Binary Options Trading Recommendation for this week – Trading Tips and Market Information
Global equity markets rose into the end of last week, with the S&P 500 posting its biggest increase for the month of June in 13 years. Risk sentiment was higher into the Friday session after the latest EU Summit meeting, which produced more clear-cut results than investors had anticipated. Each of the 10 industry sectors in the S&P 500 finished higher, with the biggest gains seen in industrials, commodities, and technology companies. Specifically, Apple, Caterpillar, and Bank of America all showed gains of at least 2.5% while Exxon had an even more impressive session, with gains of 3%.
Many of these rallies were helped along by the huge surge in commodity prices, with oil rallying nearly 10%. This is the biggest rally oil has seen in more than 3 years and this is coming, in large part, from analyst expectations that commodity demand will remain healthy as long as the EU finance ministry is able to ensure that debt conditions in Europe begin to improve and manufacturing data bottoms out. Last week, the benchmark S&P index closed just above 1360, giving it a 4% rise in June (the best monthly performance since February).
The Dow Jones was higher by 280 points to close at 12,880 and the NASDAQ matched these trends with gains of nearly 3% (which is the biggest gain of the year). Traders looking to determine how long this rally can continue will do well to note volume activity, as nearly 8 billion shares changes hands in the US alone. This is more than 15% higher than the 3-month average, so these gains are likely to be supported into next week.
Progress Made at Last Week’s EU Summit Meeting
Most of this market optimism was no surprise, as it came on the heels of commentary made by EU finance ministers after the conclusion of last week’s EU Summit meeting. Markets in general were expecting little progress to be made (in line with meeting results that have been seen for most of this year) but this was not the case. Instead, member nations agreed to reduce requirements for banks in Spain to continue to receive emergency debt relief and there was also some suggestion that this could be extended to Italy as well.
The market rallies that resulted were quite strong relative to recent averages, so these trends look likely to remain in place as trading begins next week. Key data to watch out of the Eurozone will be seen with the Unemployment Rate, Producer Price Index, Retail Sales, PMI and the ECB Interest Rate decision on Thursday.
My Trading Recommendation in 50 Words
Given the strength of the latest rallies, I will be looking to trade against the momentum on shorter term time frames (since these moves look very bullish for the longer term). Preferred choice is to buy one hour PUT options in the EUR/USD at 1.2750, if given the opportunity.