Tip from the Geek – Top 5 Binary Options Trading Tips 12/23-30/2013

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.

 

 

Merry Christmas Mr. Santa Claus Rally

The Santa Rally is in full swing. All it took was for the FOMC to put its stamp of approval on the U.S. economy. This was done by initiating the taper. Even though I did not think it would happen this go round it did and the market was more than ready for it. The S&P, Dow and Nasdaq rallied to new highs on the news and other markets were affected as well. Gold sank to to new lows and the USD/JPY broke above resistance. Adding to the euphoria was a much better than expected final revision to 3rd quarter GDP. 4.1% growth is about double what most people were actually expecting. Now 4th quarter estimates must be increased. Many believed that the 4th quarter would be flat from the 3rd quarter, if that is true the higher 3rd quarter means a higher 4th quarter. Further, other economic data has been coming in better than expected,data that is used to determined GDP.

 

Christmas week is usually marked by low volume which can lead to volatile trading. Because of this I am choosing to make most of my trades this week with one month expiry. This should allow the market to move past the holiday, get into the New Year and move higher in line with the longer term trend. Also, because it is Christmas week I will not be doing any more trading than the tips. Its the Holiday! Don’t sit in front of your trading station, spend time with the family, buy some presents, drink some egg nog and have a good time! I know I will. I will also be keeping an eye on things of course, there will be a few economic releases this week. Early Monday morning consumer sentiment was released at a five month high and helped to boost equity prices. Later in the week jobless claims will probably be the most important release of the week. Be sure to check out Bogdan’s Top Five economic releases.

 

 

 

1. Santa Rally On The S&P 500

S&P 500

Call/Put = Call

Entry = Below 1825

Expiration = One Month

 

My Trading Advice

The S&P hit another record high at the open of the week. Elevated volume over the past few days as well as other aspects of the technical picture lead me to believe it will continue to hit new highs over the near to short term at least. The FOMC announcement of the taper last week coincided with a strong bounce from the short term 30 day EMA, a sign of strongly bullish sentiment in the market. The taper has been long awaited and was obviously priced into the market long ago. The long term and short term analysis are both bullish. The long term charts show an index in an uptrend and moving up from long term support with bullish indicators. The short term charts show the same, an index in an uptrend with bullish indicators.

 

There are some hurdles moving forward into next year. The start of Obamacare may have a debilitating affect on the U.S. economy. As families shift from spending their money on consumer goods to health insurance it could have a big impact on spending. However, until then the trend remains up and I am bullish going into the first of the year. I am trading calls on the S&P with a target entry below 1825 and one month until expiry. This should give the index time to move through the holiday season, get into the new year and expire before any data based on 2014 information gets released.

 

 

 

2. I am still partial to Deutschland

DAX

Call/Put = Call

Entry = Below 9450

Expiration = One Month

 

My Trading Advice

I am still partial to Germany when it comes to trading EU indices. This is not just because I lived in Germany as a kid and consider it my second country. Germany is the strongest country in the EU and the one best positioned to benefit from the stabilizing and growing world economy. European data, Germany in particular, is still showing growth and should continue to improve into the new year. I am trading calls on the DAX with one month of expiry for the same reasons mentioned for my S&P trade. I am targeting entry below 9450.

 

 

 

3. Gold Sinking Fast

Gold

Call/Put = Put

Entry = Above $1200

Expiration = One Week

 

My Trading Advice

Gold is sinking and sinking fast. Ever since the Fed announced the taper the dollar has been gaining ground and pushing gold to make new lows. Monday morning trading had the metal below $1200 off and on but I don’t think this level will hold for long. I am looking for gold to start making a bottom soon but don’t think this is it quite yet. There could be one last mass sell off as investors who have been holding on until now finally get out and put their money somewhere else. I am trading puts on gold with a target entry above $1200 and one week until expiry.

 

 

 

4. Apple Gets A Bite Out Of China

Apple

Call/Put = Call

Entry = Below $565

Expiry = One Month

 

My Trading Advice

Apple announced Monday morning that it had finalized a deal with China Mobile to offer iPhones in China. This opens the country up to the tech giant and provides a potential of 750 million new customers. The downside is that there is not much infrastructure in China for 3G and 4G networks so Apple will also have to make a sizable investment in the country, good thing it has so much cash on hand. I am bullish on Apple for this and many other reasons. I am trading calls with a target entry below $565 and one month until expiry.

 

 

 

5. Yen Getting Weaker

USD/JPY

Call/Put = Call

Entry = Below 104

Expiry = One Month

 

My Trading Advice

The yen is gearing up for another move higher. Even though the BOJ did not increase QE this month the FOMC reduced its QE which will help push the USD/JPY rate higher, at least in the short term. At this time the pair is sitting on long term support with bullish indicators. I am trading calls on the pair with a target entry below 104 with one month until expiry.

 

 

More Tips by the Geek – 12/23-30/2013 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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