Tip from the Geek – Top 5 Binary Options Trading Tips 10/28-11/04/2013

Easy to understand Binary Options Trading Advices. Try Trading on CommuniTraders!

Michael is using the Communitraders platform for all of his tips. Follow along with the Geek’s progress in the forums.

 

 

Here Comes The Fed

This week  is another much anticipated FOMC meeting. This meeting tapering will once again be in full focus. There is a mix of fear and hope that the FOMC will announce that  tapering will be pushed off until next year. The current speculation, based on a month of economic data impaired by the U.S. government shut down, has tapering starting some time next spring. While the data is not super strong it has been OK. Employment figures are coming down, jobs growth is stable and the effects of the shut down are dubious at best. Today’s (Monday) release of Industrial Production and Capacity Utilization numbers point to economic growth and jobs. Industrial Production came in at a whopping 0.6%, a full quarter point higher than the consensus estimates. At the same time Capacity Utilization rose to its highest level since 2008. I suspect that the data we get over the next two weeks, even though it may be skewed, will be better than expected. On tap this week; CPI, FOMC, Retail Sales, PPI, ADP, Challenger, Jobless Claims, PMI, Auto/Truck Sales and Consumer Confidence. The NFP and Unemployment Figures we would normally expect this week have bee push out until next week, when we will also get the first estimate for 3rd Quarter GDP.

 

Earnings will also be in focus. Asian stocks led in the Monday session, driven higher by the U.S. rally from Friday. Earnings in this sector are stable; Japan is seeing some positive effects from Abenomics. European stocks drifted lower at the first of the week. Profit taking, especially in the auto sector was a primary cause along with some other high profile near-misses. In the U.S. the earnings picture is positive but still a variable from stock to stock. For every handful companies that meet or beat expectations and/or raise guidance there is a high profile name that doesn’t. However, the trends are still up and the rally is still on, for now.

 

 

 

1. S&P 500 Makes New Highs, Again

S&P 500

Call/Put = Call

Entry = Below 1760

Expiration = Week

 

My Trading Advice

Over the past few weeks I have been using one month expiry because of the uncertainty in near term direction, the shut down, the data and the upcoming FOMC meeting. This week I have shortened it to one week because the major hurdle (FOMC) is passing. I am bullish on the S&P, the data is OK, the earnings are OK and the Fed is likely not to begin the taper this month. While liquidity is pumping in the markets will rise. There is some danger of a correction at this time but the technicals support higher prices.

 

The long term chart of weekly prices is currently showing a buy on both the stochastic and the MACD. Divergences are present but for now the longer term up trend is pushing higher. On the daily charts the index is above support with no resistance ahead except for market sentiment and the Fed. On the daily charts the index has broken above an ascending wedge pattern with bullish technicals. Adding Bollinger Bands to the analysis the index is trending up with some more room to go higher. I am trading a call on the SPX with a weekly expiry and target entry below 1760. Waiting until after the FOMC announcement on Wednesday may be a good idea but could also leave this trade untriggered.

 

 

 

2. Gold…Fool’s Gold

Gold

Call/Put = Put

Entry = Above $1350

Expiration = One Week

 

My Trading Advice

Gold prices are inflated on the possibility and expectation that the FOMC will not taper until next year. At the current high prices gold is looking like an attractive sell. The metal has not been able to break above long term resistance and has stalled out around the $1350 level. This is a classic case of buy the expectations and sell the news. Even if the FOMC were to reveal that tapering would not come until March it would only meet the already inflated expectations, not likely enough of a catalyst for gold buyers to step in. I am trading a put on Gold with one week until expiry and a target entry above $1350.

 

 

 

3. Apple Earnings

Apple

Call/Put = Call

Entry = Below $530

Expiration = One Week

 

My Trading Advice

Apple reports earnings today (probably yesterday when y’all read this) and I expect good things. The iPhone 5 launch and new iPad models being two major reasons. Current earnings could be better than expected but it will be the future guidance that moves this stock. I am bullish on Apple going into the holidays and am playing call this week. I am using one week of expiration and a target entry below $530.

 

 

 

4. Bullish On The Dollar

USD/JPY

Call/Put = Call

Entry = Below 98

Expiration = One Week

 

My Trading Advice

I am bullish on the dollar. I can’t help it, the U.S. is growing regardless of near term fears or fluctuations. I expect this pair to take off following the FOMC announcement and move back up toward the top of its current range near 100. This is not even taking the BOJ or Abenomics into consideration. I am trading a one week call with a target entry below 98. This trade is in line with my previous tips for one month calls at or near the 98 level.

 

 

 

5. Bullish On The Dollar

EUR/USD

Call/Put = Put

Entry = Above 1.3800

Expiration = One Week

 

My Trading Advice

This pair is equally affected by the FOMC meeting. The pair has been moving up strongly on the expectation of the FOMC taper, reaching an extreme high level in relation to longer term trading ranges. Once the announcement is past I expect this pair to begin selling off. I am trading a one week put with a target entry above 1.3800. I also have several longer term trades on this pair in play as well.

 

 

More Tips by the Geek  – 10/28-11/04/2013 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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