Tip from the Geek – Top 5 Binary Options Trading Tips 9/23-30/2013

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.



No Taper Leaves Markets Mixed

 The Fed’s lack of taper came as a big surprise to many in the markets. However, if you look back over what Big Ben has been saying for the last 6 months it is clear they (the Fed) did just as they said. No threshold of economic data had been met, no inflation targets had been met and no expansive job growth had occurred. The hype and fear of tapering was definitely in control. I am glad I did not trade long term last week because the Fed decision and subsequent market action were just as unpredictable as I had feared. I did make two short term trades on Friday that both closed in the money.


This week it’s back to Fed watch, economy watch and stock picking. The trend is still up, the economic data is still improving (China’s better than expected manufacturing index is only the most recent example) and earnings are still OK. I’ll be stepping back into Apple this week because of the earnings expectation but you’ll have to read further to find out why. The indices are offering an entry I want to capture as well.


Around the world there have been other market shaping events. For one, China’a manufacturing index rose to a better than expected 51.2 from last months 50.1. This is expansionary and yet another sign of a stabilizing economy in China. In Europe Chancellor Merkel looks good to continue in her post but a mixed election has left open the possibility of a coalition government with the Social Democrat Party. The global markets ended the day mixed but with a positive take on the future. It looks to me as if things are doing just fine. Not fantastic, it is definitely not a boom time but it is definitely a time of normalcy.




1. The S&P Is Over 1700

 S&P 500

Call/Put = Call

Entry = below 1705

Expiration = One Week


My Trading Advice

Whewee! Last week was a roller coaster! The first half of the week was an emotional roller coaster of speculation of what the Fed would do, the second half a roller coaster of market prices as the S&P moved up, then down. I’m glad I sat it out, it was fun to watch it all happen while my account balance remained the same. Sometimes you win by not losing I say. Once the smoke cleared the index had made a new all time high and then sitting on the important support level of 1700. <p>


The indicators are still mixed as I described last week. The  longer term weekly charts are still have bearish momentum but it is also still in decline. The daily charts still have bullish momentum but that is also in decline. It appears at this time as if the daily traders are fighting the weekly traders and I think the weekly ones will win. Since the long term trend is still up, the index is above support and the economy is mildly bullish I am trading calls.  My target entry is below 1705 with one week until expiry.




2. Coalition In Germany?


Call/Put = Put

Entry = Above 1.3500

Expiration = One Week


My Trading Advice

The Euro weakened after Angela Merkel’s center-right party won in this weekend’s elections.  However, one of her key supporters lost and opened the door to a potential coalition with the Social Democrats. I’m no political analyst and I don’t know much more about German politics than what I have already said but I can recognize an opportunity for the market to worry itself to death when I see one. The eur/usd fell on the news and broke the 1.3500 level in today’s trading. The pair is indicated at the top of a range and looks good for a downward leg. I am trading a put with a target entry above 1.3500 and one week until expiration.




3. Whats Up With The Yen?


Call/Put = Call

Entry = Below 99

Expiration = One week


My Trading Advice

The USD/JPY did not break the 100 level. The Fed’s lack of tapering is what I think is the cause (or lack of cause). The pair has been trending sideways ever since breaking out of it’s long term triangle formation. At this time it is sitting on the support of the upper boundary of that triangle with mixed indicators. The pair could be range bound until the next round of central bank meetings which begin in two weeks.  I am trading a call this week because the pair is sitting on support and has room to move up until it hits resistance at 100. I do not see this pair moving lower at this time. My target entry is below 99 with one week until expiry.




4. Good Gold Man!


Call/Put = Put

Entry = Above $1325

Expiration = One Week


My Trading Advice

The gold market got the biggest shock from the Fed decision. The metal traded up more than 5% one day and then gave up most of the gains the next. The lack of tapering did nothing to really strengthen the bull position on gold. Tapering is still coming and the economy is still getting better, both are bearish for gold. I am trading a put on gold with a target entry above $1325 with one week until expiry.




5. Oh Apple, You Ran Out Of iPhones!?!


Call/Put = Call

Entry = Below $485

Expiry = One Week


My Trading Advice

Apple reported it sold out of iPhone 5’s (more than 9 million units), that more than 200 million users had downloaded iOS 7 and that earnings guidance was now at the high end of the range.  Apple has done it again, the stock is on the move again and is indicated higher in the long term. Short term the stock is still showing bearish momentum but that is declining and near the zero line. Stochastic is also near extreme oversold levels. The stock should find added support at the short term moving average, about $10 below where it is trading while I write this. I am trading calls on Apple with a target entry below $485 and one week until expiry.



More Tips by the Geek  – 9/23-30/2013 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.


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