Tip from the Geek – Top 5 Binary Options Trading Tips 7/01-08/2013

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

Michael is using the Communitraders platform for all of his tips. Follow along with the Geek’s progress in the forums.

 

 

New Week, New Month And New Quarter

A new week always brings a new spin to trading. Add into that the start of a new month and you also have to add in the volatility that comes with the newest round of macro economic data. Add into that the start of a new quarter and you just might get one of the most volatile weeks of the year and none of this takes into account that this is a shortened holiday week for U.S. markets.

 

Now, it is the summer and that is a time the markets are usually calmer (relatively speaking) and not usually a great time for short term traders. I think this summer could be a lot different. An early rotation into cyclical stocks may have trumped the sell-in-May-and-go-away mentality. We also have just gotten past the taper tantrum and signs are good for continued economic expansion even with reduced QE. The second half of the year is going to be a good one I think, making the current market levels attractive for calls on equity positions like stocks and indexes.

 

Of course, my outlook is dependent on data. This week is a big one for the markets because of the new month. Early Monday trading was influenced by increased construction spending and expansionary manufacturing data. Tomorrow the data continues with auto and truck sales figures as well as more manufacturing data. Wednesday get real hot with the mortgage index, Challenger Job Cuts and ADP Employment data. Thursday provides a break in the week because of the July 4th holiday but Friday makes up for the pause with jobless claims, unemployment figures, non-farm payrolls and consumer credit. Providing that recent trends hold true, and I see no reason to doubt them, the data should support continued expansion and the bull market.

 

P.S. Everyone should be watching the Tour De France!

 

 

 

 

1. The S&P 500 Bounces Into A New Year

S&P 500

Call/Put = Call

Entry = Below 1620

Expiration = One Week

 

My Trading Advice

The SPX has been making a nice bounce from the long term support of previous all time highs. Today’s data helped to boost that bounce and sent the index above the 30 day moving average. The rest of this weeks data will likely help to further support the rally, not to mention incoming earnings reports. Although the season officially starts on Monday with Alcoa we have already received a few reports of note. The trend so far? Increased revenue on slightly weaker than expected earnings. If that sounds familiar it should, that has been the trend for the last 3 quarters.

 

I expect volume to be a little light this week because of the holiday. This could result in some high volatility days, driven by economic events. I am neutral on the index in the short to long term but bullish in the near. I am trading a call on the S&P 500 with a one week expiry and a target entry below 1620. I will be watching the market closely and may enter into a 3 day call on any signs of weakness.

 

 

 

 

2. Yen Slip Sliding Away

 USD/JPY

Call/Put = Call

Entry = Below 99.75

Expiry = One Week

 

My Trading Advice 

The USD/JPY has also made a nice bounce from long term support. The pair is indicated up but faces some resistance. The pair is currently trading just beneath the psychological 100 level but should puch up through it without too much trouble. I am currently trading a call on the pair with a target entry below 97.75 and one week till expiration. I will also trade another call with 3 day expiration upon the break above 100.

 

 

 

 

3. Europe Returning To Growth

 EUR/USD

Call/Put = Boundary Inside

Entry = between 1.2975 and 1.3150

Expiration = 3 Days

 

My Trading Advice

New data from Europe shows that the region may be returning to growth. This has been the expectation for the last 6 months despite many reasons to doubt Draghi’s prediction. The next meeting of the ECB is this Thursday and I don’t expect any changes to policy. I doubt the ECB will increase QE and there is not reason enough for them to stop it either. Until then I expect the EUR/USD to hold steady where it is, trading near the long term support/resistance of 1.3000. Because of this I have decided to try out a boundary inside option with a predicted range of 1.2975 and 1.3150 with three days to expiration.

 

 

 

 

4. Beware Of Fools Gold

 Gold

Call/Put = Put

Entry = Above $1230

Expiration = One Month

 

My Trading Advice

Gold traded to the upside Monday, contrary to my expectations, but is providing a nice entry for bears. The $20 climb is impressive in the face of all the recent selling but does not signal a bottom. Because gold broke my downside target, and smartly, I have lowered my long term target to the $1100-$1150 region. I am trading puts on gold with a target entry above $1240 and one month expiry.

 

 

 

 

5. Bite The Apple, Miss The Worm

 Apple

Call/Put = Call

Entry = Below $405

Expiration = One Month

 

My Trading Advice

I like Apple. There, I said it. I believe in the company, future sales and future innovations. Now, after the last 6 months of bear market in the stock it looks like it is finding a bottom. With earnings just around the corner I think there is a good chance for Apple to beat expectations or at least provide guidance/future outlook that will boost long term appetite for the stock. I am trading a call on Apple with a target entry below $405 and a one month expiration.

 

 

 

More Tips by the Geek  – 7/01-08/2013 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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