Tip from the Geek – Top 5 Binary Options Trading Tips 4/29-5/6/2013

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

 

 

Tricky Week Ahead For The Market

This is a tough week for the markets. The month ends mid-week and the next round of market moving economic data begins. There are a variety of reports to follow this week but for me the important ones are ADP/Challenger on Wednesday, jobless claims on Thursday and then the U.S. non-farm payrolls and unemployment data on Friday. This month it is much harder to predict where jobs and unemployment will be. There is activity in job creation, jobless claims have been trending down and we are nearing the summer season. These are all positives for me and a reason that unemployment could tick down. Another reason and a possible negative for the markets is the declining participation rate.

 

This week started off quietly. Japan was closed Monday for a holiday. Trading in Chinese and other regional markets were muted. European stocks got a lift from Italy that carried over into the U.S. open. Italy has been able to form a coalition government, has a recovery plan and is expected to release it soon. It’s possible that by the time this article hits the ether that plan will be known.

 

U.S. futures trading were positive this morning ahead of this weeks first release of economic data; Consumer Spending (ominous music plays in the background). Stability in Italy is good for Italy, which is good for the EU which is good for the U.S. This positive spin on the morning was boosted by a slightly better than expected consumer spending number. The reported 0.2% gain was ahead of consensus estimates of 0.1%. Even with the better than expected number this increase is the smallest in months. The take away is that spending did not slow as much as expected. Other data within the report suggest that disposable incomes are on the rise and that consumer level inflation is still well below the 2% FOMC target.

 

 

 

1. SPX Higher On Earnings?

S&P 500

Call/Put = Call

Entry = Below 1585

Expiration = End of the week

 

Why Should you Trade

The S&P 500 has two things moving it this week, earnings and the economy. This is one of four weeks of the year in which earnings season coincides with major economic data. Good thing it isn’t expiration week too. This week I will begin by touching base with my long term analysis. I do this on 5 year charts with weekly bars. On this chart my indicators are still bullish though very weak. MACD has retreated to near the zero line and flattened out, stochastic is high in the overbought and zone but pointing down. Looking back over the last year the index is still diverging from indicators and is at a very significant resistance level. I am beginning to have a very neutral outlook on this chart. The trend is still up so my trading is still up and so is my caution level.

 

I take most of my signals from the daily charts. This chart is telling me that trading calls is the right decision. Both indicators have turned bullish, confirming each other and the long term trend. At this time the signal is still weak. There is still resistance ahead, earnings and the economy may not be enough to get the index through it. I am trading calls this week because of my analysis. I am also making a cautious entry because of my analysis. Adding to the complexity of trading this week is the end of the month and my available expiry’s. For caution I am trading half size positions. Because of the end of the month I am buying one call early in the week with a target entry below 1585 and an end of the week expiration. Later in the week, contingent on a break above 1600, I will buy another half size position with an end of the month expiration.

 

 

 

2. Europe Still Vulnerable

DAX

Call/Put = Call

Entry = Below 7850

Expiration = End of the week

 

Why Should you Trade

Germany is in good position to benefit from a stabilizing EU. The formation of Italy’s government and new actions taken by Greece are two signs that the region may be on track to meet Mario Draghi’s forecast for EU GDP growth in the second half of this year. The DAX made a nice bounce last week from a long term support level. The index looks a little extended here but I don’t think a pullback is something I can count on at this time. I am trading calls on the DAX with a target entry below 7850 and an end of the week expiration.

 

 

 

3. Euro Can’t Find Direction

EUR/USD

Call/Put = Put

Entry = Above 1.3080

Expiration = End of the week

 

Why Should you Trade

The Euro has been trading flattish against the dollar for about 2-3 weeks now. The pair has been experiencing downward pressure due to weakness and instability in the EU. This pressure may let up but maybe not. The U.S. is definitely getting stronger. Things are super duper but they are OK. The EU is still a big question mark. It is still possible that the ECB will have to increase easing measures to help bolster the economy. I am looking for U.S. data to add to the pressure this week as well. I am trading puts on the EUR/USD with a target entry above 1.3080 and an end of the week expiration.

 

 

 

4. The Yin And Yang Of Yen

USD/JPY

Call/Put = Call

Entry = below 98.25

Expiration = End of the week

 

Why Should you Trade

The USD/JPY did not react exactly as I expected last week. The release of new BOJ inflation targets turned out to be a test of bull strength. The drop on Friday was big but not the biggest since the Abe rally began. Today I find the pair sitting just above its 30 day EMA and looking ripe for a weekly call. I am trading calls on the USD/JPY with and end of the week expiration and a target entry below 98.25.

 

 

 

 

5. GoldCorp Not As Shiny As Gold

GoldCorp

Call/Put = Put

Entry = Above $29.00

Expiration = End of the week

 

Why Should you Trade

The relief rally in gold is not carrying over into the gold producing stocks. Regardless of gold’s bounce their profits are still going to be impacted. GoldCorp was able to make a bounce last week and close the gap opened formed two weeks ago. It is still below the 30bar EMA and trending down. I am trading puts on GoldCorp with target entry above $29 with end of the week 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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