Tip from the Geek 05/25-06/01/2015: Is A Summer Break Out Coming?
Top 5 Weekly Binary Options Trading Signals by the Geek
A number of market factors are falling into place like a line of dominoes. Earnings expectations, FOMC rate hike time lines, comments from Janet Yellen, inflation and economic trends are all leading the market with many assets setting up for big moves. In the US comments from Janet Yellen and slightly hotter than expected CPI have entrenched the 2015 rate hikes if not specified when it will come. Regardless, the news helped put a bid back in the dollar and sent markets moving from forex to commodities. It has also helped to support international indices which are trading at or near all time highs.
Asian indices are also being boosted by mixed economic data. In China weak data is supporting hopes for QE, adding a lift to indices. In Japan slightly stronger data, along with ongoing QE plans, are helping markets hit new all time highs. This week should see a continuation of trends. There are some notable economic releases from Japan including BOJ minutes, retail sales and core inflation are all on tap. In the US durable goods, consumer confidence, housing data and Chicago PMI are rounded out by 1st quarter GDP revision. There is a lot of speculation into whether or not the 1st quarter was a bust or not, but it likely won’t matter as much as the more recent data and outlook for the rest of the year.
1. US Market Building Steam
S&P 500
Call/Put = Call
Entry = Below 2125
Expiry = One Week
My Trading Advice
The US market is building steam while it slowly climbs the wall of worry. Events around the world and here at home have traders on edge but at the same time long term outlook is bullish. The FOMC is nothing more than a fear right now, a rate hike has long been priced into the market and when it comes will only reinforce the fact that the economy is on an upward trajectory. Upward trajectory means expansion, activity, revenue and profits.
The S&P is looking pretty solid from a technical standpoint. The market is trending higher, has set a new all time high, is consolidating above the old all time high, has bullish momentum and strong stochastic. This shows a rising market and one that I will continue to trade. I am trading a call this week with a target entry below 2125 and one week until expiry.
2. Oil Rising On Fear
USO/Oil ETF
Call/Put = Call
Entry = Below $20.25
Expiration = One Week
My Trading Advice
Oil is rising on fear, its the only thing. Supply remains high, even with recent draw downs, as does production. Neither of which are offsetting slow demand. At the same time fighting and tension throughout the middle east is causing fear to rise to new levels. Saudi Arabia and Yemen. Iran’s role in the Yemen conflict. The Iran nuclear deal. Iraq. ISIS. Syria. With all this, and strong techinicals, I am trading a call this week. Target entry is below $20.25 with one week until expiry.
3. Golden Opportunity
Gold
Call/Put = Call
Entry = Below $1205
Expiry = One Week
My Trading Advice
Gold has a lot of thing going for it right now. Its trading above a good support level, near $1200. It has been supported by a weakened dollar in the near term and is now being supported by signs of inflation. The CPI was a bit hotter than expected and while not a huge concern right now is reminder that inflation is coming. With inflation comes higher gold. I am bullish on gold this week, trading a call with a target entry below $1205 and one week until expiry.
4. Dollar Rocks The Boat
USD/JPY
Call/Put= Call
Entry = Below 121.50
Expiry = One Week
My Trading Advice
The CPI and comments from Yellen have strengthened the dollar and are sending it back to the top of its range versus the yen. The move was fairly strong and one that I have been waiting for if a long time in coming. The indicators are strong and pointing to a break out, along with a recent candle formation, so I am trading a call with a target entry below 121.50 and one week until expiry.
5. Euro Parity Back On The Table?
EUR/USD
Call/Put = Put
Entry = Above 1.100
Expiry = One Week
My Trading Advice
Euro parity versus the dollar may be back on the table with the events of last week. That being said we are a long way from it. The euro is losing ground versus the dollar as I write this but at current levels have a long way to go to hit 1.0500 much less parity. In any event the EUR/USD pair is moving lower with strong technicals so I am trading a put. My target entry is above 1.100 with one week until expiry.
More Tips by the Geek – 05/25–06/01/2015 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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