Tip from the Geek – Top 5 Binary Options Trading Tips 8/19-26/2013

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.



Market At Inflection Point

 The markets are at an inflection point. They, and more specifically the S&P 500, have retreated to the long term trend in a consolidation move ahead of next months round of central bank meetings. U.S. futures trading was basically flat this morning following a quiet opening in other parts of the world. The tepid stance was maintained into the U.S. open. There was not much on the event the schedule for Monday but the list heats up later in the week.  As for economic data this week brings us important housing figures, unemployment claims and leading indicators in U.S. All of course scheduled for release after we see the minutes from the last FOMC meeting. We know what the FOMC told us, now we’ll get to read what the governors are actually thinking and talking about the economy, QE and tapering.


The economic calendar is also full of global events as well. Great Britain reveals GDP, Germany unleashes PPI, we’ll see PMI and flash PMI reading from around the globe, the Jackson Hole Symposium is on, and a host of other important regional data. The data, and the FOMC minutes, will lead to a lot of speculation on tapering. This may provide support or it may cause the markets to break down. My take is that if the economy is still strong enough for tapering to be on the table then its strong enough to make the 2nd half GDP bounce that we have been expecting.


In the end it is a stock pickers market and it will likely remain so. Some companies are doing well, others are not. Things are getting better for business and the economy but its not always good for everyone all the time. This means that some will rise in favor while others fade away. The thing to remember is that the trend is still up and the global economy is still improving.




1. S&P 500 Trading At Long Term Support Line

 S&P 500

Call/Put = Call

Entry = Below 1660

Expiration = One Week


My Trading Advice

The S&P 500 has had a couple of down weeks. What this has done is brought the index down to the long term trend line and put the index into oversold conditions. And right before the start of the fall trading season, the next FOMC minutes and the meaty portion of the 2nd half of the calendar year. Fear of change, fear of the Fed and fear of tapering have provided plenty of reason for short term, near sighted investors to flee the market.


What we have to remember is that tapering means the U.S. economy is strong enough in the FOMC’s eyes to move on by itself. We also have to remember that tapering is not tightening, there will still be asset purchases. There is also still the chance that the FOMC could increase or bring back assets purchases at any time that it sees fit. The long term trend is up and I am still bullish on the markets. I am trading a call on the S&p 500 with a target entry below 1660 and one week til expiration.




2. Gold Bouncing


Call/Put = Put

Entry = Above $1365

Expiration = One Week


 My Trading Advice

Taper fears, the Middle East and plain old speculative buying have driven the price of gold way up. Gold has broken above one important resistance line and may have broken the long term down trend. This however does not mean that the trend is now up or that gold will keep rising. Likely, gold will be range bound for a while, at least until after the September round of central bank meetings. Until then I am going to play a put. The spike in gold was so sharp last week that I am expecting an equally strong test of support. I have a target entry above $1365 and am using one week of expiration.




3. Apple Dapple!


Call/Put = Call

Entry = Below $510

Expiration = One Week


My Trading Advice

Apple may have returned as a market leader. The stock, on the heels of an Icahn/Soros driven rally, has now broken above the $500 level. This break out has a target nearly $100 points higher but I am not holding my breath to see that. However, the stock is in play and I am trading a call this week. My target entry is below $510 with one week until expiry.




4. Screwing With The Yen


Call/Put = Call

Entry = Below 98

Expiration = One Week


My Trading Advice

The USD/JPY is forming a text book long term triangle. The pair has been winding up since first crossing above Abe’s target of 95 in early April. At this time it looks as if the pair will continue to rise and I see no reason why it shouldn’t. Abe, Kuroda and others have pledged time and again that they are committed to the chosen path. With the recently released weak GDP numbers causing speculation to rise over the speed and strength of the recovery it is possible and maybe even likely that there will be additional measures to improve growth. Regardless of what happens the indications are up and the pair is showing strong support at the current level. I am trading a call with one week until expiration and a target entry below 98.




5. Three Days Call On EUR/USD


Call/Put = Call

Entry = 1.3350

Expiration = 3 Days


My Trading Advice

I don’t have much to say about this pair this week. Except that the chart is showing a strong buy, at least for today. There is a strong stochastic crossover, with both line pointing up simultaneously, while the pair is trading above support. This pair has a lot of resistance ahead as well so I don’t want to hold the option too long. I am trading a three day position on this pair so it expires this week, a one week position would carry it until at least next Monday or  later, depending on when I get in.




More Tips by the Geek  – 8/19-26/2013 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.