Tip from the Geek – Top 5 Binary Options Trading Tips 04/21-28/2014

Big Week For S&P Earnings

This is going to be a big week for the S&P 500. There are hundreds of companies reporting this week in general and many of those on the S&P 500 index. Aside from the dozens of regional banks there are also high profile names like Netflix, RadioShack, AT&T, Apple, Zynga, Amazon, Jetblue, Microsoft, Starbucks, Verizon and Ford. Looking at my list now I think it will be a pivotal week in earnings for the tech and blue chip indices as well. So far earnings season has been pretty good and I expect the same this week. To date, more than 70% of companies have reported in line or better than expected with the lions share of those better than expected.

 

Economic data is rather light this week. First up was the Leading Indicators, released a few days late due to the Good Friday holiday last week.  The number was better than expected at +0.8%, economists had been expecting a gain of +0.7%. Later in the week be on the look out for housing data, both new and existing home sales as well as the mortgage index. Also on tap are Durable goods and Michigan Sentiment. Looking a little farther out to next week things will get hot again on the economic front. The first half of the week will be dominated by central banks meetings. Both the BOJ and the FOMC are meeting and releasing statements on Wednesday.  Then the second half will have the monthly reports on job creation and unemployment.

 

 

 

1. S&P 500 Bullish On Earnings

SPX

Call/Put = Call

Entry = Below 1865

Expiration = One Week

 

My Trading Advice

Earnings are going to be the big mover of the S&P 500 this week. The earnings calendar is filled with big names that are important members of the index. As I said earlier, so far this season earnings are pretty good so I am expecting similar results this week. At the same time the index is in mid-long term trend line bounce, a bounce that is being picked up by the shorter term traders along the 30 EMA. There could be a little sideways consolidating action but the trends are up and supported by data and earnings.

 

The indicators are still a little bearish after the last dip but shaping up to provide a nice signal. The MACD is about to turn bullish which will add momentum traders to the fray. At the same time the stochastic is indicating an early buy and is turning up into a stronger buy signal as I am typing this article. If you can’t tell by now, I am bullish on the S&P this week and trading a call. My target entry will be below 1865 with one week until expiry.

 

 

 

2. DAX Has No Choice

DAX

Call/Put = Call

Entry = Below 9,400

Expiry = One Week

 

My Trading Advice

The DAX and Germany have no choice but to move higher. The issues in the Ukraine have depressed stock values there and in other parts of Europe while economic data and earnings at home and abroad indicate global economic expansion. A rising tide lifts all ships and this is a good ship so I have to be bullish. I am trading a call on the index with a target entry below 9400 and one week until expiry.

 

 

 

3. Gold Sinking, Sinking

Gold

Call/Put = Call

Entry = Above $1390

Expiry = One Week

 

My Trading Advice

Economic data is weighing heavy on gold prices. The metal dropped another $6 or so in early Monday trading, falling below near term support. Even with increasing demand for physical gold due to low prices there is not much reason technical or otherwise to invest in the metal. Until those signs begin to appear I remain bearish and will trade a put this week. My target entry is above $1390 with one week until expiry.

 

 

 

4. Yen Slides Ahead Of The BOJ

USD/JPY

Call/Put = Call

Entry = Below 102.50

Expiry = One Week

 

My Trading Advice

The USD/JPY has begun to drift higher, bouncing off of the long term support and bottom of the three month trading range. This is a very similar move to what the pair did last month, just before the BOJ meeting. The BOJ meeting is coming up next week and that is what I think is moving this pair higher. I don’t expect much from the BOJ next week so this move could be capped at the top of the range near the 103.75 level. Until then I am trading a call with one week until expiry and a target entry below 102.50.

 

 

 

5. Apple Dapple!

Apple

Call/Put = Call

Entry = Below $530

Expiration = One Week

 

My Trading Advice

Apple is gearing up for earnings release after the bell on Wednesday. The company is expected to report $10.21 per share, in line with the previous quarter. The report will be heavily scrutinized and the guidance will be as important as the current report. At this time the stock is trending sideways but entering a period of bullish momentum, momentum that will help to propel the stock higher. I am bullish on Apple and trading calls this week. My target entry is below $530 with one week until expiry.

 

 

More Tips by the Geek – 04/21-28/2014 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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