Tip from the Geek 03/30 – 04/06/2015: Dawn of A New Quarter

Top 5 Weekly Binary Options Trading Signals by the Geek

This week is the dawn of a new quarter. The end of Q1 2015 and the start of Q2 marks a transitional period for the market. For the past two quarters economic momentum has peaked and even retreated a bit, leaving us with weak expectations for corporate earnings. Now we are entering a period in which economic activity is expected to increase and therefore should help to lift economic and corporate outlook. Something to keep in mind is that while some economic indicators have been on the weak side many if not all of the labor indications have remained steady to strong. In my view so long as labor remains strong the consumer is getting healthier and corporate profits will soon follow.

 

This is going to be a big week for data. Not only is it the end of a quarter, it is also the end of a month so that means lots of macro-economic data. My eyes will be on the labor data including Challenger, ADP, jobless claims, NFP, unemployment and hourly earnings. There is other data to watch as well. Auto sales, ISM, construction spending and factory orders to name a few. So long as the data remains steady and in line with current recovery expectations things should remain bullish in the market. Another thing to look out for is earnings season, which starts next week.

 

 

 

1. Economics Or Earnings

S&P 500

Call/Put = Call

Entry = Below 2,070

Expiry = One Week

 

My Trading Advice

There is a lot to consider when looking at the SPX this week. The index is marching higher with its eyes on the all time high. This week economic data should help lift the market and so far this Monday as I write my tips it is coming in strong. Next week things might get different. Earnings season is starting and at this time expectations are poor. This could put a ceiling on the indices but at the same time could also be setting us up for a wicked season of positive surprises.

 

The SPX is trending higher in the long term and supported by the indicators, rising trend lines and longer term support levels. The daily charts show an index that is bouncing from support following a mild correction and confirmed by the indicators. The stochastic and MACD both confirm support at 2,050 and are set up for a swing to the upside, in line with the trends. I am trading a call on the SPX with a target entry below 2,070 and one week until expiry.

 

 

 

2. A Golden Opportunity

Gold

Call/Put = Call

Entry = Below $1185

Expiry = One Week

 

My Trading Advice

Gold prices fell over the weekend as new speak from Fed chair Yellen indicated the economy was on track with rate hike expectations. This doesn’t really mean anything as current expectations are for this summer but vague on exactly which meeting, June July or September. The news caused gold to drop and is providing a golden opportunity. Gold will either rise because the dollar weakens, or because inflation expectations move up. I am trading a call with a target entry below $1185 and one week until expiry.

 

 

 

3. The Dollar And The Data

EUR/USD

Call/Put = Put

Entry = Above 1.0840

Expiration = One Week

 

My Trading Advice

The dollar weakened over the past two weeks as the latest FOMC statement filtered through the market. This caused a surge in the euro that has since seen a peak. This week the data should help to support the dollar and a retest of recent lows versus the Euro. I don’t think parity is coming this week but I am playing a put with a target entry above 1.0840 and one week until expiry.

 

 

 

4. Watch The Data, Watch The Dollar

USD/JPY

Call/Put = Call

Entry = Below 119.85

Expiry = One Week

 

My Trading Advice

The USD/JPY failed to break out of its trading range due to the knew FOMC stance on the pace of rate hikes. This put the pair back to support and now is bouncing higher. This week the data should help to support current dollar values and a retest of the top of the 5 month trading range. I don’t think we’ll see a break out but I am bullish this week and trading a call. My target entry is below 119.85 with one week until expiry.

 

 

 

5. Don’t Slip On The Oil Slick

USO/Oil ETF

Call/Put = Put

Entry = Above $17

Expiry = One Week

 

My Trading Advice

Oil prices may have broken the down trend but are still near the lows and looking weak. Not only are supply and demand issues not supporting prices, an apparent deal with Iran over its nuclear program have added additional downward pressure to prices. Oil may not make a new low but I am confident it will at least retest the low so I am trading a put this week. My target entry for the USO is above $17 with one week until expiry.

 

 

More Tips by the Geek – 03/30 – 04/06/2015 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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