Tip from the Geek – Top 5 Binary Options Trading Tips 11/18-25/2013

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.

 

 

Markets Simmer

The markets are simmering on a steady stream of liquidity. The global rally gained some momentum last week and may have caught a little more over the weekend. “Sweeping” reforms in China and positive trade data in the EU helped to lift global markets. An easing of the one-child policy and financial liberalization are at the core of the reforms. China’s major indexes gained nearly 3% on the news and have raised speculation they could gain another 25% in the next 12 months. Meanwhile, trade data from the EU suggests positive gains for the month and was greeted with enthusiasm. European indices nearly a full percent.

 

For some reason there is now speculation of a taper in December. My first reaction to that was “really?”. I agree that the data has been better than expected of late but it is still a far cry from current targets set by the Fed. Not only that there has been no indication it is even on the table for December and the heir apparent Janet Yellen says she supports QE while the economic recovery is so “fragile”. We may find out a clue or two on Wednesday when the minutes from the last FOMC meeting are released.

 

This week is also a big one for data. Not only will there be FOMC minutes, the BOJ is meeting Wednesday/Thursday and there are about a dozen important data points in the U.S. alone. TIC flows, mortgage index, housing index, CPC, PPI, business invetories, jobless claims and Philly Fed the most notable. It’s also a big earnings week. There are not really any high profile names but there are over 100 important small and mid caps on the list. Home Depot and Lowes perhaps the most important. These two are an indication of spending, the consumer and housing.

 

 

 

1. U.S. Markets Making New Highs

S&P 500

Call/Put = Call

Entry = Below 1800

Expiration = One Week

 

My Trading Advice

It’s hard not to be bullish on the S&P 500 when it keeps making new highs. The index made new highs all last week and it made new highs this week right at the open. Fundamentals are unchanged, QE is still flowing so until that changes I am still bullish. There is a chance there could be a hint of QE in the minutes on Wednesday but I don’t think so. The new speculation that tapering could start in December sounds a lot like the idea it could have started in September.

 

The long term trend is up. The weekly candles are bullish, supported by rising bullish momentum and rising stochastic. The daily charts support the long term bullish trend. Momentum has turned bullish and is on the rise while stochastic is also on the rise. Long term divergences are still present but could be negated if the current rally is strong enough. I am bullish on the SPX in the near to short term with some caution. The FOMC minutes have the power to change the markets direction but until then I am trading calls with a target entry below $1800 and one week until expiry.

 

 

 

2. German Bulls

DAX

Call/Put = Call

Entry = Below 9225

Expiry = One Week

 

My Trading Advice

Positive trade balance increases were taken as a good sign by the European markets. The rise in trade along with the reforms in China bode well for this region. I am bullish on the EU and Germany in particular so trading the DAX this week. I am trading a call with an entry below 9225 with one week until expiry.

 

 

 

3. Not Quite Bullish On Gold Yet

Gold

Call/Put = Put

Entry = Above $1280

Expiration = One Week

 

My Trading Advice

I am not quite bullish on gold yet but it is getting close to my downside targets. Last week gold fell firmly below the $1300 level and is looking like it will retest previous lows around $1200. There still isn’t any active buying in the metal making it extremely susceptible to knee jerk reactions. I am trading puts on gold with a target entry above $1280 and one week until expiration.

 

 

 

4. Yearning For Yen

USD/JPY

Call/Put = Call

Entry = Below 100.25

Expiration = One Week

 

My Trading Advice

The BOJ is meeting this week and could reveal new additions to current policy. Abenomics is working for the country but not strongly enough according to some recent data. An increase to QE may be what is needed to keep the yen value lower than other major world currencies. Regardless of their decision the USD/JPY is moving higher and broken the 100 level. Indicators support higher prices with a target around the 10 4 level. I am trading calls on the pair with a target entry below 100.25 and one week until expiry.

 

 

 

5. European Recovery

EUR/USD

Call/Put = Put

Entry = Above 1.3550

Expiration = One Week

 

My Trading Advice

The European recovery is still on but not quite as good as expected. The recent rate cut by the ECB has sparked a decline in euro value that may not be over. The drop from the previous high has been quite sharp and came with a lot of negative momentum. Now the pair has bounced back up to another attractive selling level, a level coincident with the short term moving average and a Fibonacci Retracement. I am trading puts on the EUR/USD with a target entry above 1.3550 and one week until expiry. 

 

 

 

More Tips by the Geek  – 11/18-25/2013 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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