Tip from the Geek – Top 5 Binary Options Trading Tips List 2/4-11/2013

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Earnings, Data, Rumors and Fear Drive Opening Losses

The opening round of losses this week were driven by fear and rumors.  The economic data and the earnings from around the world have not changed and continue to support the current up trend. S&P futures were down this morning on the heels of weakness in Europe. The release of U.S. ISM and factory orders at 10 AM had nearly no effect on stock prices. Factory orders in the U.S. rose by 1.8%, a bit smaller than expected, but still expansionary.

 

Asian markets fared a little better. They closed mixed on signs that China is still recovering at a modest pace. Chinese PMI grew at a tepid 0.1% to 56.2 in December. This number shows that expansion in the country is still on the rise. Data within the data helps to support the idea that China’s economy is maturing and beginning to shift toward service. Several sectors within the broader PMI number, including services, was above 60. Services are believed by many to be the next big driver of the Chinese economy and this level of growth helps to support that.

 

The big focus of the markets this week will be on Europe. Rumors and fear have crept back into the European Arena and sent their markets sharply lower. The Spanish Prime Minister has been accused of corruption which I don’t find surprising since they are having elections in a few weeks. There is fear that a shift in leadership could derail the Spanish recovery, an event that would surely spill over into other troubled European nations.

 

 

1. S&P Retreats To Support

S&P 500

Call/Put = Call

Entry = below 1500

Expiration = end of the month

 

My Trading Advice

The U.S. markets will not be heavily affected by the news from Europe. Corporate earnings and economic data at home and abroad are still looking good enough to support the rally. Not to mention the fact that the S&P is till lagging the other indexes and has yet to make a new all time high. While this is not a guarantee I think it is highly likely. This week the U.S. markets have little new economic data to digest, about 10 releases compared to last weeks 38, and nothing of real importance. The number one data point for this week in the U.S. will be the unemployment claims figures on Thursday.

 

Last week the S&P 500 broke to new 5 year highs and is currently above 1500. Early Monday the index retreated roughly 10 points but maintained the 1500 level. Long term indicators are still declining, which is of concern for a longer term outlook, but are still bullish. In the shorter term the technicals are the same and the MACD is showing a buy. I believe the U.S. markets will continue to move up in the current month. I am buying monthly calls with a target entry below 1500.

 

 

2.Spain, Spain, Spain

Ibex

Call/Put = Call

Entry = below 8100

Expiration = weekly

 

My Trading Advice

Spanish markets lead the charge downward today. Rumors of scandal in the Prime Ministers office and election fears are the cause. The drop is reactionary and has presented an opportunity for a short term trade. Another reason for the sell off today was a jump in unemployment. Spanish unemployment jumped by over 2.5% in January. This has raised speculation for renewed stimulus in the country. Spain, and the rest of the EU, are still rebuilding and these minor set backs are to be expected.  Other data from the region supports a slight decline in the first quarter and a possible rate cut by the ECB. I am playing weekly calls on the Ibex with an entry under 8100. I had considered monthly calls but I do not want to hold a position over the election.

 

 

 

3. England Falls On Spain And Factory Orders Data

FTSE

Call/Put = Call

Entry = below 6250

Expiration = end of the month

 

My Trading Advice

The FTSE 100 dropped this morning as well. New Factory Orders from the EU and the new developments in Spain both helped with the drop. The index is  nearing the support of 6200, the level of the most recent breakout. I am playing calls on the FTSE with end of the month expiration.

 

 

4. Euro Drops On Stimulus/Rate Cut Speculation

Euro/USD

Call/Put = call

Entry = below 1.3550

Expiraton = end of the month

 

My Trading Advice

The Euro/USD trade was heavily impacted by the new fear and speculation emerging in the Eurozone. This move is counter to the underlying fundamentals and likely to be short lived. The pair has been very bullish in recent months and the technical indicators support more of the same. The Monday pullback brought the trade near to a long term support and a good area for getting into monthly calls.

 

 

5. Hand Seng Has Dark Clouds Ahead

Hang Seng

Call/Put = Put

Entry = above 23,700

Expiration = weekly

 

My Trading Advice

The Asian markets and the Hang Seng did not have the same drop we saw in the European and U.S. equities markets. I feel it likely that the Hang Seng will follow the rest of the world and move lower over the course of the week. I am playing a short term put on the Hang Seng with a target entry over 23,700 and a weekly expiration.

 

 

 

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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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