Tip from the Geek – Top 5 Binary Options Trading Tips 02/24-03/02/2014

The S&P 500 Makes A New High

The SPX made a new high and turned positive for the year as I was preparing this weeks tips. Once again the market has made a strong move in tandem with my writing, making this weeks trade on the SPX a profitable one within minutes of placing the order. What caused the move? Long term bullish trends of improving economic data, global support from central bankers and the hope of an increase in activity as the year progresses. The marekt correction of January 2014 is over. This does not mean we should not be on the lookout for other possible signs of reversal but until they appear on the charts I expect to see the international stock indices edge higher.

 

Earnings season is all but over so there is not much to worry about from this direction now. The past quarter was good, earnings were robust in terms of the expectations, it’s the current quarter that hurt  equity prices last month. Expectations for next earnings season are depressed and that, in part, caused the correction. I think now it is time to start looking past next earnings seasons expected results and more on the next quarter. What I mean is, how is the next quarter going to be? Consensus estimates have the second quarter GDP increasing from the first which should help to keep equity prices on the rise. The caveat is that winter weather may have impacted when the up tick in activity will occur and the fact that jobs creation has been very weak over tha past two months.

 

 

 

1. S&P 500 Makes A New High

SPX

Call/Put = Call

Entry = Below 1845

Expiry = One Week

 

My trading advice

The SPX is moving up from the long term trend line and making a new all-time high. At this time it is prudent to trade only trend following positions until the market gives a sign the current rally has reached the near term peak. The indicators I use; MACD, stochastic, 30 day EMA, 150 day ema and support/resistance lines are all in agreement, the market is in rally mode. This is true for the shorter term daily charts and the longer term weekly charts. This is what I like to call a convergence of indicators. The more indicators that agree on a movement the more likley and the stronger that movement is going to be.

 

Things to watch out for in the near term are data. Earnings season is basically over and there are no scheduled central bank meetings for at a couple of weeks. The next FOMC meeting is scheduled for March 18-19 with an ECB the preceding week and a BOJ meeting the concurrent week. Between then and now there will be a lot of data to process. This week aside from unemployment claims there are several data points for housing and the 2nd estimate for GDP. Next week will be the monthly release of ADP, Challenger, NFP and US Unemployment rates. This week I am trading a call with a one week expiry and an entry below 1845.

 

 

 

2. Gold Moves Higher

Gold

Call/Put = Call

Entry = Below $1330

Expiry = One Week

 

My trading advice

Gold prices edged higher at the start of the week. Gold bulls are trying to puch the metal higher on long term expectations but I think it is still too early to take a strong bullish posisiton in gold. However, until the buying opportunity I am looking for comes the metal has a little upside left in the near term. I am trading a one week call on gold with a target entry below $1330. My upside target for resistance is now $1350.

 

 

 

3. Oil Prices Hold Highs

Oil ETF

Call/Put = Call

Entry = Below $36.50

Expiry = One Week

 

My trading advice

Oil prices and other hydrocarbon fuels are at or near long term high levels. Oil prices have moderated some on emerging market expectations but the trend is still up. Supply concerns, cold weather, low levels in storage and geopolitical trouble are all supporting the high prices. I am trading calls again this week with an entry below $36.50 and one week until expiry.

 

 

 

4. The Simmering Yen

USD/JPY

Call/Put = Call

Entry = Below 102.50

Expiry = One Week

 

My trading advice

The USD/JPY is simmering just above long term support. Recent moves by both the BOJ and FOMC have this pair on the edge of a major move higher by my assessment. The indicators are firing a strong buy here as well and it will only take a catalyst to start the move. Economic data could do it, or simply a growing number of traders with a similar view as mine. I am trading calls with one week of expiry and a target entry below 102.50

 

 

 

5. Still Bullish On The Banks

JPM

Call/Put = Call

Entry = Below $57.75

Expiry = One Week

 

My trading advice

I am still bullish on the banks. They are in great position to reap the benefits of an improving economy and only need to see some evidence of that to move higher. The banking index is building support and looking bullish at the same time I am seeing the same activity in JPM. I took the early signal last week and may not profit from it but I am sticking by my analysis and making a follow up trade. I want to point out that it is very important to not reverse your analysis just because one trade doesn’t work. I make a lot of money with my follow up trades.

 

 

More Tips by the Geek – 02/24-03/02/2014 Trading Tips On Forum.

___________________________________________________________________________________________

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.

 

Think you know better than our experts?? Have a Second Opinion??  Post your trading advice on our Trading Tips Forum or at the bottom of the page! Join CommuniTraders and Start Trading,  only on BOTS.com new growing community.

 

 

VN:F [1.9.22_1171]
Rating: 0.0/10 (0 votes cast)
VN:F [1.9.22_1171]
Rating: 0 (from 0 votes)