Tip from the Geek – Top 5 Binary Options Trading Tips List 19-26/11/2012

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Futures Up, Markets Up… Expectations Up?

Futures were up significantly Monday morning, a sign of strength that carried over into the start of regular trading.  The statements from Speaker Of The House Boehner Friday afternoon were positive and gave the markets hope for a swift and mutually acceptable solution to the fiscal cliff.  The cliff is still looming but at this point the negotiations are still positive and investors have no new reason to fear it. Any further developments will undoubtedly drive market volatility, negatives to the downside and positive to the upside.  This week negotiations should quiet down as both sides ready themselves for the actual hard dealing and the upcoming Thanksgiving Day Holiday on Thursday. 

 

Other positive developments this morning included some upbeat housing data, a change in dividend payment dates and an earnings surprise for Lowe’s.  Home sales made a nice gain from September’s downwardly revised figures and echo improvements in the sector we have been seeing since the late summer. Wal Mart moved up its announced dividend payment date by a week in order to sneak in under the potential start of higher tax rates.  This move may help keep current investors in and may also attract new investors seeking to gain the payment before the start of 2013. On the earnings front Lowe’s, a supplier of construction and home improvement supplies posted a better than expected third quarter and also raised its guidance for the year.

 

Today’s news plus the impending conclusion to the fiscal cliff have helped the S&P to make a strong bounce from the 1350 level but is it just a dead cat bounce? 1350 is a significant level dating back to early 2006, but other levels like 1380, 1400 and 1420 also had long term significance. The indicators I use, MACD and stochastics, are both showing a weak market but one that may be at a bottom. Based on current MACD, which has a series of increasingly higher bearish peaks, I am expecting the S&P to at least retest 1350.  Based on stochastic the market is over sold in the near and mid terms with growing reason for institutional investors to get back in.  The billions of dollars the US has wrapped up in tax free or tax deferred retirement accounts that is sitting on the sidelines needs somewhere to go. With stock prices low and dividend yields higher than they have been for over six months (and much higher than the meager returns on US treasuries) equities are looking good for the long term.  In the near term there is still resistance ahead and uncertainty concerning the fiscal cliff, Europe, Asia and world growth.

 

 

1. SPX In Play, Bouncing, Bouncing, Bouncing

 

S&P 500

Call/Put = Call

Entry = below 1380

Expiration = end of the week

 

My Trading Tip in 50 Words

The S&P is clearly in bounce mode today, we’ll see how it plays out over the week.  With the week shortened due to the Holiday I think the index will stay below the next upside resistance.  Before the open my upside target was 1380 but trading pierced that level rather quickly so I think my next upside target of 1400 is likely.  I am playing a weekly call on the S&P.

 

 

2. Japan Supported By A Potential Mountain Of New Cash

 

Nikkei 225

Call/Put = Call

Entry = below 9100

Expiration = end of the month

 

My Trading Tip in 50 Words

The Nikkei got a nice pop last week as the yen slid against the dollar.  The increase in the amount of yen needed to buy a dollar helped yen based corporations rise in yen based value.  Today, the Asian markets got a further lift from a positive US fiscal cliff scenario.  Last weeks gains came on high volume which leads me to believe the run could take the index to new highs but may pull back some this week while US based traders are absent for the holiday.

 

 

3. Apple, Bouncing Too….

 

Apple

Call/Put

Entry = below $550

Expiration = end of the week

 

My Trading Tip in 50 Words

Apple is making a nice bounce too.  Friday’s candle signal was a textbook Hammer doji, that if taken Friday afternoon is paying off nicely today.  Apple has a lot going for it despite the criticisms and any global weakness it may be facing.  The stock is way undervalued at this level, driven here by fear, knee-jerk reactions and speculation.  Apple’s bounce may be exaggerated compared to the general market but I’m not sure how long it will last… Apple has been a tricky trade for me as you all may know.

 

 

4. Yearning For Yen

 

USD/JPY

Call/Put = call

Entry = below 81

Expiration = end of the month

 

My Trading Tip in 50 Words

The yen, in my opinion, is in a  longer term slide against the dollar and other major world currencies.  The BOJ has been working hard to accomplish this for quite a while and their efforts are paying off.  The last straw, so to speak, sparking the recent slide versus the dollar, were some comments from incoming national leader concerning “unlimited easing” to help the country battle inflation and a stagnant economy.

 

 

5. Eurodollars or Eurotrash?

 

Eur/USD

Call/Put = Call

Entry = below 1.2800

Expiration = end of the week

 

My Trading Tip in 50 Words

The Euro seems to have reached a support level, at least for the short term.  Europe seems to have its house under control, if not in order, despite the riots in Greece and Spain. The Euro should gain this week,but the rise may not last long.  There is resistance at 1.3000.

 

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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 AnyOption Binary Options Trading Platform.

 

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