Tip from the Geek – Top 5 Binary Options Signals 05/26-06/02/2014
What To Do What To Do? Geek Tips!
Last week the S&P 500 along with the Dow Jones Transportation average set new all time highs. This week, US and global traders had three full days to ponder the question what to do on Tuesday. The Memorial Day Holiday has the US markets closed making Tuesday the beginning of the trading week. There are two things for traders to consider in my opinion. Will the market go higher or will it go lower? If you think the economy is stalling, that its time to “sell in May and go away”, that the annual summer slow down in the market is upon then this new all time high is a potentially great place to sell short. There are already some shorts in the market so this might be a time for them to add to those positions. This could lead to a sell off.
If you are in the camp that believes in the secular bull market, the long term economic trend of slow growth and the spring bounce back in the US/global economy then the new highs are a good place to go long. There will most likely be a battle between the bulls and the bears this week but there are several things that lead me to maintain my longer term bullish stance. Starting with the nearest and most immediate threat to the markets, Ukraine, the election there went semi-smoothly from what I have read so far and things seem to be at a point where the tensions can begin to dissipate. This situation will bear watching for the near to short term at least. Looking farther out employment trends are getting better, long and mid term unemployment claims are both at long term lows while jobs growth has been on the rise over the past few months. Not to mention the Leading Indicators are also on the rise. If the bulls win out, and I think they will, short covering could help to propel the market significantly higher.
1. The SPX Is At New Highs
SPX
Call/Put = Call
Entry = Below 1900
Expiration = One Week
My Trading Advice
The SPX made a new high, on light volume. The new high is in of itself a good signal. A new high is reason enough to enter a short term position simply because it means the market has enough momentum to break resistance. The light volume is a potential cause for concern but for now I will chalk that up to the holiday weekend. I wouldn’t have gone to work on Friday if I didn’t have too. The Ukraine elections may have also added some reason to remain out on Friday. Economic data last week was good, very good I think. Employment claims on a near term basis remain stable while in the mid to longer term outlook claims are on the decline. The leading indicators rose again, for the third month and existing home sales were better than expected.
On a technical basis the SPX is making a bullish stochastic cross, momentum is bullish, the index is making a long term trend bounce, breaking resistance, at a new all time and bouncing up against the upper Bollinger Band ™ ….a convergence of signals with or without volume. Looking at the other US indices shows the Transports at a new all time high, the Dow Jones Industrials bouncing from support with all time high as next resistance and the Nasdaq making a nice bounce/move up from support with confirmation. I have to say that I am bullish this week, trading a call on the SPX with a target entry below 1900. I may have to adjust my entry so check into the forum to find out.
2. The DAX Makes All Time New Highs
DAX
Call/Put = Call
Entry = Below 9875
Expiration = One Week
My Trading Advice
The DAX popped to a new all time on Monday morning. The positive end to last week plus the seemingly positive election were a big help. Adding to the positive vibe in stocks is a growing expectation that the ECB will move toward QE at the next meeting at the beginning of June. This expectation could help to lift EU indices until then. I am trading a call on the DAX with one week until expiry and a target entry below 9875.
3. Gold Weighs Heavy
Gold
Call/Put = Put
Entry = $1292
Expiration = One Week
My Trading Advice
Gold will weigh heavy in trader accounts this week as equities come into focus. A rising market coupled with dividend rates comparable to yeilds on the ten year treasury could lead traders to sell gold in favor buying other assets. Adding to this will be a loss of premium related to diminishing tension in the Ukraine. I am trading a put on gold with one week until expiry and a target entry above $1290.
4. Oil Losing Steam
USO
Call/Put = Put
Entry = Above $38
Expiration = One Week
My Trading Advice
Oil may be loosing steam now that the Ukraine elections have peacefully, more or less, come and gone. The new president is already taking steps to meet with pro-Russian separatists and Putin himself, who has also made steps toward such a meeting. The situation will bear close watching but I see oil prices moving lower this week, Brent moved lower on Monday. I am trading a put on the USO with one week until expiry and a target entry above $38.
5. Yen Trade On Technicals
USD/JPY
Call/Put = Call
Entry = Below 101.90
Expiration = One Week
My Trading Advice
Since there can be no expectation of the BOJ increasing stimulus the yen is trading on technicals. The FOMC meeting is still a few weeks away as well so there wont be any change to fundamentals there for a while. The pair is now moving up from a support bounce confirmed by candle and Bollinger Bands ™. The stochastic and MACD are both bullish as well. I am trading a call on the pair with one week until expiry and a target entry below 101.90.
More Tips by the Geek – 05/26-06/02/2014 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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