Tip from the Geek – Top 5 Binary Options Trading Tips 8/26-9/02/2013
Easy to understand Binary Options Trading Advices. Try Trading on CommuniTraders!
Michael is using the Communitraders platform for all of his tips. Follow along with the Geek’s progress in the forums.
Data Still Driving Markets
The international markets were mixed at the start of this week. New reports from China lifted shares in that country while Japanese stocks lost some ground to yen strength. In Europe the picture was the same. Most EU nations traded higher on the China news while a few of the more troubled nations lost ground on resurgent economic problems. Italy has once again emerged as a political and economic hot spot, blah blah blah.
In the U.S futures trading began the day in negative territory and it seemed at first at least that a bad durable goods report would send them lower. Alas, that was not the case. Perhaps traders expected today’s data to be worse than expected and it wasn’t as worse as they thought it could get. After an initial drop futures were lifted to near flat line and moved into positive territory just before the opening. By mid day the U.S. markets were firmly in positive territory and above long term support levels.
The durable goods number was not good. It showed a -7% decline in month to month orders for long lasting big ticket items. The fact that the markets barely seemed to pause this morning is testament to the notion the Fed and the data are still driving the markets. Bad durable goods equals, in some minds, no September tapering and therefore easy money and a bull market. I still think it’s too soon to tell whether September tapering will happen or not. This week will deliver a lot of economic data for us to digest and there will be even more before the next FOMC meeting. This week we will see second estimates for GDP as well as jobless claims and housing data. Next week is the all important jobs bundle including the ADP, Challenger, NFP and Unemployment reports.
1. S&P 500 Bouncing Bouncing Bouncing
S&P 500
Call/Put = Call
Entry = Below 1665
Expiration = One Week
My Trading Advice
The S&P is at a critical technical juncture. The rising fear of tapering has brought the index down to the long term trend. So far the trend line seems to be holding up but light volumes indicate that many traders are still on the sideline. The question of tapering is still on the table and likely won’t be answered until next week. Until that time the S&P is likely to trade within a range defined by the long term trend, near term fear and the resistance of the all time highs.
On the long term charts of weekly prices the index has very weak bearish momentum with an up trending stochastic line. This chart also shows that the index is oversold in the short terms. Moving down to the short term chart of daily prices the index is indeed oversold and currently making a bullish crossover. This crossover, from the perspective of the long term trend, is a buy signal. Because we are faced with an important FOMC meeting next month and there is technical resistance there is technical resistance so I am keeping my trade length to one week. I am trading a call on the SPX with a target entry below 1665 and one week until expiration. On a side note, if you get into this trade Wednesday or later a 3 day expiration may be a better choice.
2. Yen On The Brink Of Another Slide
USD/JPY
Call/Put= Call
Entry = Below 98.50
Expiration = One Week
My Trading Advice
The USD/Yen has been winding up for two months. The pair is closing in on the convergence of a down sloping resistance and an up sloping support line, an area ripe for break out. The pair is indicated up on the long and short term charts by both MACD and Stochastic analysis. All that is needed for a full blown bullish stance on this pair is for it to break above the 99.75-100 level. Until then I am cautiously bullish. I am trading a call with one week until expiration and a target entry below 98.50.
3. Germany Is Still My Pick For The EU
DAX
Call/Put = Call
Entry = Below 8425
Expiration = One Week
My Trading Advice
Germany is still my pick as best place to ride out EU recovery. Not only has Germany and the EU as a whole shown improvement the new twist to Chinese outlook (optimistic and stable) adds to the chances of a second half rebound. The DAX has recently confirmed resistance turned support at the 8300 level and is now moving up. I am trading a call on the DAX with a target entry below 8425 and one week until expiration.
4. Facebook Finally Paying Off
Call/Put = Call
Entry = Below $41
Expiration = One Week
My Trading Advice
Facebook is hot. Now that it has shown it can make money investors have shown they can stomach the stock. And boy can they. This stock has moved up more than 66% since the last earning statements and there is no sign of it slowing down now. I am trading a one week call on Facebook with a target entry below $41.
5. Apple Of My Eye
Apple
Call/Put = Call
Entry = Below $505
Expiration = One Week
My Trading Advice
Apple is another hot stock on the move. The Icahn/Soros development sent the stock back over $500 and for the last week it has been consolidating there. Now it is poised to move up again. In fact, the stock chart looks so good to me it is making my Spider Sense tingle. You know, the feeling you get when you see a trade lining up and know in your bones its right. I am trading a call on Apple with one week until expiration, a target entry below $505 and a nod to the Lords Of Trading that I didn’t jinx myself with such a strong endorsement.
More Tips by the Geek – 8/26-9/02/2013 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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