Tip from the Geek – Top 5 Binary Options Trading Tips 11/11-18/2013
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.
Are The Markets Unstoppable?
Last week the markets sold off in the face of ECB rate cuts and better than expected economic data. For anyone trading bull positions Thursday was probably pretty scary. I know I have several open positions that could be impacted by bearish activity such as that. However, Friday’s bounce was so bullish as to make me think the markets could be unstoppable. The U.S. is still in QE mode, the EU is still in QE mode, Japan is in QE mode, China is in QE mode and the economic trends are positive. As long as money is flowing in and the data is leading us up then I can’t really see any reason for the markets not to go up.
Monday morning U.S. futures trading was mostly up. The Nasdaq was the only of the three major indices to not be in positive territory. The global markets were a bit more mixed but were generally calm. One of the big news stories was Chinese Singles Day. A new, at least to me, holiday that celebrates being single. Sort of like a reverse Valentines Day. The point of this mention is that Singles day is the biggest on line shopping day of the Chinese year and is expected to blow away last year and all of Black Friday this year. That’s a lot of shopping. Another big story this week is the break down in talks with Iran over its nuclear program which led me to one of this weeks trades.
It’s a pretty light week for economic data. Not to say that nothing is happening, it’s just the usual stuff. Nothing too market moving and nothing delayed by the U.S. government shut down. There are 15 scheduled U.S. releases and another couple of dozen from around the globe. Expectations are not high and mostly in line with current trends. In light of the unexpected GDP and NFP numbers last week I think there is a good chance of positive surprise this week as well. I made the usual 5 trades this week and also one bonus trade (on oil). Go on Communitraders to find out what it is!
1. The Unstoppable S&P 500
S&P 500
Call/Put = Call
Entry = Below 1770
Expiration = One Week
My Trading Advice
Now that the Fed meeting, the ECB meeting, the NFP, GDP and Debt Ceiling are all behind us (for now) there is not much to give the market pause. The long term trend in the SPX is up. Momentum is bullish and stochastic is bullish. There are still some divergence in the indicators but that could change soon. While the indicators are still on the rise we can not officially call the current peaks divergent. For now, at least in the longer term, the index is drifting up above and making new highs. The trend is nice and steady, not too strong and looking bullish.
In the shorter term stochastic has retreated below the upper extreme to moderate levels. The MACD is mildly bearish but the 12 month analysis of it and the stochastic show support along the long term trend line. Adding to that the last three MACD peaks are very strong and suggest that bullish momentum is not yet played out in this time frame. I am trading calls with one week of expiry and a target entry below 1770.
2. Apple Innovates Again?
Apple
Call/Put = Call
Entry = Below $520
Expiration = One Month
My Trading Advice
I heard a whisper this morning that leads me to believe that Apple is still on top. I heard on the new, CNBC, that Apple could be on track to release a curved screen device in the near future. After further investigation this whisper received some confirmation on the internet. This could be the next major innovation for the company and a sign it is still number one. I am trading a one month call on Apple with a target entry below $520.
3. Euro Momentum
EUR/USD
Call/Put = Put
Entry = Above 1.3395
Expiration = One Week
My Trading Advice
The EUR/USD has been falling hard. Short term momentum is bearish and very strong. At the same time the pair if forming an interesting symetrical triangle in the near term that is below a previous support zone. I am bearish on this pair in the near term simply on momentum. I am trading a put with a one week expiration and a target entry above 1.3395
4. Gearing Up For The BOJ
USD/JPY
Call/Put = Call
Entry= Below 99.25
Expiration = One Week
My Trading Advice
The BOJ meets next week. Even though they have previously said that they would not alter QE policy until at least next spring I think there is a chance something might change next week. Even if it is just what they say and not policy. Since QE is still rampant in the U.S. and the EU, against what had been until now the prevailing sentiment, Abenomics may not be strong enough. I think the market may agree with me because the USD/JPY is looking like it is gearing up for a bullish move. Indicators are gathering strength and point to a retest of the 100 level. I am trading a call with a one expiry and a target entry below 99.25.
5. Gold, Still Bearish
Gold
Call/Put = Put
Entry = Above $1285
Expiration = One Week
My Trading Advice
I was thinking of playing a call this week on the expectations of a snap back from this level. However, after reviewing my charts I can’t. The metal is trading below a support level and looking rather bearish. I have to follow the charts so a put it is. I am trading one week of expiry with a target entry above $1285.
More Tips by the Geek – 11/11-15/2013 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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