Tip from the Geek – Top 5 Binary Options Trading Tips 8/05-12/2013

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.

 

 

U.S. Markets Reach New Highs

 The Non-Farm Payrolls data released last week was a surprise to most market participants. The somewhat ominous reading of 165K new jobs could have been a real downer for the U.S. indices. However, traders and investors alike used the early morning weakness caused by the report as an entry point. By day’s end the S&P 500 and Dow Jones Industrial Average had set another new high. This is a very bullish sign in my opinion. Not only did the market make a new all time, it was the second one in a row and happened on Friday, a well know sign of market support.

 

This week the indicators are bullish and economic data is very light. Today, Monday, the only report of note is the non-manufacturing ISM reading which came in above expectations at 56.0. This is the high since February of last year and nearly 4 points higher than last month. Readings above 50 are regarded as expansionary, this reading is reaching levels referred to as strongly expansionary. Other data of importance this week will be jobless claims. The lack of data alone may cause the markets to create some spinning tops this week but other factors are also at play. For one there is still earnings season to consider. Although most of the big names have reported there are still quite a few companies left to report. This week is one of the biggest weeks for earnings for sheer number of companies reporting. There are nearly one thousand corporations releasing earnings statements this week.

 

 

 

1. S&P 500 Reaches New Highs

 S&P 500

Call/Put = Call

Entry = Below 1705

Expiration = One week

 

 My Trading Advice

Last week the S&P 500 made a new all-time high, two days in a row. This week it was reported that last month saw record inflows of capital into U.S. equity funds. This is a fundamental piece of evidence supporting the recent rallies. Record inflows of money into mutual and other funds shows that there is real money supporting the already bullish technical picture. At the current time the charts of the S&P are about as bullish as I have seen them. The daily chart is showing a stochastic buy, a MACD buy, is breaking above resistance and setting new all time highs. This also following a 12 month extreme peak in the MACD, a sign that momentum is strong and higher prices should follow. Backing all this up is the long term chart with is still showing a strong buy as well. Based on this evidence I have no choice but to trade calls on the S&P 500. My target entry will be near support and below 1705 with one week until expiration.

 

 

 

2. Stubborn Resistance To Abenomics

 USD/JPY

Call/Put = Call

Entry = Below 98.75

Expiration = One week

 

 My Trading Advice

The USD/JPY is facing stubborn resistance at the 100 level. Little do those bears no but the technical picture is shaping up for a strong move higher. Abe and his plans are here, his government supports him and they are all committed to the long term strategy. This pair should continue to move higher once the 100 level is whittled away. I am trading calls on the pair this week because of the technical picture and the fact that the USD/JPY is trading near the bottom of the near term trading range. My target entry is below 98.75 with one until expiration.

 

 

 

3. Euro Topping Out In Near Term

 EUR/USD

Call/Put = Put

Entry = Above 1.3250

Expiration = One Week

 

 My Trading Advice

The EUR/USD pair is trading near the top of its trading range. Indicators have rolled over and are weakening plus I see no change, or expected change, to fundamentals. At least not this week. Tapering is factored in, right now it is time for currency traders to watch the data for signs of if it will happen in September or not. For now I am trading puts on the euro with a very short term expiration, at least for me. My target is to get in above 1.3250 with one week until expiration.

 

 

 

4. Gold Supported On Hopes And Dreams

 Gold

Call/Put = Put

Entry = Above $1305

Expiration = One Week

 

 My Trading Advice

The soft NFP numbers Friday helped gold find support. The weakness in jobs creation helped to fuel hopes that tapering was not as close as it appears. It also sparked dreams of even more QE, something that I think is highly unlikely. The FOMC meeting and statement sent gold prices plummeting, dropping below $1300, now the metal is trading just above that line with downward indications. I am trading puts on gold this week with a target entry above $1305 and one week until expiration.

 

 

 

5. Facebook Face-Off

 Facebook

Call/Put = Put

Entry = Above $38.50

Expiration = 3 days

 

 My Trading Advice

Facebook has certainly gotten a face lift in the eyes of investors. It has been on a wild tear ever since reporting earnings two weeks ago. The stock is now extended way past any support or trend line and is extremely overbought. I don’t want to bet against this new up trend but I do see some opportunity here to bet on a small correction in the stock. I am trading puts on Facebook with a target entry above $38.50. I am only giving it 3 days until expiration because I think the longer term trend in Facebook is now up.

 

 

 

More Tips by the Geek  – 8/05-12/2013 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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