Tip from the Geek – Top 5 Binary Options Trading Tips 4/22-29/2013
Easy to understand Binary Options Trading Advices. Try Trading on CommuniTraders!
Anticipation and Expectations Could Drive The Markets This Week
We have a big week ahead of us. The economic calendar is full of global events. All are important, some have market moving potential. To recap briefly recent events we are coming off a round of weaker than expected data. Not bad data, just weaker than expected. This data brought some volatility back to the markets and clouded the waters, making it hard to see the big picture. The biggest mover economically speaking will be the U.S. We can expect to see a new reading on the housing price index and the mortgage index plus new home sales. Existing home sales were released today, missing estimates. Despite the miss the market did not react very bearishly.
We can also look forward to our first look at first quarter GDP as well. Analysts are expecting growth in the range of 2.8-3.2%. I am leaning toward the high end of that range simply because the 1st quarter data was so much better than generally expected. The U.K. will release its Q1 GDP figures Thursday and may foreshadow the U.S. numbers.
The U.S. won’t be the only area to watch this week. Europe has it’s share of important data including important inflation data from Germany and France. Japan will return to the spotlight later in the week when the BOJ meet again. It will be the second meeting with Kuroda as chairman and it could bring a new addition to the current easing policies. Laced through all of this will be earnings. Earnings and outlook are going to have a huge impact on individual stocks and sectors so this will definitely be a stock pickers week.
1. S&P 500 Returns To Trend
S&P 500
Call/Put = Call
Entry = Below 1555
Expiration = End of the month
Why Should you Trade
All the negativity and selling in the S&P last week did not break the long term up trend. It did bring the index back down to trend or near enough. Taking the long term charts (weekly bars) by themselves I might turn a little bearish because my indicators are getting a little weak. The last few times this has happened 5-8 weeks of selling followed. If this were to happen I would expect the S&P to fall as far as 1500, maybe a little lower, before finding a bottom. I don’t think that this set up is going to happen this week but it could in the near future. The index is at a very significant resistance level and potential turning point. For now I am still bullish in the nearer term.
When I move down to my daily charts I see a market making what appears to be a normal return to trend. The first quarter was pretty strong, not booming but strong. The market trended up because joblessness came down significantly, housing improved steadily and so far we seem to have weathered the Fiscal Cliff and Sequester. Now that the index has returned to trend the data can begin to support the market again. This weeks data should support the same steady improvements going into the GDP report and this should lift the market to at least retest the highs around 1600. I am trading calls with end of the month expiration and entry below 1555.
2. Euro Blowing Off Steam?
EUR/USD
Call/Put = Put
Entry = Above 1.3000
Expiration = End of the month
Why Should you Trade
The EUR/USD pair made a nice little blow-off top last week. This week started with the pair breaking the 30 day moving average. The top’s close and the break below the moving are both below a Fibonacci retracement and bearish in my opinion. This trade could go as low as 1.2884 on a firm break below the moving average. I have also heard more chatter about a possible rate cut by the ECB, another source of concern for bulls in this trade. It is possible we could hear more about this week as well. Weak data in Europe and/or strong data in the U.S. will help this trade move down. I am trading puts with an entry above 1.3000 and an end of the month expiration.
3. Yen Gets The Nod, Slide Slide Slide
USD/JPY
Calls/Puts = Calls
Entry = Below 100
Expiration = End of the month
Why Should you Trade
The G20 gave their approval to Japans monetary policy. This signals a go ahead of the aggressive easing policies that have been driving this trade. The BOJ is meeting again later this week and could make further moves to devalue the yen. The USD/JPY pair is bumping up against the resistance of 100 but is indicated higher with the support of policy and the international community. I am buying calls on the USD/JPY with an entry below 100 and an end of the month expiration. It is possible the trade will break out sooner than expected. If this is the case I will enter a half size position and then reevaluate for additional entry.
4. Apple Snap Back
Apple
Call/Put = Call
Entry = Below $400
Expiration = End of the week
Why Should you Trade
Apple has been trending down for months on bad expectations and loss of faith. This has driven Apple shares and expected revenue to new lows. Apple reports earnings Tuesday after the bell and has a good chance of surprising investors. Apple is still a strong company, still has great sales, still has potential and still has the best devices. I am buying calls on Apple with a target entry below $400 with an end of the week expiration.
5. Gold Bounce Won’t Last Long
GoldCorp
Call/Put = Put
Entry = Above $28.50
Expiration = End Of The Week
Why Should you Trade
Gold hit new lows last week. The drop did not have quite the affect on GoldCorp I though it would. The stock traded sideways throughout the week but I did manage to make a successful trade. This week gold is bouncing but it is only a technical bounce. My targets on gold have prices down around $1250 in the long term. Even if this doesn’t happen gold prices are still at multi-year lows and this will definitely impact GoldCorp’s profit outlook. I am trading puts on GoldCorp with a target entry above $28.50 and an end of the month expiration.
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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 AnyOption Binary Options Trading Platform.
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