yen means that Japanese companies can be more competitive overseas and that is seen as a necessity for business growth.
The chart of the Nikkei is a little scary looking. The index has turned nearly vertical and has opened up two gaps in recent weeks. On the upside the move is accompanied by high volumes and with the expected easing and yen printing strategy laid out for us I think the move could continue. I will be looking to get into the Nikkei for a weekly closing below the 9800 level.
3.The Yen Is Slip Sliding Away
USD/JPY
Call/Put = Call
Entry = below 83.75
Expiration = end of the month
My Trading Recommendation in 50 Words
The yen dropped on the news of Shinzo Abe’s victory. This may seem counter to the expectations in the face of confirmed unlimited easing. The dip is only profit taking. The yen has made an impressive move up and it is only right for some money to be taken off the table.
The yen broke through long term resistance last week and made a new high. The yen should continue on this path, after a brief pull back/consolidation. There may be another day or two of this selling pressure but I think it will be short lived and is better taken as a chance to buy weekly or monthly calls rather than try to buy daily puts. There is definitely going to be more yen soon, a lot of them. There is really no place for this trade to go but up.
4. European Minds On The Fiscal Cliff
FTSE 100
Call/Put = Call
Entry = below 5900
Expiration = end of the month
My Trading Recommendation in 50 Words
Its funny how after a year worrying about the Eurozone crisis they are now worried about our Fiscal Cliff crisis. The FTSE 100 recently broke through some resistance and is now retesting the strength of the new support. This pullback should be short lived and is also most likely just some profit taking. I will be looking to get into a monthly call while the index is below 5900 but will be on sharp watch for a break down of support and possible drop below.
5. The Euro Is Breaking Out To New Highs
Eur/USD
Call/Put = Call
Entry = below 1.3150
Expiration = end of the month
My Trading Recommendation in 50 Words
The Euro broke out to new highs against the dollar last week and the charts look good for a continuation of that trend. However, the Euro has been moving up steadily over the last 6 days without a single down day and is ripe for profit taking at this level. I am looking for a dip in which to get in again in order to ride out this uptrend into the end of the month.
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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 AnyOption Binary Options Trading Platform.
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