Tip from the Geek – Top 5 Binary Options Trading Tips List 22-27/10/2012
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Op-Ex Sell Off Caught The Markets Off Guard But Is It The Beginning Of The End?
Last week’s market sell-off caught the markets off guard. Options expiration week, which usually adds some volatility, brought the largest one day decline we have seen in many months. A string of disappointing earnings reports from tech giants like Intel and Google sparked the move that brought the S&P down to a critical support level.
Needless to say the drop sparked some nervousness in me as well. My trades for the month are treading water at this point, some in-the-money and some out. My overall sentiment for the market is still bullish for the near term. We knew that earnings were going to be poor in the third quarter, it is not a surprise. Earnings for the 4th quarter should be an improvement over the last and signs are good at this point that they could even surpass the current expectations.
Economic indicators have been showing signs of improvement and stabilization in the US and China. Whether or not this is the beginning of the end of the rally or the start to the next leg up is still in question. Things are still bad in the perspective of long term growth but they are at least OK in terms of right now. The global slowdown was already expected to show short term improvements in the fourth quarter and now the pundits are talking about Q3 as an earnings trough.
The FOMC meets this week as well. Their statement, plus the release of the Advance 3rd quarter GDP figures is what I think will give the market its direction. I still think that the economy will carry the markets higher in the near term.
US Markets Cycling For The Fourth Quarter
S&P 500
Call/Put = Call
Entry = below 1430
Expiration = end of the month
My Trading Advice
October is traditionally a month of volatility because of portfolio re-positioning. Many large institutional accounts end their fiscal quarter in October and they usually do some selling and buying to capture gains and reposition for the fourth quarter. This past Friday’s sell-off was overly sharp and could have been exacerbated by the coincidental anniversary of the Black Monday sell-off of the 80’s. This correction, like that one will likely end with the markets even higher than they were before as investors and traders pick up bargains.
Spain Will Lead The European Markets Higher
Ibex
Call/Put = Call
Entry = below 7900
Expiration = end of the month
My Trading Advice
The European markets have been ratcheting higher over the last few months as Spain and other ailing countries have fought their way back into semi-financial stability. This weekend the Spanish people, except for the separatist Basque region, voted in favor of austerity. This vote is one more sign that the problem, while not gone, is at least being worked on. Confidence in the Eurozone is on the rise and so are their markets, at least for now. Long term resistance is looming on the horizon.
Don’t Hate The Euro
Euro/USD
Call/Put = call
Entry = below 1.3050
My Trading Advice
Growing confidence in the Eurozone means growing confidence in the Euro. The Euro regained the $1.30 level last week in a strong move and is now showing support there as well. The currency should continue to advance toward it next resistance around $1.3200 for the near term. The Spanish vote for austerity is a vote for the EU and the Euro but be careful, politics in the region are volatile and the tide could turn at any minute.
Techs Face A Rocky Road
Intel
Call/Put = Put
Entry = above $21.75
Expiration = end of the month
My Trading Advice
Intel is only one of several tech companies who have reported earnings below the consensus. The industry, though still expanding, is not expanding the way it once was. A declining rate of growth, not poor results are what is hurting Intel. Intel has been trending down for many months and the candle signals that formed around the earnings release and subsequent days do not inspire confidence in me.
Exxon Will Retest Its Five Year Highs
XOM
Call/Put = Call
Entry = below $92
Expiration = end of the month
My Trading Advice
Exxon has been advancing in leaps and bounds over the last three years. Since hitting its lows the stock has increased over 60% and is now trading near five year highs. Friday’s sell-off brought the stock down to the short term moving average and an attractive entry point for short term trading. High oil prices in the third quarter will help this stock post good earnings and drive it to retest its five year highs. Exxon is scheduled to release its statement November 1st, the stock should drift up until then.
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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 Mihcael’s trading tips are based on AnyOption Binary Options Trading Platform.
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