Tip from the Geek – Top 5 Binary Options Trading Tips List 3/18-25/2013

Easy to understand Binary Options Trading Advices. Try them at Home!


Cyprus Bail Out Grabs Attention But Interest Will Soon Fade

This morning, the whole weekend to be more precise, traders were on edge over the proposed bail out of Cyprus banking system. The countries banking sector is grossly underfunded and in need of help. The offer currently on the table proposes to tax depositors, a first in the EU bail out saga and the cause of a major run on Cypriot banks. Not to worry though binary traders. According to my sources within Anyoption and 24Option there is no danger of your binary options accounts being touched. The tax, which is what it is being called, is aimed at savings and checking accounts and is a way for Cyprus to raise money from overseas depositors. I think that this plan, which is scheduled to be amended and voted on Tuesday afternoon (local time), will not be good for Cyprus standing as a banking center and likely not going to happen as currently laid out. I could be wrong, regardless, Cyprus is a small country, their issues are not going to have much impact on Spain, Italy or Greece, and this headline will also pass.


The world markets sold off after the release of the Cyprus news. S&P futures were down around 15-16 points this morning when I got up. Asian and European markets all dropped about 1-2% with the heaviest losses in China and Japan. These markets did not have the luxury of being open as the Cyprus news was tempered. The S&P came off its lows before the opening and started the week down about 12 points. This could be the dip everyone has been waiting for. It will take a day or two of trading to see just where the world markets want to go but I think the trend is still up, the economy is still stabilizing and growing and the S&P has not reached its all time closing high yet.




1. S&P 500 Offering Up A Nice Buying Opportunity

The S&P 500

Call/Put = Call

Entry = Below 1550

Expiration = End of the Month


My Trading Advice

The S&P 500 followed the lead of other world indexes and began the week in negative territory. This knee jerk reaction to the Cyprus bail out scheme should provide a good entry point for weekly and monthly trades. The U.S. market has been expecting a dip for a couple of months now. Many of those looking to get in on that expected dip missed the chance in late February and could be looking to get into this one.


Our own economy is showing more and more signs of strength. Housing and employment data has been improving steadily over the last few months and this week should not be any different. We get a full load of U.S. housing sector data this plus an FOMC meeting, rate decision and statement. The general expectation is for more good economic data, statements from the FOMC supporting that data and a continuing recovery led by housing. I am in agreement with this sentiment and still bullish on the S&P, at least until it gets above 1565-1572, then we’ll have to see. I am trading calls with an entry below 1550 with an end of the  month expiration which gives the trade two weeks to unfold. It may be possible to get an entry well below 1550.




2. Europe Facing Some Cold Hard Truths


Call/Put = Call

Entry = Below 7925

Expiration = End Of The Month


 My Trading Advice

Europe managed to pick itself up off the floor of this mornings session after reports suggested Cyprus was eying other options. These options include a different structure to the depositor tax and alternative source of income. Perhaps they should consider offering a bond sale, I don’t know. The important thing is that this really isn’t a surprise. We knew Cyprus was in bad shape, it took a beating on the Greece credit restructuring. It should be priced in and lets all remember that Mario Draghi has made numerous statements to the effect that the ECB was committed to healing the EEA.


Germany is still expected to grow and lead the EU recovery. This is supposed to be happening now and so far the signs I have seen lead me to think it is. The DAX was one of the hardest hit European indexes today and one of the most attractive trades in that region. I am still bullish on Germany but it also comes with a caveat. There are other signs of EU weakness emerging and the global economy is still subject to the secular bear market top we are approaching. This week I am trading a call on the DAX with a target entry below 7925 and an end of the month expiration.




3. Nikkei Drops Hard On Cypriot Bail Out

Nikkei 225

Call/Put = Call

Entry = Below 12,200

Expiration = End Of The Month


 My Trading Advice

Asian markets have the misfortune of being first to open and first to close. Because of this they felt the impact of the shocking Cyprus bail out plan hardest and were closed before the revised plan hit the headlines. The Nikkei also had added volatility due to the yen trade. The Nikkei suffered the biggest drop, not only in Asia but globally, and is also providing a great entry for calls. Kuroda was indeed confirmed as BOJ governor last week. Abe now has the green light he needs to enact his programs for fiscal stimulus. Expect to hear of plans and moves for QE as early as this week. I am trading calls on the Nikkei this week with a target entry below 12,200 and an end of the month expiration.




4. Euro Succumbs To Selling


Call/Put = Put

Entry = Above 1.295

Expiration = End of the week


 My Trading Advice

The euro fell to heavy selling pressure as investor fear of a plan similar to Cyprus being applied to other EU nations. The drop brought the pair below the support and down trend lines I have been working off of (1.3000 and tops from late Jan into Feb). I’m still bearish on this pair, at least for this week. There are some signs of a possible support zone though it is yet to have any kind of confirmation. There is also chance that some good news could emerge from Cyprus and other ailing EU nations that could support some euro buying. This week I am trading a put with a target entry above 1.2950 and an end of the month expiration.




5. Yen To Move Up


Call/Put = Call

Entry = below 95.50

Expiration = End of the month


 My Trading Advice

I am bullish on the USD/JPY pair. My reasons are Prime Minister Shinzo Abe’s plans and policies, BOJ Governor Kuroda’s support of aggressive easing, a current up trend and a bounce from my 94.50 support line. I am trading calls with a weekly expiration and a target entry below 95.50. Higher entries will likely pay off but for a weekly trade I want to keep it below this level.





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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