Tip from the Geek – Top 5 Binary Options Trading Tips 4/15-22/2013

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

 

Markets Drop On Data And Commodities

The global markets dropped Monday morning on weaker than expected Chinese data. Expectations were for growth of at least 8%, the 7.7% reported did not satisfy. The unexpected slowdown hit commodities the hardest, expectations for demand growth have suddenly hit the rocks. Oil dropped more than 3.5% and gold as much as 10% in the early Monday action. The fear of slowdown was widespread and carried over into stocks and currency trading.

 

Other headlines include earnings in the U.S.  The season is fully upon us again with the releases of the international and most of the regional financial institutions. So far, earnings have been good. Alcoa beat expectations and so far so have the banks. The first quarter was pretty strong in the U.S., I expect this earnings season to be strong as well. How the interplay of U.S. strength and Chinese weakness will affect the markets is still unclear but I remain bullish for now on the S&P 500.  We may be on the cusp of a top but I don’t see it yet.

 

Asia bears watching, China is questionable as always and Japan is in full battle mode over its economy. I am not too worried about China right now, the GDP figures are a rear looking and coincident with a stronger U.S. and a somewhat stabilizing EU. What is more important is the outlook for this quarter and even more important the outlook for next quarter. We are entering a time of predicted sluggishnes in the global economy and nearing the time of predicted pick up. If there is a top forming now I think it will take several months for it to unfold. This will offer some good trades for bulls and bears. Until then the data and the charts will tell all.

 

 

 

1. S&P Retreats To Support

S&P 500

Call/Put = Call

Entry = Below 1570

Expiration = End of the month

 

Why Should you Trade

Last week the S&P 500 moved very quickly, so quickly that I was not able to get into my position. I think that there may be others like me waiting to get in now. Placing a Fibonacci Retracement on the hourly charts from the low of 4/5 just below 1550 to the highs of 4/11 just under 1600 is very interesting. The 38% and 50% levels are bracketing the support line drawn from the previous all-time intraday high. This is an ideal level to get into calls for end of the month expiration. That gives the trade two weeks to play out.

 

Looking on the daily charts this move is also attractive. A retracement to the 1575 level would bring price back down to a likely support level and an area where the market could move up from. Next support is the 30 day moving average which is around 1557. More daring traders can take bearish trades until supports kicks in but I am looking to buy calls with monthly expiration and a target entry below 1570. Earnings season is just beginning and I think it will be a good one for the bulls.

 

 

 

2. Banking On The Banks

JP Morgan

Call/Put = Call

Entry = Below $49.50

Expiration = End of the week

 

Why Should you Trade

I was also unable to get into my JPM trade last week. The market moved right on by in anticipation of bank earnings. So far they are looking good and that is what I expect to see the rest of the week. Today Citigroup reported an nice earnings beat, continuing a trend started Friday with Wells Fargo and JPM. The Banking Index is looking bullish and like it will at least be retesting its recent high near $57.50. As for JPM, it is consolidating above the 30 day EMA with bullish technicals. There is resistance in the  near term around $50 and $51, about $1.00 higher than the price as of this writing. This could be a top, a break above that is needed for a longer term bullish outlook but for the week calls are looking pretty good. I am trading calls on JPM with a target entry below $49.50 and an end of the week expiration.

 

 

 

3. Euro Meets Resistance

EUR/USD

Call/Put = Put

Entry = Above 1.3000

Expiration = End of the month

 

Why Should you Trade

The Euro has met resistance. The Eur/USD pair has been trending sideways for an entire week now and  is losing whatever bullish momentum it had. The weak news from China and the lingering weakness in the greater EU region compared to a strong U.S. economy will send traders into the dollar. I am trading puts on the EUR/USD with a target entry above 1.3000 and an end of the month expiration.

 

 

 

4. Yen Correcting After Kuroda Rally

USD/JPY

Call/Put = Call

Entry = below 97.75

Expiration = End of the month

 

Why Should you Trade

The USD/JPY pair fell from the 100 level after making a near 750 pip move last week. This correction should be expected and is presenting a nice re-entry to this trade. Shinzo Abe and Haruhiko Kuroda have a long term plan so the yen’s slide is likely to be long term as well. The 100 level is only the first major resistance since Kuroda took his seat as BOJ governor. It likely wont last long, once it falls this pair could go as high as 110 or even 120 further out. I am trading calls on the USD/JPY with a target entry below 97.75 and an end of the month expiratio.

 

 

 

5. Gold Crashes! Oh No!

Gold

Call/Put = Put

Entry = above 27.50

Expiration = End of the week

 

Why Should you Trade

I usually don’t trade gold because option expiry’s are usually too short for me. Now however Anyoption is offering options on Goldcorp, a nice proxy for gold and an asset with longer term expiry’s. Gold could continue to fall this week and it will impact the value of gold companies. These companies make money selling gold and now the price is suddenly 10% less. I am trading a put on Goldcorp with an end of the week expiration if I can get in above $27.50. This level was support in early Monday trading and a potential area for selling to continue.

 

 

 

___________________________________________________________________________________________

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 AnyOption Binary Options Trading Platform.

 

 Think you know better than our experts?? Have a Second Opinion??  Post your trading advice on our Trading Tips Forum or at the bottom of the page! Join our 4/15-22/2013 trading tips live discussion only on BOTS.com new growing community.

 

*** Please read Binary Options Weekly Trading Tips guide to understand better how to use the trading tips. Start Smart with BinaryOptionsthatSuck.com.

 

 

 

VN:F [1.9.22_1171]
Rating: 0.0/10 (0 votes cast)
VN:F [1.9.22_1171]
Rating: 0 (from 0 votes)