Tip from the Geek – Top 5 Binary Options Trading Tips 5/6-13/2013 – Now on CommuniTraders!

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

ATTENTION GEEK FANS: From now on all of my tips will be based on the assets and expiry’s found on CommuniTraders!  For those of you who are not yet familiar with Communitraders it is the new social trading platform created by ThatSucks.com (former BinaryOptionsThatSuck.com).  The biggest difference is the expiry’s available on Communitraders are not the same as those I have been using with my Broker. Instead of End of Month it will be One Month and the same for the end of week, that will change to one week. One month is thirty days from purchase, one week is seven.  If the Tips are trigged during the week, set the expiry time to 1-5 days so the trade will be expired on weekend. As always, if you have any questions about my weekly tips, Communitraders or anything on BOTS.com don’t hesitate to ask me or one of my colleagues here at BOTS.



New Month, New Highs

It isn’t the first of the month but it is the first Monday of May and that means it is the first of my tips for May. Last week the S&P and other major indexes made new highs. The S&P made a new all-time high and is indicated even higher. The world’s central banks are still supporting the global economy and economic data is still providing evidence the support is working. So long as this is in place the world economy should be able to grow as well. The downside is that the evidence is not as robust as some have been expecting and there are some spots of worry around the globe.


Usually, when an index or stock or other asset breaks out to a new high the tone is bullish. In the current case bullish may be too strong a word. The S&P 500 did break into new all-high territory but it also pierced the top of the secular range. This is troublesome because it is the perfect place to end the rally we have been riding the last few years. Just exactly when this reversal may begin is hard to say. Until evidence of my anticipated bear market shows up on the chart I have to trade the way it tells me to and for now that is up. 


This week is extremely light for U.S. economic data. Around the world is much the same. Check out Bogdan’s thread on market moving events of the week for more details on that front. Earnings will take the spotlight from the macro data for the time being. There are quite a few high profile reports still to come, topping it this week is AIG, Pfizer, NYSE-Euronext and my favorite tabloid stock, Herbalife. The bulk of S&P 500 companies have already reported so it shouldn’t be to volatile this week. Other than that more than 1,000 U.S. corporations report earnings this week.




1. S&P 500 Breaks Out To New Highs

S&P 500

Call/Put = Call

Entry = below 1610

Expiration = 1 month 


 Why Should you Trade

Aside from the massive onslaught of small and mid cap earnings reports there really isn’t much going on in the world this week. This means that fundamentals and future earnings expectations will rule this market. Last weeks jobs report, especially the revisions to the previous data, was a real boost for sentiment. This was seen in the huge jump in equity prices Friday. This euphoria could carry into the first of the week so an early week entry may be tricky. I do not recommend chasing prices higher, waiting for the market to calm after the rush is the right thing to do.


Weekly and daily technical indicators are bullish. If the index wasn’t extended so far past the 30 day moving average I would say buy at Friday’s closing price. However, the index is rather extended so I think it best to wait for a test of support. This could bring the index all the way down to 1600 or below but I do not think this will last long. I am bullish on the index in the near to intermediate term but more wary of reversal than ever. The rally is old, tired and extended. This week I am trading calls on the S&P 500 with one month expiration and a target entry below 1610.




2. Gold, Gold, Gold, Gold, Gold


Call/Put = Put

Entry = above $1470

Expiration = 1 month


 Why Should you Trade

Gold prices rebounded nicely after hitting their lows last month but that rebound has stalled out. The price of gold has been trending sideways for the last two weeks and now will likely move lower. The move down from $1600 to $1325 was very strong, a retest of support is probable. My analysis leads me to believe that gold could go as low as $1250 in the longer term. I am trading puts on gold with one month expiration and a target entry above $1474.




3. German Recover Still On Tap


Call/Put = Call

Entry = below 8125

Expiration = one month


Why Should you Trade

Germany is the most likely country to begin growing in the EU. The ECB’s latest move to lower interest rates could be what it takes to shock Germany back into growth. The DAX may have a small pull back to retest the recently broken resistance level around 8,000 but the near to intermediate term outlook is bullish. I am trading calls on the DAX with a target entry below 8,125 and a one month expiration.




4. Strong U.S. Equals Strong Dollar


Call/Put = Put

Entry = above 1.310

Expiration = one week


Why Should you Trade

The ECB had to cut its key interest rate last week in an effort to stimulate growth. This is a good thing for the EU economy and the long term global recovery but a bad thing for the euro. The EU economy is still weak and that weakness is persisting, at least according to Mario Draghi. A weak EU and a strengthening U.S. means strong dollar and weak euro. Last week the EUR/USD pair touched resistance at 1.3250 and then fell hard. That peak was a two week high and came with a highly divergent MACD indicator. It’s hard to say where the euro is going right now, it may be range bound. I am trading puts on this pair with a target entry above 1.310 and a one month expiration.




5. Yen To Break 100


Call/Put = Call

Entry = below 100

Expiration = 1 month


Why Should you Trade

My USD/JPY chart is telling me to buy. There is a stochastic buy signal on the weekly and daily charts. There is still resistance at 100 that may stop the move for a short time but strong MACD is also supporting higher prices. I am trading calls on the USD/JPY with a target entry below 100 and a one month expiry.





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 CommuniTraders and Start Trading,  only on BOTS.com new growing community. More Tips by the Geek on Forum here  – 5/6-13/2013 Trading Tips.


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