Tip from the Geek – Top 5 Binary Options Trading Tips 5/20-27/2013 – Now on CommuniTraders!

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

 Don’t forget that I have started using the Communitraders platform for all of my tips. Follow along with my progress in the forums.

 

 

Markets Expect Pullback?

There is continuing talk of a market pullback among market participants and I have to agree that one is long overdue. However, just because one is long overdue does not mean its coming today, tomorrow or next week. At this time there just isn’t sign of topping, correction or pullback in the U.S. market particularly and also other global markets. The DAX is at all time highs and the Nikkei is at five year highs and climbing. The major propellent for all of these markets is central bank support and fiscal stimulus. At this time there is no sign of any end to that coming soon.

 

Economic data this week is plentiful if low on the relative scale of importance. In the U.S. look out for FOMC minutes, new and existing home sales, unemployment claims and the 2nd estimate of first quarter GDP. Around the world the situation is similar. Lots of events, nothing of real long term market moving importance. Early in the week the European Union Economic Summit begins followed by a BOJ policy statement and press conference. Later in the week German and French PMI gives us a look into the EU and after things wrap up with a talk from BOJ governor Kuroda.

 

Not much happened over the weekend either. Headlines from around the world were not that interesting. Earnings season is also coming to a close. This week there are about 150 or so reports, some important ones, but nothing that is going to shake the foundations of the markets. In other business news M&A activity is heating up, a good sign for bullish traders long term. Yahoo! is the most recent big name to hit the news wires with its announced deal with Tumblr.

 

 

1. S&P 500 Is Bullish In Three Time Frames

 S&P 500

Call/Put = Call

Entry = Below 1670

Expiration = 1 week

 

 My Trading Advice

Anyone who is familiar with my style will know that I put a lot of faith in multiple time frame trading. Confirming a trade on more than one chart is the best way I know to create consistently profitable trades. At this time the S&P 500 is showing a buy signal in all three time frames I regularly watch so I am definitely in the call buying business this week.  Since I like the signals on the daily charts better this is the one I will trade. I am trading a call with an entry below $1670 and a 1 week expiration.

 

The good thing about this convergence of time frame signals is that it will provide many shorter term signals over the next week or two. So long as the one week charts show a rising market any buy signal on the daily chart can be taken. Likewise, when the daily chart is showing a current signal any buy signal that appears on the hourly charts can be taken. The important thing to note is that as you move down in time frame you need to shorten your expiration. Signals on the hourly charts should have no more than 1 day to expiration. 

 

 

2. Gold Turns To Rust

 Gold

Call/Put = Put

Entry = above $1350

Expiration = 1 week

 

  My Trading Advice

Gold is in the hands of technical traders, short sellers and bears. The metal is trending down and looks more than likely to retest the recent lows around $1325. The long and short term technicals are bearish and indicate that a break below $1325 could happen. I am trading puts on gold with a target entry above $1325 and a 1 week expiration.

 

 

 

3. Yen May Have Depreciated Enough

 USD/JPY

Call/Put = Put

Entry = Above 102.50

Expiration = End of the week

 

  My Trading Advice

I was shocked this morning when I heard Rick Santelli report that a Japanese official stated the yen may have depreciated enough already. There were also other reports, after a little digging, quoting other policy makers on the concern over the yen’s steep fall. My bearish position last week was not out of place, just a little too early. I am taking the same position this week with an altered entry. I am trading puts on the USD/JPY with a target entry above 102.50 and an end of the week expiration.

 

 

 

4. Euro Weakens Against Dollar

 EUR/USD

Call/Put = Put

Entry = Above 1.2840

Expiration = End of the week

 

  My Trading Advice

The euro is in a slide versus the dollar. The rate cut enacted by the ECB is still pressuring this trade, as is stronger U.S. data and weaker EU data. Long term there is support around 1.2750 but we are not there yet. I am trading puts on the EUR/USD with a target entry above 1.2840 and an end of the week expiration.

 

 

 

5. JPM Morgan With No Jamie Daimon?!?!

JPM

Call/Put = Call

Entry = Below $52

Expiration = End of the week

 

  My Trading Advice

JP Morgan was in the headlines early on Monday due to the shareholder vote on Jamie Daimon’s dual role as chairman and CEO. Whatever. JP Morgan is what it is because of JD, the Whale trade was a bust but it did not hurt JPM, the stock is in an uptrend and is indicated higher. I am trading calls on JPM with a target entry below $52 and an end of the week expiration.

 

 

 

More Tips by the Geek  – 5/20-27/2013 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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