Tip from the Geek 12/29–01/05/2014: Happy New Year’s Highs!

Top 5 Weekly Binary Options Trading Signals by the Geek

Once again my friends we come to the end of a trading year. And once again the market is making new highs. The past year has been good to us, and to me, with tradable movements in equities, currencies and commodities but what will the next year bring? More of the same, in fact, I think that 2015 will be even better than 2014. Speaking of the US, the economic trends are up, gaining momentum and optimism/outlook for next year is very positive. All you have to do is look to last week’s read on GDP to see that momentum is in the economy. Not only has 3rd quarter GDP been revised higher, twice, the 2nd quarter was also revised higher as well as the 1st. We can also see momentum in the leading indicators, which have also been coming in stronger than expected alongside of upward revisions. With all this underlying strength I am really expecting to see some kind of economic boom in the next 6-12 months.

 

Trading could be a little wonky in the US market this week. It is the 2nd week of a long holiday season and one in which 1) trading is shortened due to market closure and 2) volumes are usually light and erratic. There isn’t much in the way of economic data, a few releases but nothing major, and only 3 earnings reports. Global news could play a part in where the market goes so the ever ongoing political/bail-out issues in Greece, Russia and ECB expectations will be important to watch. Going into next year? I am definitely a bull and will be looking to buy equities on the dips. I expect to see further QE from the ECB and the BOJ. I think that the FOMC will raise interest rates before June, or June at the latest, and the bottom in gold is in.

 

 

 

1. S&P 500, Not So Much

Apple

Call/Put = Call

Entry = Below $114.50

Expiry = One Week

 

My Trading Advice

I usually always trade the S&P 500 every week but this week I think it wise to take a break. The index is floating at new highs and looking bullish long term, while also looking ripe for a test of support. All during a time of year well known for light trading volume and potentially erratic market movement so this week I am taking a break from the SPX, giving the market a chance to move past 2014 and into the New Year. This decision was made even easier as I looked through my other favorite assets and found plenty of tradable opportunities.

 

This week’s top pick is Apple. The company is riding a wave of positive sentiment following a year of new releases, stock splitting and improving profits. The stock is currently trading above support with indicators suggesting that a retest of resistance near the all-time split adjusted high. Adding to this is underlying strength in the economy and the consumer that I think will result in huge profits for the company. I am trading a call on Apple this week with a target entry below $114.50 and one week until expiry.

 

 

 

2. I’m Still Wary Of Oil

USO/Oil ETF

Call/Put = Put

Entry = Above $20.75

Expiration = One Week

 

My Trading Advice

A new round of violence in Libya is helping to support prices near term but the long term trend in oil is still down. There is really no underlying sign of support for prices as global supply is still rising faster than demand. WTI and Brent have both been consolidating and appear set to make another big move lower. I am trading a put on the USO/Oil tracking ETF with a target entry above $20.75 and one week until expiry.

 

 

 

3. Bobbing For Gold

Gold

Call/Put = Call

Entry = Below $1295

Expiry = one Month

 

My Trading Advice

I am going to say it, I officially think that gold prices have bottomed. I still think that there could be some volatility, a possible testing of support, but longer term the price of gold is going up. Long term economic trends are unmistakable…the US economy is strengthening, it is gaining momentum, the dollar is strengthening and interest rates are going to rise. This means that gold, the traditional hedge against inflation, is going to go up as well. I’m not making a near term play but instead doubling up on last week’s long term call. I am trading a call this week with a one month expiry and target entry below $1295.

 

 

 

4. Don’t Buck The Dollar

USD/JPY

Call/Put = Call

Entry = Below 120.50

Expiry = One Week

 

My Trading Advice

The dollar is gaining strength without any reason to see it stopping. There may be consolidation as each new bit of information gets digested but with FOMC and BOJ expectations diverging with a widening gap in policy there is nowhere for the USD/JPY to go but up. The pair is now consolidating above 120, and gearing up to retest the long term high near 121.50 with rapidly improving indicators. I am trading a call on the pair this week, with a target entry as near to 120.50 as I can get and one week until expiry.

 

 

 

5. For Real, Don’t Buck The Dollar

EUR/USD

Call/Put = Put

Entry = Above 1.22

Expiry = One Week

 

My Trading Advice

The euro is trading at new long term lows following last weeks surprisingly strong US GDP read. The rising tide of US economic strength and dollar value is swamping the euro, adding pressure to the ECB to act in order to stimulate and support their own economy. This move, and expectations of a move, a pushing the pair lower. I am trading a put on the pair with a target entry above 1.22 and one week until expiry.

 

 

 More Tips by the Geek – 12/29-01/05/2014 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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