Tip from the Geek – Top 5 Binary Options Trading Tips 03/03-10/2014

Russian Entry To The Market

I want to start by saying that I hope that the growing turmoil in the Ukraine is settled quickly and peacefully. That said. The Russian entry into the southern Ukraine has provided an entry to the markets. Of course, it has also had a negative impact on some trades I already have open but some things you just can’t plan for. Global indices were down sharply in early trading led by EU and other areas close to the situation. Currency and commodity markets were also impacted and could be offering up entry points as well. I hope and think that the situation will be resolved and then the war premium will come out of the markets.

 

Data out of China over the weekend was light, mixed and did not really seem to matter.  A forward looking gauge of the economy grew while a backward one revealed the same softness we have been seeing from China and elsewhere. European indices were focused on Ukraine, Crimea and Russia. In America traders had one eye on events overseas and the other on the upcoming slew of economic data. This is a big data week for the U.S. and abroad. It is the first full week of the month which means we can expect to get ADP labor change, Challenger estimated layoffs, initial claims for unemployment(weekly), Non Farm Payrolls and U.S. unemployment. Not to mention that even though earnings season is really over there are still a couple of high profile names reporting such as Costco.

 

 

 

1. S&P 500 Drops At The Open

SPX

Call/Put = Call

Entry = Below 1850

Expiration = One Week

 

 My Trading Advice

The S&P 500 made a big drop early on Monday in line with the other global indices. The growing tension in the Ukraine/Crimea is the reason. Once the situation is resolved and resolved it will be the markets will be able to focus on what is really important, economic data. As I said before this is a big big week for data and that is what will drive the market long term. Traders are looking for signs that the recent slump in activity will come to an end soon. Last week home sales and other data points suggested that the downturn may not have been as bad as feared and that the future is starting to brighten.

 

The S&P 500 is still above long term support at this time although that support is being tested. Last week the index made a new all time high with bullish indicators so a small pullback is not to be worried about. The long term trends are still up and there is as of yet no sign of an end to the bull market. The drop in index prices may seem large today but this situation will be less than a blip on the radar in no time at all. I am trading a weekly call on the S&P 500 with a target entry below 1850 and one week until expiry.

 

 

 

2. DAX Leads EU Lower

DAX

Call/Put = Call

Entry = Below 9430

Expiration = One Week

 

 My Trading Advice

The DAX lead the EU markets lower today. The index is reacting to fears driven by the Russian/Ukraine situation and not by fundamentals or technicals. This index, like the S&P, will snap back once tensions in the region begin to ease. The meeting of international leaders later this week could be the stage for such a resolution. I am trading calls on the DAX, in line with the underlying trends, with a target entry below 9430 and one week until expiry.

 

 

 

3. Safety Seekers Drive Gold Higher

Gold

Call/Put = Put

Entry = Above $1350

Expiry = One Week

 

 My Trading Advice

Gold prices really popped today as safety seekers sought this and other safe havens. The tensions in Europe are I believe going to be short term so I don’t think the premium in prices will last. Gold moved up to the $1350 level, long term resistance, on the news and hovered there all morning on Monday. I see this as a good point to get back into bearish mode on this metal. I am trading a put on gold with one week of expiry and a target entry above $1350.

 

 

 

4. Oil Pops On Disruption Fear

Oil ETF

Call/Put = Put

Entry = Above $37.50

Expiration =  One Week

 

 My Trading Advice

Oil popped today as well. Supply disruption is feared from several sectors, not just Russia. The Black Sea is only one center of oil transport that is currently under pressure. The fear caused oil prices to rise more than 2% on Monday, adding to the day’s volatility. This is another area where I think there is a near-term fear premium added in to asset prices that will come out as the week wears on. I am trading a put on the Oil ETF with a target entry above $37.50 and one week until expiry.

 

 

 

5. The Confounding Yen

USD/JPY

Call/Put = Call

Entry = Below 101.50

Expiration = One Week

 

 My Trading Advice

The yen has been confounding me. I see Abenomics and Tapering driving the two apart, with the result a much higher usd/jpy. Moves by the central banks have not sparked the rally I thought they would and not traders seeking safe haven in the yen have the pair testing support again. I am still a bull on the usd/jpy and see this as an entry point, however, if things don’t start to change soon and/or the BOJ doesn’t act then I may be forced to change my opinion and/or give up on the trade. I am trading a call with a target entry below 101.50 with one week until expiry.

 

 

More Tips by the Geek – 03/03-10/2014 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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