Tip from the Geek 04/13 – 04/20/2015: Riding The Storm Out
Top 5 Weekly Binary Options Trading Signals by the Geek
The market has been weathering quite a storm of late. Weaker than expected economic data, plunging/volatile oil prices, the Iranian nuclear deal, Greece, the FOMC, interest rate speculation and a poor expectations for earnings season have all combined to provide volatility and uncertainty for the market. Despite all the reasons why a sell-off could have occurred the markets are trading at or near all time highs. The US market is approaching an all time high while indices in Asia and the European Union have already broken out.
This does not mean that the storm is over. Earnings season, while already begun and already better than first expected, is still very very young and really gets going this week. There are only about 100 or so reports on the schedule but the sector representation is quite broad. The list is dominated by the financials and the big banks but also includes big names in technology, transportation, industry, consumer products and conglomerates. Tuesday alone is represented by two large too-big-too-fail banking institutions, the worlds top producer of microchips and leaders in two sectors of the transportation industry… Tuesday could be a market moving day.
On top of all this is is a big week for US economic data. There are at least 15 potentially market moving pieces of macro economic data ranging from the Fed’s Beige Book to TIC flows with labor, manufacturing, housing and inflationary data in between. Don’t look for any one piece to move the market but for the aggregate to point to spring uptick in economic activity… and for some possible volatility in the dollar and dollar driven commodities until the end of the week.
1. Strong Trend Following Signal
SPX
Call/Put = Call
Entry = Below $2105
Expiry = One Week
My Trading Advice
As a technical trader there are many kinds of signals. Long term, short term, weak and strong are only a few of the many classifications I myself use on a day to day and week to week basis. Each classification comes with its own unique qualities and methods of trading. Today my friends I want to point you out to a STRONG TREND FOLLOWING SIGNAL according to my simple trend following strategy. I have to admit that sometimes it can take quite a long time for this signal to develop but when it does you can be assured of profits.
First, a definition. My simple strategy relies on stochastic as the primary indicator of direction with MACD as a confirmation. I also use support, resistance and trend lines. To get a strong signal first the trend must be up, as it has been in the SPX for the past few years. Next the index must be bouncing off of a support or trend line with strong indications. This could be a double bounce confirmation or other sign but will be accompanied by a strong signal on the stochastic. The stochastic must be moving up in the %K and %D, with a bullish crossover, and then confirmed by a bullish MACD crossover. Basically what I am saying is that the SPX is showing a strong signal and I am trading on it. I am trading a call with a target entry below 2105 and one week until expiry. You can check out the chart I use to get this signal here, in the forum.
2. Get Long Gold
Gold
Call/Put = Call
Entry = Below $1200
Expiry = One Week
My Trading Advice
Gold is being affected by dollar values in the near term. This is causing prices to hang around $1200 and what is looking good as strong support. Dollar could cause gold to test support but I am expecting the economic data to support inflationary concerns and gold prices into the long term. I am trading a call on gold with a target entry below $1200 or as close as I can get below $1205 with one week until expiry.
3. Oil Floating
USO/Oil ETF
Call/Put = Call
Entry = Below $18.50
Expiry = Three days
My Trading Advice
Oil prices are being supported by declining production capacity, not production, production capacity. The US rig count is in decline and leading to a period in which production levels will fall off. This isn’t happening yet, oil could remain volatile, but signs of the bottom are in, for now anyway. I am trading a call on oil with a target entry below $18.50 and 3 days until expiry. I am picking a short expiry because I am not too sure about how long this pop will last.
4. Dollar Schmollar
USD/JPY
Call/Put = Call
Entry = Below 120.25
Expiry = Three Days
My Trading Advice
The dollar is gaining some strength, leading the USD/JPY higher, but the pair and the dollar itself is facing resistance. Both in the form of recent highs, the dollar indes and all time high, the USD/JPY a near 8 year high. The indicators are bullish, I expect a test of the highs, but more than that is very unclear. I am trading a call with a target entry below 120.25 but with only three days until expiry.
5. Parity!
EUR/USD
Call/Put = Call
Entry = Below 1.0560
Expiry = Three Days
My Trading Advice
Once again I am targeting a three day expiry. The EUR/USD is at support and I don’t think it’s going to hit parity this week, that was just to get your attention. I am looking for a bounce from long term support that could lead to a reversal, or at least a trading range. My position is a call, my target entry is below 1.0560 with three days until expiry.
More Tips by the Geek – 04/13-20/2015 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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