Tip from the Geek 02/16 – 23/2015: Up, Down or Sideways
Top 5 Weekly Binary Options Trading Signals by the Geek
The market broke out to new all time highs last week as a wave of good news, economic data and
earnings swept the globe. The news in question centers in two arenas. First is Russia and the
Ukraine; A major step forward was taken in the peace process but the question remains whether or
not it will stick. The second is Greece. An announcement was made last Thursday of an agreement
in principle for Greece bailout extensions expected to lead to a more finalized plan this week. As
usual the news is promising but could still come back to spook the market at any time. Regardless
of the danger the bulls took the news and rallied on it, carrying the major US indices to new highs
for 2015 and in some cased new all time highs.
This week is going to be another volatile one I think. There are man swirling currents moving the
market right now and any one could cause a move at just about any time. One such is oil. Oil
prices are firming but there is still no sign of a definite bottom. Another is earnings. Earnings are
coming in much better than expected but still not that great. The real bummer is that earnings
expectations for the current and following quarters are not positive, in fact based on the decline in
oil prices earnings are expected to decline. Economic data is on tap this week and includes several
important readings from the Federal Reserve system, housing starts and building permits,
industrial production figures, PPI, leading indicators and the all important minutes from the most
recent FOMC meeting. This round of data, and the FOMC minutes, are ever important because
they are all focused on the current quarter and expectations for the future. Not to mention when
interest rates may begin to rise.
1. Bullish And I Just Can’t Help It
S&P 500
Call/Put = Call
Entry = Below 2095
Expiry = 1 Week
My Trading Advice
I can’t help it, I am bullish on the market and the economy and I just can’t help it. It doesn’t help
that economic data, most importantly labor trends, continue to improve. There has been a little
softness in some areas of the economy as 2015 gets into high gear but overall things are looking
pretty good from where I sit. This week I will be looking at a couple of things and how they relate
to future expectations. First will be housing data, starts will be the first indications of expected
improvement for this quarter but I am not holding my breath for any robust numbers; the permits
number will be more important and indicate how many new will be expected later this quarter.
After that will be the manufacturing data and the FOMC minutes and any signs they give into the
strength of the economy and where we are heading.
The trends are up and now the index is breaking to new highs. The indicators are in line with the
trends and support the break to higher prices. Momentum is not strong yet but is on the rise so
don’t count out a continuation of the break. Stochastic is also on the rise and about to cross the
upper signal line, an indication of strength. I am trading a call this week with a target entry below
2095 and one week until expiry.
2. BOJ To World, QE Is Working
USD/JPY
Call/Put = Call
Entry = Below 118.50
Expiry = One Week
My Trading Advice
The yen has been in consolidation against the dollar for the past three months and is in the process
of moving up toward the top end of the range. The pair is supported by both FOMC and BOJ
policy but exact value remains in flux as economic data, geopolitical events and other news affects
volatility. The indicators are in line with the move higher and set up for a nice bullish entry,
following the longer term up trend. The BOJ meets this week and is not likely to add to QE, but
should remains in support of it and longer term weakness in the yen. I am trading a call on this pair
with a target entry below 118.50 with one week until expiry.
3. Gold Floating On Support
Gold
Call/Put = Call
Entry = Below $1235
Expiry = One Week
My Trading Advice
Gold prices have been in decline the past two weeks or more as FOMC expectations and
economics play havoc with the dollar. The dollar is still in an uptrend and expected to go higher
but has been in consolidation versus some major world currencies such as the yen and the euro.
The FOMC minutes, and economic data, should reveal a bias toward raising rates a little quicker
than the market currently expects. The down trend in gold is over, I am using current weakness as
an entry point for calls with a target entry below $1235 and one week until expiry.
4. Bursting The Oil Bubble
USO/Oil ETF
Call/Put = Put
Entry = Above $19.50
Expiry = One Week
My Trading Advice
Oil prices have seemingly stabilized around or just over $50 but I am not convinced this is the
bottom. There are some signs that production will slow in the current year but as of yet it and
supply are still high, not to mention the fact that the winter is wearing on without too much in the
way of really really cold weather. The price of oil is now trading at resistance and approaching the
long term trend line so I am still bearish on this commodity. I am looking to trade a put with a
target entry above $19.50 with one week until expiry.
5. Euro And The ECB
EUR/USD
Call/Put = Put
Entry = Above 1.1500
Expiry = One Week
My Trading Advice
The euro has been in a down trend of late driven by weak data in the EU, strong data in the US and
diverging policy between the two countries central banks. This week should be no different,
economic data should support growth in the US and there is no expectation for the ECB to make
any change at this meeting, it is a nonpolicy event. The pair is at resistance so I am trading a put
with a target entry above 1.1500 and one week until expiry.
More Tips by the Geek – 02/16 – 23/2015 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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