Tip from the Geek – Top 5 Binary Options Trading Signals 06/09-16/2014

And They’re Off, Sort Of

The bulls took the markets to new highs today but not with much force. Monday morning trading started without much bang either, odd considering the late week rally we experienced into the close of trading on Friday. Economic data released throughout the week and for some reason comments from David Tepper allowed the markets to break out to new highs. Weekly jobless claims along with the monthly jobs report showed that long term unemployment remains on a down trend and that jobs creation is still strong if not robust. This week data is light and mostly on Thursday and Friday. In the US monthly retail sales data, import/export prices, business inventory, PPI and Michigan Sentiment are the major releases to watch for along with the weekly jobless claims figures.

 

Around the wold, especially in the Asian sector, things are also looking better. Data from China and Japan was met with cheer allowing those markets to approach 3 year highs. In China the trade surplus widened by 7% year to date on an increase in exports. In Japan 1st quarter GDP was revised up by nearly a full percent to 6.7% from the previous 5.9%. In focus this week will be the BOJ. The there is of course some speculation that the bank will increase QE but I think that highly unlikely at this time. The data does not support the move, it does support the BOJ’s previous comments about not needing to act at this time.

 

 

 

1. S&P 500 Advances Toward 2000

SPX

Call/Put = Call

Entry = Below 1950

Expiration = One Week

 

My Trading Advice

As a technician I am pretty bullish on the market right now, in particular the S&P 500. The index is exhibiting classic rally behavior supported by indicators, candle stick action and economic data. The index broke to a new high last week with a strong bounce from the 30 day moving average. Today, Monday, the index continued that bounce crossing the round number resistance of 1950. MACD is on the rise and stochastic is topped out in the near and short terms. The index is also above long supports such as the trend line and 150 moving average. With this evidence in hand it is hard to take a bearish perspective at this time.

 

On an economic basis, even if you only believe that things are still “as is”, then you have to believe that the economy is slowly growing. That is what “as is” has meant for almost two years. Long term unemployment is at 7 year lows, jobless claims are at 7 year lows and trending lower, jobs creation is steady over the past 5 months at or above the 200K level, housing sales are up and expected to trend higher and I could go on and on. I am trading the break out this week with a call, target entry below 1950 with one week until expiry.

 

 

 

2. Rusty, Rusty Gold

Gold

Call/Put = Put

Entry = Above $1250

Expiration = One Week

 

My Trading Advice

Gold is trending lower, and in pursuit of retesting the lows of last year in my opinion. The small snap back to levels above $1250 is only a new opportunity for me to get into a bearish position. There is just no reason to think anyone is getting into gold so why would it go up? Consumer demand is weak, the Ukraine situation is very quiet, economics are good and the equity markets are rising. I am trading a put on gold with a target entry above $1250 and one week until expiry.

 

 

 

3. Oil Bubbles

Oil/USO

Call/Put = Call

Entry = Below $38

Expiration = One Week

 

My Trading Advice

My play on oil barely made it in the money this morning but it did. The bounce from the moving average I predicted happened, just not quite in the way expected. This week a similar opportunity is presenting itself with similar reasons. Economic data from the US helped to support oil prices going into the weekend but it was the data from China and Japan that helped to move the price up off of the moving average. Indications are still good for the bullish move that I see in the offing. I am trading another call on the USO with a target entry below $38 and one week until expiry.

 

 

 

4. BOJ Wont Do Squat

USD/JPY

Call/Put = Put

Entry = Above 102.50

Expiration = One Week

 

My Trading Advice

The BOJ is in focus this week as investors and speculator weight the possibilities of what they will do. In preparation for the event the price of the USD/JPY has been bid up to the mid point of a 6 month trading range providing an entry for savvy traders, but which entry? Since I do not think that the BOJ will act to weaken the yen I see the pair returning to support along the bottom of the range. I am trading a put with one week of expiry and a target entry above $102.50.

 

 

 

5. A Cut Of Apple Still Tastes Sweet?

Apple

Call/Put = Put

Entry = Above $92.50

Expiration = One Week

 

My Trading Advice

Apple’s 7 for 1 stock split took effect this week with the new shares opening around the $92.50 level. I am trading this simply on the expectation that sellers will be dumping some shares this week. I am bullish on Apple long term but there will very likely be a correction/consolidation in the stock now that there are 7 times as many of them. I am trading a put on Apple with one week until expiry and with a target entry above $92.50.

 

 

 

 More Tips by the Geek – 06/09-16/2014 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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