Tip from the Geek – Top 5 Binary Options Trading Signals 05/12-19/2014
The Bulls Are Back (!)
There is a lot going on in the world today but regardless, the bulls are back. The Monday morning opening of the US markets saw a sharp and vigorous move higher. The move was led in part by the Dow, setting new all-time highs, at least on an intraday basis. The S&P also surged higher, moving into what I can call potential new all time closing high levels. What is the reason? Because the underlying fundamentals of the market are still good. The economic and earnings trends are still positive and near term fears are falling to the wayside. Last Friday I was a little worried that the markets would reverse, that resistance would overcome bullishness, that the Ukrainian vote could spark all out fighting and that the rally could be over. As the day wore on and the markets held their ground I grew more and more confident that the bulls were still strong and Monday morning I was proven right.
This week will be full of activity. There is a lot of US and international data to be released and at least one key speech from an ECB member. There are also still quite a few earnings reports to be released but the season for that is primarily past us. In terms of economics we have retail sales, import/export prices, CPI, PPI, jobless claims, Philly Fed, housing starts and building permits among other important data points. The earnings front includes several hundred reports dominated by retailers, fast food and small to mid cap tech and pharma. Politically there is still the Ukraine to worry about but it seems as if it may be waning in importance. The vote over the weekend was a big win for the pro-Russian separatists, suggesting violence could escalate again if demand for self rule is not met, and yet the EU indices are also marching higher.
1. The Fight Is On
SPX
Call/Put = Call
Entry = Below 1885
Expiry = One Week
My Trading Advice
The SPX surged at the Monday opening of trade. The index moved strongly higher to test the previous all time closing high set just last month. The thing to keep in mind is that, like the Dow last Friday, this is a potential new closing high, not a new all time high. The index still faces resistance just above the present levels that needs to be broken. On a fundamental level the index is being supported by the rising tide of increased employment, positive economic trends and expectations of earnings growth (not a lot of growth but some growth). On a technical basis things are also looking good for the bulls as well.
The index is bouncing off the long term trend line, a bounce that in the past has produced 150-250 points of movement for this index. At the same time the indicators are confirming a trend following buy signal. The MACD is turning positive and the stochastic is making a bullish crossover. The only thing holding the index back is said resistance. Which will be stronger, the long term trends, long term secular trends I might add, or near term bearishness? I am voting on the bulls, trading a call with one week until expiry and a target entry below 1885.
2. The Techs Will Bounce Back
Nasdaq 100
Call/Put = Call
Entry = Below 3590
Expiration = One Month
My Trading Advice
The technicals say it all for the tech stocks. They have been hit hard but are moving up from support. This support is confirmed by the indicators and price action. At the same time the indicators are also showing the index moving higher, a move not unexpected in light of the surge in other indices and new highs set on Monday mornings. I am trading a one month call on the Nasdaq 100 with a target entry below 3590.
3. Germany Leads The Way
Xetra DAX
Call/Put = Call
Entry = Below 9675
Expiration = One Week
My Trading Advice
You can’t keep a good market down. Isn’t that what I have been saying about Germany and the DAX. The global economic trends are OK, international business is OK, Germany and the EU face hurdles but who doesn’t. The thing is, the DAX will power higher because things are OK and getting a little better every day. Even the Ukrainian situation isn’t holding it back. You’d think that with all that has already happened the DAX would have tanked after the vote on Sunday but it’s not. The DAX is also pushing news highs so I am still bullish. I am trading a call on the DAX with one week until expiry and a target entry below 9675.
4. Flight To Safety?
USD/JPY
Call/Put = Call
Entry = Below 102
Expiration = One Month
My Trading Advice
The so called flight to safety has the USD/JPY down near long term support. The pair has been hanging around these levels for over a month now, churning on BOJ expectations, Abenomics, the FOMC and more importantly in the nearer terms on Putin/Ukraine flight to safety. I still believe in the long term fundamentals driving this trade and that the pair is destined to move higher but when that will happen is still in question. For now, the index is trapped in a range and indicated higher. I am trading a call on the pair with a target entry below 102 and one month until expiry to give time for near terms fear to leave the market.
5. Gold Creeps Up To Resistance
Gold
Call/Put = Put
Entry = Above $1300
Expiration = One Week
My Trading Advice
Gold prices crept higher on Monday morning as Ukraine speculation added a fear factor to trading. Keep in mind that this happens every time Ukraine fear pops up and every time it goes away the price falls back $20 or so. I am trading a put on gold this week with a target entry above $1300 and one week until expiry.
More Tips by the Geek – 05/12-19/2014 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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