Tip from the Geek – Top 5 Binary Options Trading Tips 5/27-6/03/2013 – 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 Mixed Awaiting Late Start To U.S. Trade

 The U.S. markets are closed today for the Memorial Day Holiday. The world markets reacted in mixed fashion ahead of the late start to the week. Asian markets, especially the Nikkei, had a rough start. The Japanese index shed another 3% bringing it close to the 14,000 support zone. I expect to see a lot of volatility in the Nikkei due to the stimulus policies of the Japanese government. European markets were more stable and moved to the upside in thin trading. The UK market is also closed for their Spring Break Holiday. Monday was kind of a throwaway, look for tomorrow to be the real start of the week.


Last week the markets got a shock to the system when ole Ben Bernanke revealed just how close to tapering we are. Or did he. The comments he made on Capital Hill and the FOMC minutes released later in the day were enough to make the markets think tapering was going to begin as soon as next month. However, upon deeper thought, I think and I think the markets think that tapering and an end to QE is not as close as we may think. In the end what does it really mean to the markets is the Fed begins to ease of on the gas? The U.S. economy is stable and stabilizing, a few billion less than the $85 billion dollar a month bond purchases we have now won’t be that big a deal.


The real threat to the U.S. market is the rest of the world. Japan is manipulating the hell out of it’s economy, China is doing whatever it is the Chinese government does that we never hear about and Europe is still highly questionable.  At this time look for improvements in Europe and Asia. Now that the EU is able to turn its focus away from budget cuts it can begin to tackle the problems of unemployment.



1. S&P 500 Support May Come To Market

 S&P 500

Call/Put = Put

Entry = Above 1640

Expiration = End of the week


 My Trading Advice

This week is relatively light on U.S. economic data. There are some events but nothing that I see as particularly supportive or market moving. Because of this I see the S&P moving down to the support level of 1630 and possibly lower. Next week we will get the big run of monthly data culminating Wednesday, Thursday and Friday with the employment bundle (ADP Employment, weekly jobless claims, U.S. unemployment and NFP). I expect to see these numbers support the recent trends and the rally, a disappointment here could send the markets lower.


This week I think the markets will drift. The holiday in the U.S. and U.K. will not close global trading but it will subdue it. Near term support exists for the S&P around 1630 with stronger support levels around 1600. Look to these numbers this week as downside targets ahead of next weeks onslaught of economic data. I am trading puts on the S&P 500 with a target entry above $1640 and an end of the week expiration.




2. Gold Is Still Not Shiny


Call/Put = Put

Entry = Above $1390

Expiration = End of the week


 My Trading Advice

Gold prices have been rebounding but I do not think it is the right time to get bullish on this metal. My technical indicators are pointing to at least a retest of last months low prices if not a break through. Long term targets for gold are as low as $1225 at this time. Added to this is my expectation of a continued U.S. economic recovery and strong dollar. The combined pressure should be more than enough to bring gold down to $1325-$1335. I am trading puts on gold with a target entry above $1390 and an end of the week expiration.




3. Euro Faces Resistance


Call/Put = Put

Entry = Above 1.29000

Expiration = End of week


 My Trading Advice

The euro made a technical bounce from a 50% retracement level last week but still faces resistance at 1.3000. Not only is there a long term resistance level there as well the 30 day moving average is adding its own downward pressure. I am trading puts on the EUR/USD with a target entry above 1.2900.




4. The Yen Trade Is Still On


Call/Put = Call

Entry = Below 101.125

Expiration = End of the month


 My Trading Advice

The yen slide is still on. Japanese ministers may feel the yen has devalued enough but that does not mean that the yen is not going to fall lower. The policy set in place by Abe and Kuroda have a two year outlook with an even longer term end result. Don’t expect the yen to strengthen too much in the near term. I am looking to trade calls on the USD/JPY with a target entry below 101.125 and an end of the month expiration.




5. Financials Strong In The Near To Short Term

 Bank Of America

Call/Put = Call

Entry = Below $13.25

Expiration = End of the week


 My Trading Advice

The financials look strong going into the near term. Looking at charts of the Bank Index and Financial Spyder I see a sector with support and momentum. Digging deeper into the sector and coordination with the available assets on Communitraders I have chosen to play this with Bank Of America. BAC has support at $13 and is bouncing from the short term moving average at the same time. I am trading calls with a target entry below $13.25 and an end of the week expiration.




More Tips by the Geek  – 5/27-6/3/2013 Trading Tips On Forum.


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.


 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 CommuniTraders and Start Trading,  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.