Tip from the Geek 03/23 – 30/2015: Making A Run For New Highs
Top 5 Weekly Binary Options Trading Signals by the Geek
The bulls got a double dose of good news from the Fed last week. According to policy, statement and comments the economy is strong enough to remove the word patient from the statement, to expect rate hikes sometime over the summer and that while strong, is not quite as strong as previously expected so the pace of rate hikes will not be quite as quick as first thought. This means that the economy is good and that we can expect a tolerant low rate environment for much longer than we first thought, which was a pretty long time. With this in mind, and thinking about this years growth prospects, I can’t help but remain bullish.
The indices are now making a run at new highs. The NASDAQ Composite within 2% of reaching its all time high for the first time in 15 years. Crossing this line will be a monumental event and one that I hope does not spark correction. Until then things are looking good, the indices are facing some resistance but looking strong in the near term and picking up strength in the longer term. Momentum alone could break them to new highs and higher depending on what bears may be lurking in the shadows. Things to look out for this week is economic data, although data is rather light. Only 6 releases, aside from the weekly jobless claims, are on the list. The most important may seem to be the 4th quarter GDP final revision but I don’t think so. That number is very rear looking and not as important as home sales, durable goods orders and others that will play into the 1st quarter GDP.
1. Can The Bulls Do It
S&P 500
Call/Put = Call
Entry = Below 2,110
Expiry = One Week
My Trading Advice
The bulls began a stampede last week when the Fed revealed their latest statement. The charge led them to break above several potential resistance zones and move above the short term moving average. The move is confirmed by the indicators which are both on the rise with plenty of room to move higher. The only caveat is that resistance in the form of the all-time high is still present and could easily reverse the move. The thing is, there is no data due out this week with the power to do that. Next week is a different story.
Next week is the first week of April and the next round of macro-economic data. This means auto sales, ISM, Factory Orders, Construction Spending, jobs creation, unemployment and many others. If the data is going to reverse the market it will be next week, not this one. Until then the market is moving higher with some space to roam, a little. Momentum will likely take it up to retest the current high if not set a new one with next week a target for additional resistance. I am trading a call with a target entry below 2,110 and one week until expiry.
2. Oil Has No Support From Saudi Arabia
USO/Oil ETF
Call/Put = Put
Entry = Above $16.50
Expiry = One Week
My Trading Advice
Oil prices are sliding and do not have support. There is some sign of possibly future decline in oil production but no real sign yet. US storage remains high, and now the Saudis say they and OPEC will not support prices. Not only that, their own production levels have reached near record highs. I am bearish on oil still and trading a put this week. My target entry is above $16.50 with one week until expiry.
3. Euro Parity, Not Looking Like It Now
EUR/USD
Call/Put = Call
Entry = Below 1.0875
Expiry = One Week
My Trading Advice
The euro was heading for parity versus the dollar and I have to admit I was on the bandwagon. The FOMC may have put an end to that thought because it doesn’t look like were going to see the euro evenly matched against the dollar any more. I am bullish on the pair now as I see the dollar retreating from a peak and entering a possible trading range. I am trading a put on the EUR/USD this week with a target entry above 1.0875 and one week until expiry.
4. Bullish On The Yen….Yeah, Not So Much
USD/JPY
Call/Put = Put
Entry = Above 119.85
Expiry = One Week
My Trading Advice
The same change in sentiment that reversed the euro trade reversed the yen as well. This pair was on the brink of reaching new highs just as the EUR/USD was on the verge of reaching new lows. Now that the fed as shifted the currency balance by changing their rate hike agenda this pair is also retreating in search of market support. I am bearish on the USD/JPY and trading a put this week. My target entry is above 119.85 with one week until expiry.
5. Gold Rises Again
Gold
Call/Put = Call
Entry = Below $1180
Expiry = One Week
My Trading Advice
Gold prices also received a lift from the Fed. In the near term retreating dollar values are enhancing gold value and in the long term physical buyers and hedgers against inflation are stepping back in. I am bullish on gold and trading a call this week with a target entry below $1180 and one week until expiry. Once the metal hits the $1190-$1200 resistance zone it may consolidate but we’ll have to wait and see.
More Tips by the Geek – 03/23 – 30/2015 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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