Tip from the Geek – Top 5 Binary Options Trading Tips 7/22-29/2013
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Earnings In Focus This Week
This week is one where earnings will be in focus. More than one quarter of S&P 500 companies will be reporting this week making it the biggest week for earnings by market cap. So far earnings have been OK to goodish. The big banks were great last week and I expect to see the same from the regionals this week. There have been a few earnings misses but so far nothing too alarming. McDonald’s reported early Monday, missing by only 2 cents due mainly to currency exchange. The fact that comp sales rose in the U.S. is what I think investors should focus on.
Economic data is on the light side this week. There is some housing and employment data but nothing of market moving value. Next week however will be really important as it is the start of a new month. Not only will be seeing the next round of NFP, ADP and other monthly releases there is also the first estimate of second quarter GDP and another FOMC meeting. Now that tapering is firmly on the table the market is expecting to hear some word of when and how tapering will be done. So far the data is still not strong enough to meet the thresh hold requirement stated by Ben Bernanke. Next week could change all that if the data is better than expected. At this time GDP estimates are ranging from -0.1-0.7% but I think this might be low.This week the fundamentals are unchanged. Next week could be different. This week I am trading in line with the prevailing trends.
1. S&P 500 Edging Into New Highs
SPX
Call/Put = Call
Entry = Below 1695
Expiration = One week
My Trading Advice
This is going to be an important week for earnings. Second quarter results and full year guidance will be the driving force for the S&P. Last week the index set another new all time high and indications are it is not the last. The long term charts are bullish and indicating a buy but with the FOMC and the next round of data due just next week there is some economic resistance to watch out for. On the mid term charts of daily prices momentum is waning but still strong while stochastic is pointing up, supporting the longer term buy signal.
This week should be a good one for buying calls. There could be some sideways action this week but the trend is up and the tide is rising. The economy is improving and earnings will reflect that. Look to enter positions near the support of the previous all-time intra-day high of 1687. I am trading calls with a target entry below 1695 and one week till expiration.
2. Abe Position Strengthened
USD/JPY
Call/Put = Call
Entry = Below 100
Expiration = One Week
My Trading Advice
The Japanese elections ended as expected. The strengthened position of Shinzo Abe bodes will for his long term plans and the ailing Japanese economy. The results were priced into the market though, as evidenced by the +1% drop in the USD/JPY in overnight trading. The drop however is likely another buying opportunity in the long term out look. The pair is trading along the short term moving average with bullish indicators. Based on my longer term analysis I am expecting at least a retest of the highs near 104.75. I am trading calls on the USD/JPY with a target entry below 100 and one week until expiration.
3. Gold Retracing Ahead Of FOMC
Gold
Call/Put = Call
Entry = Below $1320
Expiration = One Week
My Trading Advice
I am still bearish on gold longer term. However, the metal is making a retracement and with the move above $1300 I am expecting a little more upside. The cap may be the FOMC meeting next week but it is too soon to make that call. Because of my longer term analysis and the upcoming FOMC meeting I am going to stick to a one week position. I am trading calls on gold with a target entry below $1320 and one week until expiration.
German Rebound In The Second Half
DAX
Call/Put = Call
Entry = Below 8330
Expiration = One month
My Trading Advice
I am bullish on the world economy and Germany for the second half of the year. The ECB is still predicting a pick up and I see no reason to doubt it at this time. Germany is the best place to ride out an EU recovery because of the strength of it’s economy. There are signs that German manufacturing and exports are already expanding. U.S. earnings reports and economic data will be a boost for the EU and Germany. I am trading calls on the DAX with a target entry below 8330 and one month until expiry.
5. Euro Moving Higher
EUR/USD
Call/Put = Call
Entry = Below 1.3200
Expiration = One Week
My Trading Advice
The euro appears to be range bound at this time but moving higher within that range. There is no expected change to fundamentals this week so I don’t expect too much from the pair. The weekly and daily charts are both indicating a buy so I am trading calls this week. I am sticking to weekly positions here as well because of the FOMC meeting next week. My target entry is below 1.3200 with one week expiration.
More Tips by the Geek – 7/22-29/2013 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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