Tip from the Geek – Top 5 Binary Options Trading Tips 5/13-20/2013 – Now on CommuniTraders!
Easy to understand Binary Options Trading Advices. Try Trading on CommuniTraders!
ATTENTION GEEK FANS: From now on all of my tips will be based on the assets and expiry’s found on CommuniTraders! For those of you who are not yet familiar with Communitraders it is the new social trading platform created by ThatSucks.com (former BinaryOptionsThatSuck.com). The biggest difference is the expiry’s available on Communitraders are not the same as those I have been using with my Broker. Instead of End of Month it will be One Month and the same for the end of week, that will change to one week. One month is thirty days from purchase, one week is seven. If the Tips are trigged during the week, set the expiry time to 1-5 days so the trade will be expired on weekend. As always, if you have any questions about my weekly tips, Communitraders or anything on BOTS.com don’t hesitate to ask me or one of my colleagues here at BOTS.
Fundamentals Back In The Spotlight
Don’t forget that I have started using the Communitraders platform for all of my tips. Follow along with my progress in the forums.
Now that the latest round of expected fiscal easing is past us the markets can focus on the fundamentals. The central banks have all made their moves to help support the still frail economy. The FOMC will continue to purchase $80 billion a month in securities and promises to tell us before they stop. The ECB has lowered its rates and fallen in line with U.S. policy, good for the EU economy but bad for euro values near term and the BOJ has set its targets. The targets, bold by most standards, may be an indication that more easing could be expected in Japan. To date there has not been much to stand in the way of the Abe trade.
Earnings are still improving and the labor markets seem to be stabilizing to the point of “almost strong”. Up trending housing data, today’s unexpected gain in retail sales and other economic indicators support both of those trends. Earnings outlooks are on the dim side for now but I think that could change. More jobs and higher sales means more money. We have already seen a trend of better than expected earnings on light to weak revenue. Imagine the possibilities for corporate earnings if our streamlined economy suddenly produces revenue as expected, or better than expected.
S&P futures were in the negative this morning going into the open. The numbers were lifted marginally by the retail sales figures but never crossed into the green. Asian markets had a mixed Monday, one index up by more than a percent, another down by the same measure. The carry over into the European markets was to the downside but they seemed to recover some of the loses going into the second half of their day.
1. S&P 500 Consolidating Above 1600
S&P 500
Call/Put = Call
Entry = Below 1630
Expiration = One Week
Why Should you Trade
The charts of weekly closing prices is showing a strong buy according to my favorite technical indicators. The daily charts are strongly bullish, peaking after the recent break to all-time high prices. The near term charts are suggesting another buy signal is forming on this chart as well. The fact that prices have remained at this elevated level without a pullback while the indicators are softening is indicative of this signal. I remain bullish on the index and do not foresee a catalyst for reversal in the next few weeks.
There is a lot of data coming out this week so it may be turbulent. There may be a weak point here or there but I am expecting the overall trend to remain one of improvement. There are over 25 U.S. economic reports and another several dozen from around the world. The U.S. reports are dominated by housing figures ranging from starts to building permits and Housing Index. I am trading calls on the S&P 500 with a target entry below 1630 and an end of the week expiration. Patient traders may be able to get in below 1625.
2. Euro Weakened By ECB Rate Cut
EUR/USD
Call/Put = Put
Entry = Above 1.297
Expiration = One Week
Why Should you Trade
The recent rate cut by the ECB is good for the EU economy and should help spur it back into growth. In the near term it is weakening the euro versus the dollar. Adding to the pressure is a strengthening U.S. economy. The long term indicators are still bearish and the near term is indicated down. I am trading puts on the EUR/USD with a target entry above 1.2970 and a one week expiration.
3. The Japanese Economic Orchestra, Conducted By Shinzo Abe
USD/JPY
Call/Put = Put
Entry = Above 101.75
Expiration = End Of The Week
Why Should you Trade
The long term charts of the USD/JPY are bullish but in decline. This is matched on the daily charts with a potential divergence from indicators. Together these two charts would signal a blaring sell signal but with the move orchestrated by Abe and Kuroda this chart may not perform exactly as expected. I am trading a one week put of the USD/JPY in expectation of a pullback but I remain bullish on this trade longer term.
4. Financials Get Lift From Sector Rotation
Bank Of America
Call/Put = Call
Entry = Below $13
Why Should you Trade
There is a great sector rotation going on right now. Investors are moving out of defensive stocks and into cyclicals. The financial and tech sectors should be great areas for short and longer term plays for bulls. I am trading calls on Bank Of America with a one week expiration and target entry under $13.00. The stock is making a bounce from the short term moving average, is consolidating under resistance and looks good for a break out.
More Tips by the Geek – 5/13-20/2013 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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