Tip from the Geek – Top 5 Binary Options Trading Tips 12/02-09/2013

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

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Will Santa Rally The Markets

This week started out a little weak. Last week ended up a little weak, not exactly what I expected. At first I wasn’t sure what was going on and then I reminded myself this is an important data week. Today, flash PMI readings from around the world suggest that global manufacturing is at a 2.5 year high. Later this week we will get information from the Fed’s Beige Book, the string of labor data including the ADP private jobs reports, Challenger planned lay off’s, unemployment claims, NFP and U.S. unemployment rate. Not counting the 2nd estimate for U.S. third quarter GDP and a host of international data as well. Expectations are hopeful the economy is still strengthening and that December will be another month of gains.

 

Global trading was mixed in the early part of the Monday session. Better than expected PMI from China clashed with reforms to the Chinese IPO system to hold stock prices in check. In Europe data and earnings were also affected by concerns for the consumer. PMI readings in the EU are at a 2.5 year high as well. So far data for Black Friday sales are not quite as expected. Traffic in the brick and mortar stores was up but sales declined nearly 3% from last year. Cyber Monday and total holiday sales will be more in focus now than ever before. This year Cyber Monday sales are expected to increase more than 13% from last year. I still have faith in the consumer and think this December could be a good one. The data is still showing expansion, the more it expands the more likely it is to keep expanding provided nothing stands in the way.

 

 

 

1. U.S Markets Treading Water

S&P 500

Call/Put = Call

Entry = Below 1805

Expiration = One Week

 

My Trading Advice

The Santa Rally is now the big question on the table for traders. Will it or wont it come? I think the former. The data has been pretty good in my opinion, it shows expansion and declining unemployment. At least here in the U.S. So long as the data this week does not damage the idea that the economy is still on track the markets should keep going up. QE is still in place and that is what has really been driving the market. Whether or not you believe QE and the rising market are directly related QE at least is a signal that the economy is still in a rebuilding phase and the data shows the economy is on the rise.

 

The daily charts are a little worrisome because SPX price action is so far above the long term trend. Adding to the concern are divergences in both the MACD and stochastic. However, even with these divergences the index is still bullish and sitting above strong support. Longer term the index is bullish with strong indicators. The index may be in a shorter term consolidation but longer term is still bullish. A week like this one could provide more than one catalyst for the market. I am still bullish on the economy and the SPX and therefore trading calls with a target entry below 1805 and one week until expiry.

 

 

 

2. Why Buy Gold?

Gold

Call/Put = Put

Entry = Above $1235

Expiry = One Week

 

My Trading Advice

I can’t see any reason why you should buy gold, unless you are buying a put of course. Gold prices are falling and falling hard. The metal lost another $20 or so at the open of this week and is likely going to retest lows near to $1200 very soon. Indicators are bearish with convergences suggesting lower prices ahead. I am trading puts with a target entry above $1235 and one week until expiry.

 

 

 

3. Kuroda Moves Yen

USD/JPY

Call/Put = Call

Entry = Below 103.00

Expiry = One Week

 

My Trading Advice

Talk from Kuroda has raised speculation the BOJ could increase QE at it’s next meeting. The bank chief said once again that the bank would do whatever it took to reach inflation goals and other targets set. This means that there could be an addition to the already $70 trillion a month QE program in place today. An actual increase could help send the USD/JPY above current resistance around 103.75. Until then I am bullish on the pair and trading calls. My target entry for the week is below the 103 level with one week until expiry.

 

 

 

4. Euro Faces Resistance

EUR/USD

Call/Put = Put

Entry = Above 1.3525

Expiry = One Week

 

My Trading Advice 

The Euro is facing tough resistance. The pair has been consolidating below the 1.3625 level for over a month now since the false break out in October. The pair is now trading just under resistance with overbought technicals. I am trading a put on this pair with one week until expiry and a target entry above 1.3525.

 

 

 

5. FaceBook Face Off

FaceBook

Call/Put = Call

Entry = Below $47

Expiry = One Week

 

My Trading Advice

Facebook has been under pressure for the last 6 weeks since reaching a peak near $55. The stock is now trading near a support zone and receiving attention in the way of increased buy ratings. MACD and stochastic both show support at this level and indicate the stock may be ready to move back up to retest the most recent highs. I am trading a call on FB with a target entry below $47 and one week until expiry. I will be keeping an eye on this chart as it may provide more entries over the next few weeks.

 

 

More Tips by the Geek  –  12/02-12/09/2013 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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