Tip from the Geek – Top 5 Binary Options Trading Tips List 1/21-28/2013

Easy to understand Binary Options Trading Advices. Try them at Home!

Bull Speed Ahead, Captain!

The markets, especially the US equity markets, are looking like it’s rally on. Last weeks moves to new five year highs on the S&P, and all time highs on the Transports and Russel 2K, are a positive sign that a retest of the 1565 level is likely for the S&P. In the near term there is not much to fear, the fiscal cliff is past and the debt ceiling deadline is still a month away. This week the markets will be driven by earnings and economic data. The earnings calendar is full this week and should prove to be a significant run of events.

Last weeks we were dominated by the banks.  Most of the major US banks and quite a few of the small and regional banks reported and left us with a lot to think about. The big banks, while not earning in the way they once were, are at least recovering from the financial crisis and purging themselves of bad debt and the “one time charges” associated with the mortgage crisis and ensuing legal issues. The smaller banks did quite well in my opinion. These banks are not burdened by fallout from the mortgage crisis and are stealing market share from the larger institutions. This week there are still quite a few banks to report but these are all small regionals.

This week will be dominated by the sheer volume of corporations reporting, around 500 or so.  The size of the list this week is important because it will be better cross section of the earnings scene. There are also quite a few major international corporations that could drive the markets higher, or lower. The number one on my list is Apple.  The iPhone maker reports Wednesday after the bell and will undoubtedly spark some volatile trading in the after hours.

1. Apple, Apple, Apple

Apple

Call/Put = Call

Entry = below $500

Expiration = end of the month

My Trading Advice

Apple is reporting earnings this week and investors will be picking the report apart like never before. Evidence is mounting that the iPhone and iPad maker’s sales are slowing and that it is losing some market share to Galaxy and Android phones. A recent report that production of screens for iPads has ground to a near halt echo the sentiment began last September. Demand for iPhone 5 is not as strong as first expected and that has been impacting the stock price for the last 4-5 months. There really should not be a surprise here because we have been expecting that weakness for months.

Technically, the stock is way oversold on a long term basis.  The drop to $500 and below has brought the stock to long term resistance and the long term up trend line. Base on this I would be looking for a bounce of some sort. Short term, on the daily charts, the stock is also oversold  and is also showing signs of a bottom. The release on Wednesday, which will really affect the stock going into Thursday, could be a turning point. Apple is definitely not as strong as it once was but it is also definitely still very strong.  What other company earns $14 per share, quarter after quarter. Expectations are for this quarter are in the range of $13.50-$14, so long as Apple can match this range the long term trend should remain intact. I am trading a monthly call on Apple if I can get in under $500. I may also wait until Wednesday to get in, just to see what happens pre-earnings release.

2.S&P 500 Marching To New Highs

S&P 500

Call/Put = Call

Entry = below 1475

Expiration = end of the month

 My Trading Advice

The S&P is marching on to new five year highs driven by a lack of worry and what I will call “OK” earnings. The lack of worry, as evidenced by the low low level of the VIX, coupled with a steadily improving world economy are also supporting the move. This weeks earnings season will be important for the near term trend but will likely just be a blip on the radar over the long term. The trend is definitely still up and unless the earnings are ridiculously bad this week they won’t change that.

The index is currently above the long term support/resistance of 1475 and at a five year high.  This level dates back to the Head&Shoulders Reversal from 2007-2008 and could provide some resistance. Five years is a long time to be losing money, now that the market is back folks may try to get out. I am still bullish on the market, at least in the short term, and will be looking to buy calls with monthly expiration.  Because the market is a little extended and overbought I am expecting a little pull back early in the week and will target an entry below 1475.

3.Euro Trash Or Euro Cash?

Eur/USD

Call/Put = Call

Entry = 1.3300

Expiration = end of the month

My Trading Advice

The Eur has been consolidating over the past week above a significant long term support line. The move above this support was in conjunction with the uptrend begun last summer and technicals support a continuation of this trend. On the daily charts momentum is bullish and stochastic is giving a nice buy signal. I am trading calls on this pair with end of the month expiration with a target entry below 1.3300.

4. Yen Ready For Profit Taking

USD/JPY

Call/Put = Put

Entry = above 90

Expiration = end of the week

My Trading Advice

The Japanese yen is in a long term downtrend versus the dollar, one that I believe may only be half over. It did not take long for the Yen to move to 90, in line with Shinzo Abe’s target, and long term technicals are strongly bullish (for the dollar). This week is another great place for Forex Traders to take profits which could help put pressure on this pair intra-week.  I am playing put on this trade if I can get in over 90 but am only willing to give it a week because of my long term outlook.

5.Big Mac’s And Big Profits

Mcdonald’s

Call/Put = Call

Entry = below $92

Expiration = end of the month

My Trading Advice

McDonald’s has been suffering, primarily due to it’s operations in China.  Now that China has returned to some expansion McDonald’s should benefit. This should be evident in their earnings release on Tuesday. Short term technicals are bullish but overbought, which is not necessarily a bad thing, and long term the technicals are also bullish.  Long term is also showing a base of support that has been building for over 6 months.  I am trading a call on McDonald’s with a weekly expiration if I can get in under $92.

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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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