Tip from the Geek – Top 5 Binary Options Trading Tips 05/05-12/2014

The Weekly Geek Report: Market Hurdles

The markets face a major hurdle this week and into the near future; The Ukraine. The Ukrainian situation is spiraling out of control with escalating violence as Kiev struggles to regain control of its country. The Russian incursion to eastern Ukraine, the fires, killings and other violence in and around Odessa have the potential to be major market movers, just like last week. Last week the markets traded in line with the prevailing trend of improving business conditions and improving economic data, right up to the time that pro-Russian separatists shot down a couple of Ukrainian helicopters. Then the US equities markets tanked and the price of gold shot skyward.

 

This week could be similar in that underlying trends get trumped by the near term news. There is no end in sight for the Ukraine but earnings and economics are getting better every week. The NFP and Unemployment data are only the latest signs of life in the economy. The NFP was much much better than expected as well as the drop in unemployment. There is some concern over the participation rate but I think it is misplaced. Not one person has brought up the question of demographics, or of the self employed. Demographically the largest segment of American society, the Baby Boomers, are in retirement phase while at the same time the next largest segment of the population, the echo boomers and millenials, are coming of age. Further, a large number of the echo boomers, and even some gen x-er’s like myself, are turning to self employment. We can start talking about the participation rate after we establish how those two factors are impacting unemployment.

 

 

 

1. The Odessa Entry

SPX

Call/Put = Call

Entry = Below 1870

Expiry = One Month

 

My Trading Advice

The SPX is trending up but capped by resistance. The index is winding up inside a triangle formation driven higher by economics and earnings yet held in check, at least in the near term, by the Russian/Ukraine situation. Each time the market tries to tackle the previous all time high it seems as if something new happens in terms of the aforesaid situation that sends stocks back down to support. So far this week has seen some more decent earnings and good economic data. ISM services was ahead of expectations.

 

Data is rather light this week. There is the mortgage index and data on labor costs, wholesale inventories, mortgage data and the weekly release of employment claims. Earnings will still be in focus this week as well with close to one thousand reports on the schedule. The SPX itself is being squeezed between the resistance of the current all time high and the rising long term up trend line. So far resistance has kept the index in check but the underlying fundamental will over power the short term news in the end. I am trading a call on the SPX with a target entry below 1870. I am choosing a one month expiry because of the chance of volatility linked to fears based on the Ukraine.

 

 

 

2. DAX Off Tracks

DAX

Call/Put = Call

Entry = Below 9430

Expiry = One Month

 

My Trading Advice

The Ukraine situation is hurting the DAX and other EU based indices but like with the SPX this too shall pass. I hope. Until then I will be trading along with the fundamentals and giving my trade enough time for political trouble and violence in eastern Europe to subside. I am trading a call on the DAX this week with a one month expiry and a target entry below 9430.

 

 

 

3. Range Bound Yen

USD/JPY

Call/Put = Call

Entry = Below 102

Expiry = One week

 

My Trading Advice

The usd/jpy remains range bound. The pair appears to be pegged between 101.75 and 103.75 on Abenomics and the Fed Taper. Japan is still printing money with an proposed end in about 6 months, just in time for the FOMC taper to end. This could leave the pair at or near the current valuation if no other moves are made by either bank. However, the BOJ is expected to need to make some policy adjustment soon as the April tax hike begins to show up in the data. At this time the pair is at the bottom of the range with incredibly neutral indicators. I am banking at least a bounce if not a move to the top of the range. I am trading a call on the pair with a target entry below 102 and a one week expiry.

 

 

 

4. Trading A Gold Putin

Gold

Call/Put = Put

Entry = Above $1315

Expiration= One Month

 

My Trading Advice

Once again I suspect that Vladimir Putin has interests in the US and international markets. It seems as if he has been pulling the strings, sending gold prices up at whim (not to make light of the what’s going on over there). The escalation of violence on Friday and over the weekend have gold prices back up near resistance around $1315 but I don’t think for long, there is still no fundamental reason to buy gold. I am trading a put on gold but giving a month until expiry to account for possible near term volatility. My target entry is above $1315.

 

 

 

5. Bobbing For Apple

Apple

Call/Put = Call

Entry = Below $595

Expiration= One Week

 

My Trading Advice

Apple has been on fire ever since announcing earnings and the 7-for-1 stock split. Apple gapped up above long term resistance and is now trading up against the $600 level. Early Monday indicated a lower opening but that low opening is/was a good place for bullish entry. The stock should remain a hot item at least until the early part of June, when the split is scheduled. Until then I am trading a call on Apple with a target entry below $595 and one week until expiry.

 

 

More Tips by the Geek – 05/05-12/2014 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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