Trading tip from the Geek – 7 Easy Binary Options Tips for September 04-07-9-2012
Global economic data continues to drive the international equity, commodity and currency markets. Last weeks data was mixed, driving hopes of stimulus one day and dashing them the next. One thing that is certain is that the global economy is still in decline.
European Shares Led By Miners
FTSE 100
Entry = below 5800
Call/Put = Call
Expiration = End of the month
My Advice in 50 Words
The broad European market started this week off with a big push forward. Mining stocks were boosted by weak Chinese data that points to further stimulus from the worlds largest economy. Over the last week the FTSE has retreated to support at 5700 and is now in position to move back up as stocks benefit from a potential move from China.
Spain Will Make The Biggest Move
IBEX
Entry = below 7500
Call/Put = Call
Expiration = end of the week
My Advice in 50 Words
The Spanish Ibex is the European index with the most to gain from global stimulus and financial bail out. The country’s week financial system is on the verge of officially requesting financial aid from the ECB, a move that is expected in the next week or so. The Ibex has also retreated to support over the last week with a nice bullish candle appearing last Friday, confirming the 7100 level. Momentum and relief will help to drive this stock to a new five month high.
China Hard Landing On The Way
Hang Seng
Entry = below 19,500
Call/Put = Call
Expiration = end of the month
My Advice in 50 Words
China’s hard landing is on the way. The latest reports show that manufacturing in the country has sunk to new lows. Weak demand in Europe, China’s largest trading partner, and the US have helped to depress China’s economy. The new, weak, data has helped to fuel hopes that the Chinese central bankers will do something to boost the country’s struggling economy, which will in turn help the global economy. Asian stocks will continue to rebound so long as stimulus hopes persist.
Japan Struggles With More Than Global Weakness
Nikkei
Entry = above 8700
Call/Put = Put
Expiration = end of the week
My Advice in 50 Words
Japan is struggling with more than just a weak global economy. The island nation is still recovering from the series of natural disasters that rocked the region over the past couple of years. Japan has managed to rebuild or recover from most of the damage but the effects on business are still reverberating through the system. The Nikkei will likely get dragged up by the rest of Asia as stimulus hopes drive market prices but not before a retest of support near 8500. I am looking to play a short term put on the Nikkei this week.
Australia Shines Among The Global Players
ASX
Entry = below 4350
Call/Put = Call
Expiration = end of the month
My Advice in 50 Words
The Australian index confirmed support at the start of this weeks trading after falling to a new two week low. The country’s retail sales were a mildly disappointing surprise after the strength seen earlier in the year. Australia has been experiencing a boom centered around mining and miners and has been able to buck most of the bearish economic trends seen by the rest of the world’s major economies. Chinese, US and/or European stimulus will help to boost these stock as well.
The Euro Holds Strong
Eur/USD
Entry = below 1.2550
Call/Put = Call
Expiration = end of the week
My Advice in 50 Words
The Euro has been gaining strength against the dollar on hopes of ECB stimulus and a Spanish bailout. The currency ended and reversed a long down-trend that has coincided with the Eurozone financial crisis. The currency pair is highly susceptible to news from the ECB and could easily lose ground if the ECB fails in its mission to support the European economy. The Euro may consolidate before moving upward but with the expectation that some form of stimulus/bail out is imminent I expect the Euro to continue up this week.
US Markets Poised To Lead The World
S&P 500
Entry = below 1420
Call/Put = Call
Expiration = end of the month
My Advice in 50 Words
The US markets will start September a day behind the rest of the world. The US markets were closed Monday due to the Labor Day Holiday. Last month the S&P 500 moved above long term resistance and consolidated just over 1400, where several bullish candlesticks confirmed the new support level. The US markets will likely lead the rest of the world since the US portion of the global financial crisis is largely behind us.