Tip from the Geek 01/19 – 26/2015: Holiday Shortened Week
Top 5 Weekly Binary Options Trading Signals by the Geek
The US trading week is shortened due to a holiday but that does not mean the week is short on activity. This is bound to be a big week in terms of underlying fundamentals, economic data and earnings. Earnings season begins to shift into high gear, the banks have already begun to report and so far its not so good. The good news is that not all companies have given bad reports so far, we’re still in the opening phases of the season and the bar is set so low that it shouldn’t be too hard for the average company to beat. Economic data is also on tap this week with a focus on housing. Housing starts, building permits and existing home sales are scheduled for release throughout the week. Friday caps the list with the Index of Leading Indicators which are expected to rise.
The events to be wary of this week are two in number and may change the underlying fundamentals in global currency. Both the BOJ and ECB are due to release policy statements and both are expected to enact some form of additional QE. The BOJ has the support of the current regime which was recently reelected. The Japanese central bank is struggling to help spur economic growth in in the country but has so far fallen short. It is not clear what they may do but long term outlook supports a change in policy that will most likely send the yen sliding versus other major currencies. The ECB is also expected to add to QE, an addition that Mario Draghi has been hinting at for over a year. Fueling speculation is a recent ruling by EU courts stating that the possible intended actions were in fact legal in the union.
1. Economic Trends Are Up
S&P 500
Call/Put = Call
Entry = Below 2020
Expiry = One Week
My Trading Advice
There is a lot of headwind for the market to bear this week. Earnings, data, central banks and more will have an effect on near term trading. The long term economic trends are up and have been supporting the market, regardless of what many bears will tell you. This week’s data is largely rear looking and therefore not as big a deal as it may seem, we already know that December was weak in some respects so don’t expect too much from the housing sector. The LDI will be a little more important, especially if it shows an increase of activity from the previous month. Earnings and forward guidance will be the real telling factor.
The index is currently trading just above support after making a bounce like week. The market retreated to the long term trend line with indicators that are bearish in the short term but show support in the near and long term. This weeks action will be very important and could test support but in my view will be entry points for short and long term positions. I am trading a call on the S&P 500 with a target entry below 2020 and one week until expiry.
2. The Gold Rush
Gold
Call/Put= Call
Entry = Below $1275
Expiry = One Week
My Trading Advice
The gold rush is on. A number of near term factors have combined to send gold prices shooting higher from a base of long term support. The rising chance of an FOMC rate hike is long term support, physical buying, fear of falling oil and the surprise move by the SNB are three near term factors. The metal is just below the bottom of a range of potential resistance but has at least $25 to go before hitting the top. I am trading a call on gold with a target entry below $1275 and one week until expiry.
3. BOJ Supports The USD/JPY
USD/JPY
Call/Put = Call
Entry = Below 117.50
Expiration = One Week
My Trading Advice
The USD/JPY is in a long term uptrend but has recently suffered a pull back and consolidation along support. The pair is now trading near the bottom of the three month range with indicators in line with support and rolling over into a trend following buy. Central bank action and economic data are likely to send this pair higher as the BOJ supports stimulus and the US economic situation remains stable. I am trading a call on this pair with a target entry below 117.50 and one week until expiration.
4. Euro And The ECB
EUR/USD
Call/Put = Call
Entry = Below 1.1625
Expiration = Three Days
My Trading Advice
The euro has been sliding versus the dollar for months. The talk of QE being propagated by the ECB is mostly to blame, along with weak EU data which is helping to fuel the speculation. The recent ruling that proposed moves are indeed legal is only the latest news on the subject and leading to intensified speculation the meeting this week could bring forth an actual change in policy. The EUR/USD pair is moving lower long term but very extended at these levels. A pull back to resistance is likely, especially if the ECB only does what is expected and no more. I am trading a call on the pair with a target entry below 1.1625 with three days until expiry.
5. Five Feet High And Rising
USO/Oil ETF
Call/Put = Put
Entry = Above $18.25
Expiration = One Week
My Trading Advice
Oil supplies are still rising. A new report shows that Iraq is latest country to reach all time highs and this news will only help to put pressure on prices. Along with this new predictions have oil down near $30 but this may be over kill. Regardless, the bottom is still not in and I am still bearish. I am trading a put on the USO oil tracking ETF with a target entry above $18.25 and one week until expiry.
More Tips by the Geek – 01/19 – 26/2015 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.
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