The Geek Is Here! . . . Now 2015 Can Really Start

Top 5 Weekly Binary Options Trading Signals by the Geek – Tip from the Geek 01/05 – 01/12/201

It’s the first trading week of 2015, post holiday’s. This is the week that we find out what the market wants to do, what the market thinks is going to happen and maybe, just maybe, get an idea of what trading is going to be like this year. Going into the end of last year things were looking pretty good, nothing has changed since then and I am an eager bull, waiting for the signals. This week there could be a number of potential signals and catalysts for the market coming from a variety of global sources.

 

First off, its the first week of the new month which means lots and lots of economic data from the US and around the world. Next, Wednesday is the release of FOMC minutes, another well documented catalyst of the market (don’t forget about the Beige Book next week!). Next, a heavy round of economic data starting with ADP and running through Challenger, jobless claims, NFP and unemployment numbers as well as a myriad of other macro-data impacting US and international markets. Looking a little further out, there is a round of central bank meetings on the horizon, starting with the ECB’s non-policy meeting on Wednesday of this week then followed later this month by a policy meeting on January 22, a meeting of the BOJ on January 21 and the FOMC on January 28.

 

 

 

1. Buy The Dips

S&P 500

Call/Put = Call

Entry = Below 2040

Expiry = One Week

 

My Trading Advice

This week should economic trends remain strong. NFP and ADP are both expected in the range of 250K, a decent number but down from last months surprise NFP of 314. Other data, such as auto/sales, factory orders, ISM and consumer credit are expected to be strong. On the flipside, I would not be surprised to see a little selling the first few days of the year, as the market is in ripe position for money managers to start the year with a little profits on the books. With this in mind, and considering the rosy outlook for US 2015 growth, any dips should be bought.

 

On a technical basis the S&P 500 is setting up for another trend following bounce from support. There are several strong levels of support just below the current level, including previous all time highs, the long term trend line and a long term moving average. I will be looking to get into the action once the index begins to reach or show signs of support. This week I am trading a call, with a target entry below 2040 and one week until expiry.

 

 

 

2. Gold Is Appealing

Gold

Call/Put = Call

Entry = Below $1195

Expiry = One Week

 

My Trading Advice

Gold prices have stabilized above long term support. I don’t mean to say that they are stable, or non-volatile, just that the down trend is over and that there is long term support present. Economic trends have led the FOMC to end QE, and to tighten if ever so slightly their outlook on raising interest rates. This, along with a general expectation that inflation will present itself in the US sooner or later, has kept gold above $1180 and now there are emerging signs of physical buying among the worlds largest consumers of it, namely China. I am trading a call on gold this week, based on technical and fundamental factors, with a target entry below $11995 and one week until expiry.

 

 

 

3. Dollar Strong, Yen Weak

USD/JPY

Call/Put = Call

Entry= Below 120

Expiry = One Week

 

My Trading Advice

The struggle for dominance between the USD and the JPY is almost primal. The USD is strong, the JPY is weak and yet it is still struggling against the superior foe. Economic trends and central bank policies in the respective countries are diverging like two trains on different tracks and taking the currencies along with them. Economic this week should support the dollar, which is at new highs versus the euro BTW, and send this pair higher. I am trading a call on the USD/JPY with a target entry below 120 and one week until expiry.

 

 

 

4. Oil Slides, Again, I’m Bearish, Again

USO/Oil ETF

Call/Put = Put

Entry = Above 19

Expiry = 3 day

 

My Trading Advice

I felt like Forest Gump writing this tip. You know, I won a medal, again, and then I met the President, again…. Oil prices are falling because there is a lot of it, even if we are at peak oil, the supply level is large, production capacity is large, demand isn’t as robust as the market would like and prices are falling. Now it looks like momentum is taking over and could carry it even lower. I am trading a put on the USO this week, with a target entry above 19, but only 3 days until expiry because of the momentum factor.

 

 

 

5. Banking On Profits

JPM

Call/Put = Call

Entry = Below 61.50

Expiry = One Week

 

My Trading Advice

The banks are expected to do well this time around, or should I say in the most recent past quarter. The quarter being reported on just next week. Yes my friends it is earnings season again, led off by Alcoa on Monday and followed by JPM on Wednesday. I am bullish on the banks, based on multiple factors including expectations, recent highs on the banking index, the consumer and overall business conditions. I am trading a call on JPM with a target entry below $61.50. This expires before actual release day but I want it that way, the stock is at a low now, at support, and will bounce back before the release.

 

 

 

 More Tips by the Geek – 01/05 – 01/12/2015 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.

 

Think you know better than our experts?? Have a Second Opinion??  Post your trading advice on our Trading Tips Forum or at the bottom of the page! Join CommuniTraders and Start Trading,  only on BOTS.com new growing community.

 

 

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