Tip from the Geek – Top 5 Binary Options Trading Tips 12/09-16/2013
Easy to understand Binary Options Trading Advices. Try Trading on CommuniTraders!
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Ho Ho Ho, Here Comes Santa!
The global markets started the week on a positive note, carrying momentum from last Friday’s rally. The NFP number was exactly in the sweet spot, big enough to signal growth but not so big it means the Fed has to taper. I for one feel that the taper fear was once again misplaced. The Fed has clearly stated what it will take for the taper to start, Janet Yellen has indicated support for the continuation of recovery efforts and none of the threshold targets have yet been met. I still think we’re looking at the spring of 2014 for any form of QE reduction from the U.S. The FOMC meets again next week and could reveal something new but I doubt it. This will be Ol Ben Bernanke’s last meeting as chief and an end to an era.
The BOJ will also be meeting next week and that is helping to move Japanese markets. Weaker than expected data is helping to fuel speculation that the BOJ will increase its QE policies sooner than the previously stated 2nd quarter of 2014, if needed. They could do something next week. Kuroda indicated that the bank could increase the current bond buying program or move into something a little more aggressive. This week will be a big one for China as well. The country has a long list of economic reports due out that could have global ramifications. U.S. data is limited for this week. There is an index of mortgage rates, unemployment claims, retail sales and the PPI to watch out for.
1. Spyder Is Making New Highs
SPX
Call/Put = Call
Entry = Below 1810
Expiration = One Week
My Trading Advice
The long term trend of the SPX is still up and it is looking real good to continue the current bounce off of the 30 day moving average. The indicators on the daily charts are currently bearish but in light of the up trend, the support of the moving average and the economic data this near term peak in bearish momentum is a buying opportunity for the bulls. The long term indicators are still bullish and could easily rise to a new peak along with the lead of the shorter term charts.
There are some things to be on the look out for. The new budget debate is on, the political climate could change in a heart beat but I think that after the last time it won’t be too bad. The career politicians can’t risk their lucrative jobs over the bad PR, especially if they tank the economy. There is also seasonal earnings from the retail sector. So far the shopping season has been very positive, just not stellar but I also think this will not hurt the market too bad. Finally the FOMC meets next week. There is some fear of a taper starting but I wouldn’t count on it. The long term trend is up and that is what I’m trading. I’m buying calls on the SPX with a target entry below 1810 and one week until expiry.
2. Yen Setting Up To Move Higher
USD/JPY
Call/Put = Call
Entry = Below 103.00
Expiration = One Week
My Trading Advice
The USD/JPY is setting up to move higher. The strong NFP data helped to firm the dollar while at the same time weaker than expected Japanese data has raised the chanced for more QE from the BOJ. The pair has made a bounce from the short term moving average but is approaching a potential resistance at the 103.75 level. In the near to short term I expect the pair to move up and test resistance. If the BOJ comes through with QE then I expect the pair to break through and keep moving higher. I am trading a call on this pair with a target entry below 103 with one week until expiry.
3. Euro Trending Higher
EUR/USD
Call/Put = Call
Entry = Below 1.3725
Expiration = One Week
My Trading Advice
The EUR/USD is in an uptrend. I’m not sure why but it is and I can’t argue with that. Perhaps the strong U.S. data has helped to stabilize future outlook and caused traders to move into the riskier currency. In any case indicators are bullish and on the rise. There could be some resistance ahead when the pair retests the most recent high near 1.3850. This high may coincide with the FOMC meeting next week. Until then I am bullish on the pair and trading a call with a target entry below 1.3725 and one week until expiry.
4. Still Not Bullish On Gold
Gold
Call/Put = Put
Entry = Above $1230
Expiration = One Week
My Trading Advice
I still can’t get bearish on gold. There just isn’t any reason too at this time. The economy is improving and tapering, though not now, will happen soonish. I expect to see gold drop down to retest the long term lows around the $1200 level. I am trading a put on Gold with a target entry above $1230 and one week until expiry.
5. Nikkei Moving On Yen Speculation
Nikkei 225
Call/Put = Call
Entry = Below 15650
Expiration = One Week
My Trading Advice
The Nikkei made a nice bounce off of it’s moving average at the start of this week, driven by the U.S. data, taper and speculation of the BOJ. Weaker than expected data in the island nation increases the chances of more QE from the bank which would boost share prices. The speculation should help keep the Japanese market elevated until the meeting itself. Should the BOJ increase it’s stimulus policies the Nikkei should continue to rally. I am trading a call on the Nikkei with a target entry below 15650 and one week until expiry.
More Tips by the Geek – 12/09-16/2013 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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