Tip from the Geek – Top 5 Binary Options Trading Tips 6/03-10/2013 – Now on CommuniTraders!
Easy to understand Binary Options Trading Advices. Try Trading on CommuniTraders!
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Expect Volatile Trading As June Opens For Business
As I was preparing my notes for this weeks tips I thought to myself, “you should expect to see some volatility this week”. I thought this for several reasons. First, last week was volatile and left the major indexes down for the week but up for the month. Another reason is because of the massive amount of economic data to be released this week. Its the first week of June trading which means we get the monthly releases of ISM, PMI and trade balance data from most of the worlds major players. We also get the first look at 2nd quarter GDP from Australia and the all important ADP-Challenger-NFP-Unemployment bundle from the U.S. Thursday will be a rate decision and press conference with the ECB and all of this comes on the coattails of a crashing Nikkei.
The release of U.S. ISM and Construction Spending data proves my point. The S&P 500 was up in futures trading, traded flat to up in the first half hour of trading and then made a 9 point swing that began with a deep dip into negative territory. Both were weak but not excessively so, pointing to continued QE from the FOMC. It took less than 30 minutes for this swing to calm down and return the index to the break even point. With all the data yet to come I expect to see more of these swings throughout the week. They will be great entries for short and near term traders like us.
1. S&P Still Trending UP
S&P 500
Call/Put= Call
Entry = Below 1630
Expiration = 1 month
My Trading Advice
The S&P is still trending up and looks like it has support at 1630. This level is coincident with the short term moving average and a support level set in the beginning of last month. Even if the index were to break below this level it has at least another 30-35 points to fall before coming close to breaking the long term trend. This week should prove to be a volatile one for the reasons I described above but I still don’t see a top to the market. I don’t mean to say that its not there, its not coming or it’s not close just that I don’t see it in the charts yet.
Data may not be as good as I think, it may bring the index down below 1630 for a few days or a week. This will be an entry point for me. The long term the trend is still up so I am buying the dips. The selling over the last two weeks is a cause for concern and reason to draw a resistance line but it that line is untested. I am trading calls this week on the S&P 500 with end of the month expiration and a target entry below 1630.
2. Euro Faces Technical Resistance
EUR/USD
Call/Put = Put
Entry = Above 1.2950
Expiration = 1 Week
My Trading Advice
The Euro is facing technical resistance versus the dollar around 1.3050 level. This level is an important Fibonacci level and one that has been significant more than 10 times over the last 12 months. This week the ECB is expected to announce no changes to policy, a move that shouldn’t move the pair too much by itself. At the same time we are going to get a massive amount of EU data on ISM, spending and inflation. Unless Europe has turned an unforeseen economic corner I expect this data to be weak in relation to U.S. data and send the EUR/USD pair lower. I am trading puts on the EUR/USD with an one week expiration and a target entry above 1.2950.
3. Yen Finding Support Around 100
USD/JPY
Call/Put = Call
Entry = Below 100.25
Expiration = 1 week
My Trading Advice
The yen is testing an important support zone against the U.S. dollar. The 100 level was an important breakout level last month and now the 30 day EMA is hovering around that level as well. I see this as an important psychological level for the pair and a potential jumping off point for another long term bull leg. The policy of Abe and Kuroda has a multi-year outlook and should impact this pair on into the future. I am trading calls on the USD/JPY with a target entry below 100.25 and a one week expiration.
4. Is Gold A Gold Mine?
Gold
Call/Put = Put
Entry = Above $1395
Expiration = 1 week
My Trading Advice
Gold’s drop below $1400 at the end of last week was a bearish development in my opinion. The metal is in the hands of technical traders and $1400 was an important support level. A break below this level will send the metal lower. Adding to this view my long term indicators are still pointing to a retest of long term support. This level could be higher than my previous prediction of $1325 but it is much lower than where gold is trading now. I am trading puts on gold with a target entry above $1395 and a one week expiration.
5. Financials Leading The Markets
Bank Of America
Call/Put = Call
Entry = Below $13.75
Expiration = 1 week
My Trading Advice
The financial sector has been leading the markets lately. The stabilizing economy is a boon to the sector regardless of market direction and Fed tapering. The Banking Index is bullish in the long and short term with plenty of room to move up before hitting resistance. Within the sector Bank Of America looks good to bounce from support and retest recent highs. I am trading calls on Bank Of America with a target entry below $13.75 and a one week expiration.
More Tips by the Geek – 6/3-10/2013 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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