Tip from the Geek – Top 5 Binary Options Trading Tips 03/17-23/2014

Geek Says: Put-in The Market!

Vladimir Putin has once again caused the market to tumble. Just like two weeks ago, I am viewing this is a buying opportunity in a long term uptrend and not a market reversal. Of course the situation is serious, there is also a real factor of violence erupting but for now it seems as if things are at a stalemate. The Sunday referendum in Crimea went about as expected. The national community, including the government of the Ukraine, did not acknowledge it. The vote itself was a sham, there was no possible way for Crimeans to vote to remain in the Ukraine from what I understand, and today the major world powers are waving their fingers waiting to see what happens next. The west can’t sanction Russia too heavily because of the EU’s reliance on Russia oil and gas, what the Russians (Putin and the Government) will or won’t do is up in the air as always.

 

The markets seemed to take the referendum and stalemate in stride. Early Monday trading was strongly positive and boosted by U.S. economic data. European data, CPI, suggests that inflation is declining and is a sign that easy money will continue in that region. In the U.S. Capacity Utilization and Industrial Production were both up stronger than expected and point to a rebound in the second quarter. This is yet another piece of the economic puzzle that has begun to point to such a pick up. The last two weeks of employment data have been positive, the NFP was great and now manufacturing data has begun to look the same. This week is still full of data though so be on the lookout. There is housing data in the form of mortgage index, housing index, TIC Flows, jobless claims and more. And that is not even counting the FOMC meeting and press conference Wednesday. PS. For those who care, Happy St. Patrick’s Day and Cheers for Beers!

 

 

 

1. S&P 500 Bullish Bullish Bullish

S&P 500

Call/Put = Call

Entry = Below 1850

Expiration = One week

 

My Trading Advice

The international stock indices, including the SPX, sold off pretty hard last week. The thing to keep in mind is that even though the Crimean situation is serious, it is a short term event. It will not spark an international war or world war III. It sucks, it sucks for the Crimean people and the people of the Ukraine but it is a short term event in the perspective of stock trading. Looking at the daily charts we can see that the SPX barely broke first support and then when it did it was halted by the short term 30 day EMA. This, to me, is a sign that even the short term traders who are the most impressionable do not see this as a major bearish event.

 

Early Monday trading had S&P 500 futures up more than 12 points and back above the support/resistance of the previous all-time high. The index currently appears to be making a moving average bounce in a long term up trend, an up trend that is supported by long term economic growth. I know there are other reasons to be skeptical off the bull market but for now I am still in the camp believing that we are in a secular bull market. I am using the current lows as an entry point for calls with one week of expiry, my target entry is below 1850.

 

 

 

2. DAX Snapping Back Too

DAX

Call/Put = Call

Entry = Below 9150

Expiration = One Week

 

My Trading Advice

The DAX, and Germany, are the pillar of the EU and the place I like to stick my money when trading that region. The DAX sold off on Crimea the same as the SPX and is now looking just as good as the U.S. index in terms of a near to short term snap back rally. Aside from economic data and other events, the Crimea situation may cool to a low simmer until the next round of official elections scheduled some weeks away. Until then I expect to see the DAX move higher to retest recent highs. I am trading a call on the DAX with one week until expiry and a target entry below 9150.

 

 

 

3. Gold, What’s The Deal?

Gold

Call/Put = Put

Entry = Above $1380

Expiration = One Month

 

My Trading Advice

What is the deal with gold? At first the rally was driven by uncertain economics taking prices up to the $1300-$1325 levels. Then, when it looked like the economy was about to turn again the Crimean situation popped up and sent gold prices back up to resistance and even higher. Now the price of gold is super elevated and near long term highs around $1380. There may still be near term buying to take the price up to test $1400 but I am not sure enough about that to make a trade on it. I think gold is at a long term resistance, the economy is looking OK, Tapering is still ongoing so gold should start to sink again within the next month. I am trading a put on gold with a one month expiry and a target entry above $1380.

 

 

 

4. Saftey Schmafety

USD/JPY

Call/Put = Call

Entry = Below $102

Expiration = One Week

 

My Trading Advice

The Crimean situation sparked a flight to safety that saw equity indices plummet and safe havens such as gold and the yen spike. For a time it looked like the event would put an end to the Abe call on the USD/JPY but no, only another entry point. The flight to safety was halted at long term support, reconfirming that support along with my indicators, MACD and stochastic. Bears are trying to keep this pair down but long term trends and central bank policies are pushing it higher. I am trading a call on this pair with a target entry below $102 with one week until expiry. I expect that Wednesday’s FOMC statements and policy will have a big affect here.

 

 

 

5. Oil Bubbling On Crimea?

Oil ETF

Call/Put = Call

Entry = below $35.36

Expiry = One week

 

My Trading Advice

Oil prices are at near term lows and sitting on top of support. The indicators are rolling over and with the Crimean situation at an impasse for now I see oil prices rising into the near future. I am trading a call on this pair with a target entry below $35.30 and one week until expiry.

 

 

More Tips by the Geek – 03/17-24/2014 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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