Tip from the Geek – Top 5 Binary Options Trading Tips 9/02-09/2013
Easy to understand Binary Options Trading Advices. Try Trading on CommuniTraders!
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A September To Remember
I think that this month is going to be one to remember. There is a whole lot going on around the world and it has the markets wound up into a tight little ball of worry. This week alone is host to over 100 global economic announcements ranging from BOJ policy to decisions to ECB policy decisions, a string of international PMI’s, Swiss GDP, FOMC Beige Book, U.S. Non-Farm payrolls, U.S. unemployment and the G20 meeting. By itself this week presents a real hurdle for traders. Each event has the potential to prod the market into moving, in either direction. Many traders agree that trading ahead of such an announcement is ill-advisable at best. With so many events on the calendar this week the market place will be a virtual mine field for short term and long term traders alike. Not to fear though, there will be trading opportunities for binary investors.
The long term trend is still up despite fears of FOMC tapering, global growth concerns, German elections, rising interest rates, the debt ceiling and the growing issue with Syria. The underlying fundamentals of the international economy, the economic data, is strengthening. Yesterday PMI from China and the Eurozone came in better than expected, showing an increase in manufacturing for both economies. The news sent Asian indexes higher by over a full percentage point, led by the Nikkei which gained nearly 3%. Chinese PMI hit a four month high while the Eurozone hit a +2year high. I expect that by the end of the week the markets will have given us a direction to follow. The trading volume should be back as institutional investors return to the market and I think the data will lead the way.
1. S&P 500 Still Bouncing From The Long Term Trend
SPX
Call/Put = Call
Entry = Below 1640
Expiration = One week.
My Trading Advice
I am a technical trader and I have to do what the charts tell me. The S&P 500 is still in a long term up trend with bullish signals. On the long term charts the index has retreated to my long term trend line, the line created by joining the low of November ’12 with the low of June ’13. This is a 7 month trend in line with the primary trend and the current secular trend. The new secular trend started with the break above the previous all-time highs in April and is now in it’s second correction. Even if you are a longer term bear we can still expect at least one more up leg, based on Dow Theory, before any reversal. I say this because most trends, especially in the S&P, will have 3-5 up legs before reversing.
In addition to the long term trend analysis the shorter term analysis, daily charts, is looking good as well. MACD and stochastic are both indicating support at the current level. The bearish MACD wave we saw in August is subsiding while the index trades along the up trend line, stochastic is extremely oversold and showing a bullish crossover. The huge jump in index prices going into the open of trading on Monday only helps to confirm my bullish opinion. I am trading a call on the S&P this week with one week until expiration.
2. German Market Just As Crazy As Anyone
DAX
Call/Put = Call
Entry = Below 8250
Expiration = One Week
My Trading Advice
The German markets showed that they are just as crazy as anyone else last week. The DAX fell sharply on lack of volume and short term fear to provide another buying opportunity. The EU and Germany are in recovery. The region and the country are growing again, helping to support the global economy and being supported by it as well. There could be some volatility in this market over the first part of the week with the ECB meeting happening Thursday but I expect the DAX to move higher. I am trading the DAX with a target entry below 8250 and one week until expiration.
3. Yen Slide Starting
USD/JPY
Call/Put= Call
Entry = Below 99.50
Expiration = One week
My Trading Advice
As I said earlier, I am a technical trader and I trade how the charts tell me. The USD/JPY is breaking out of a 5 month triangle trading range to the upside with bullish technicals. If I were a spot trader this breakout would have a target 6 handles higher than the current prices just under the 100 level. The breakout comes with long and short bullish indicators. I am trading a call on the USD/JPY with one week of expiration and a target entry below 99.50.
4. Euro Weakening
EUR/USD
Call/Put = Put
Entry = Above 1.3175
Expiration = One Week
My Trading Advice
The euro has been losing ground against the dollar for over a week since hitting the top of the long term range. The pair is moving lower now and is now trading just below the resistance of 1.3200. This pair is stuck in a range but indicated lower at the current time. I see no reason to think the ECB is going to do anything to strengthen the euro this go-round so I am trading a put on this pair. My target entry is above 1.3175 with one week until expiration.
5. Bearish On Gold
Gold
Call/Put = Put
Entry = Above $1400
Expiration = End of month
My Trading Advice
I am still bearish on gold. Tapering, a stronger global economy and a stronger dollar can only mean one thing for gold in my opinion. Lower prices. I am trading a put on gold with a target entry above $1400 and one month until expiration.
More Tips by the Geek – 9/02-09/2013 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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