Tip from the Geek 04/27–05/04/2015: Bulls Not Waiting

Top 5 Weekly Binary Options Trading Signals by the Geek

The bulls are not waiting for the FOMC meeting like I thought they might. The indices are breaking out to new highs on the backs of technology, the NASDAQ and the Seattle scene. The earnings reports from several of the west coasts leading companies including Starbucks, Amazon, Microsoft and Google helped propel the market higher and momentum is building. This week should be another good one for earnings as well. We start off with Apple who reported after the bell on Friday (after I write this article). Expectations are big for the company and led the stock to test its all time high even before the report was released.

 

On top of earnings there are few events that could turn the week into a roller coaster ride for investor. First up is the GDP released scheduled for Wednesday morning. Next up is the FOMC meeting scheduled for Wednesday afternoon. The two of them could combine in a number of ways affecting outlook. Current expectations is for the GDP in the range of 2.2% and no interest rate hike from the FOMC. GDP could be stronger or weaker than expected, which will impact outlook for the FOMC. The FOMC could indicate dovish or hawkish view on interest rate hikes; either sending ripples through the market starting with the dollar, moving into gold, oil and equities.

 

 

 

1. A Shiny New High

S&P 500

Call/Put = Call

Entry = Below 2,120

Expiry = One Week

 

My Trading Advice

This week is going to be crucial for the market. It will all come down to future and forward outlook. The FOMC meeting is probably the most crucial aspect of this weeks forecast simply because of how wide ranging the effects of their decision will be. If they are hawkish it means the rate hike could come sooner, like in June, and the dollar will strengthen. If they are dovish, like a hike in September, the dollar will weaken. The thing to remember that both of these two views are consistent with longer term trends; the market is growing and strong enough for a rate hike.

 

The index is breaking out to new highs. That is a fact, the index crossed resistance and is indicated higher. The trend is up, driven by economic recovery and earnings growth with no end in sight. There is a chance that this quarters reports will show net decline in growth but even so forward expectations are for full year growth, and growth next year. The simple fact that the index is breaking to a new high is a signal in and of itself, the data, the earnings and the technicals only support it. I am bullish and trading a call this week. My target entry will be below 2,120 with one week until expiration.

 

 

 

2. Shiny Gold

Gold

Call/Put = Call

Entry = Below 1190

Expiry = One Week

 

 My Trading Advice

Gold has been volatile over the last week as it continues to consolidate near the $1200 levels. The index dipped down to test the lower end of support in the $1175-$1185 range and as expected, found it. I was already bullish on the metal when I entered my trade and the pop from support to $1200 that occurred Monday morning as the market was opening has only increased my sentiment. I am trading a call this week, my target entry is below $1190 with one week until expiry. The FOMC meeting is going to cause a lot of volatility in this metal so I suggest getting in before if you can.

 

 

 

3. Oil Bubbles Near Highs

USO/Oil ETF

Call/Put = Put

Entry = Above $19.75

Expiry = One Week

 

 My Trading Advice

Oil can be a tough asset to trade because it is affected by supply/demand, near term news and most importantly fear. The price of oil is now at or near longer term highs and I see it there based on fear. This means there is a huge premium in the price that will sooner or later come out of the market. I am bearish on oil because of fundamentals and trading a put because of the fear factor. The USO oil ETF is trading at resistance and not likely to break through, confirmed by divergences in the indicators. My target entry is above $19.75 with one week until expiry.

 

 

 

4. Hollar For A Dollar

USD/JPY

Call/Put = Call

Entry = Below 119.25

Expiry = One Week

 

 My Trading Advice

The dollar has been languishing in a range near its long term high as traders weigh global QE levels against FOMC expectations. The meeting this week is likely to strengthen the dollar but since there is no expected move to be made from them or any other central bank at this time it is unlikely the dollar will rally. Regardless, the USD/JPY pair is in the middle of its trading range and indicated at support. The pair has some room to move higher but will hit resistance at the top of the range near 121.75. Until then I am playing a call with a target entry below 119.25 and one week until expiry.

 

 

 

5. Parity May Yet Come

EUR/USD

Call/Put = Put

Entry = Above 1.0850

Expiry = One Week

 

My Trading Advice

Parity between the dollar and the euro may yet come but I am not speculating on that. I can however speculate on current trends, current support levels and the upcoming FOMC meeting. The trend is down, the pair has been bouncing off support and is set up to move down to retest it yet again. The indicators are bullish right now but come with significant divergences, technical resistance and a central bank meeting to contend with. I am bearish on the pair this week and looking for a move back down to the 1.0500 level. I’m playing a put with a target entry above 1.0850 and one week until expiry.

 

 

 

More Tips by the Geek – 04/27 – 05/04/2015 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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