Tip from the Geek – Top 3 Binary Options Trading Tips List 11/26-12/3/2012
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Will Santa Rally The Markets Or Not?
I haven’t heard too much about it yet but the Santa Rally, or lack of it, will soon be on the table. Last week the markets rallied, albeit on weak holiday volume, and recovered important technical and psychological levels. This rally was supported by positively developing negotiations over the fiscal cliff, Black Friday expectations and general holiday euphoria. Now its back to business. Black Friday results are beginning to pour in and hopes for Cyber Monday are getting thrown into the mix.
Cyber Monday has been the biggest online shopping day of the year for three years running and this year is expected to be the same. If the increases in sales that are estimated for this past weekend carry over into online shopping this month will be very good retailers.
Total shopping over the Thanksgiving weekend, including online, is already estimated to have risen 12.% over last year and totals nearly $60 billion dollars. Considering how important consumerism is for our economy and corporate profits I take that as a good sign. Now, when I add Cyber Monday into the mix the Christmas Season and the chance for a Santa Rally are starting to look good.
1. The S&P And A Technical Bounce
S&P 500
Call/Put = Call
Entry = below 1410
Expiration = end of the week
My Trading Tip
The S&P 500 looks good to continue its technical bounce, last weeks action brought the index back over the important 1400 level and this weeks opening has so far held. The indexes drop to support just before the holiday was driven by fear, poor revenue and the fiscal cliff. Now, the index is bouncing from that support with fear in decline and the possibilities of being carried higher by holiday shopping on the table.
Going forward the index faces a lot of resistance and longer term the outlook for growth remains weak. Any bounce we get from here remains suspect until the index makes a new high (above 1465) and economic data supports acceleration in the economy. Momentum on the S&P 500 daily charts suggests that the index will at least retest the 1350 level but I think the index moves higher rather than lower in the short term. Right now I am trading weekly calls on the S&P when I can get them near support. I don’t want to hold them too long because I also see the possibilities for resistance and news to send the markets lower.
2. Yen, Yen and More Yen……
USD/JPY
Call/Put = call
Entry = below 82.50
Expiration = end of the week
My Trading Tip
The yen is in decline and it will probably stay that way until the BOJ and the incoming political leadership get their wish. Japan has been in the grip of GDP lethargy and inflation for many years and the BOJ has been trying to combat this with fiscal policy. So far they have failed to significantly alter conditions for the island nation. Now, the probably next prime minister of Japan, Shinzo Abe, and his Liberal Democratic Party are calling for “unlimited easing”. The call has reportedly exposed a rift in ideologies among BOJ board members but the schism should not impact Japans efforts to devalue its currency. I am trading call on the JPY/USD, but only weekly at this time. The move have been sharp and the election putting Abe on the seat has not yet happened. Both of these factors leave a sharp pullback or correction on the table.
3. Greece Weighs On Europe
FTSE 100
Call/Put = call
Entry = below 5800
Expiration = end of the week
My Trading Tip
Greece, once again, is weighing heavily on Greece. The deal supplying them money, anticipated for Monday, had yet to surface at the time of this writing. Any solution, though good for Greece, will be only be a short term salve for the European markets. Not to say that they are in any worse trouble than before, just that Greece is only one small and minor factor in the overall European issue. One thing that a Greece deal will do is remove some of the uncertainty the European markets are facing.
Once the deal is announced, and surely Greece will get the aid it needs, I am looking for a small relief rally in European stocks. The FTSE is in mid-bounce, similarly to the US markets, and will move up to resistance before any move to the downside that may come. Should other factors turn positive in the European sector the move may continue up but as of yet I am not seeing anything. I am trading calls on the FTSE with one week expirations at this time.
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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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