Tip from the Geek – Top 7 Binary Options Trading Tips List 15-20/10/2012

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Surprising Data Supports Rising Markets

I won’t lie.  I got really nervous last week.  Even though I have  been expecting some market weakness I was not expecting it last week.  Pre-earnings jitters and the financial environment in Europe gave the broad world markets a reason to take pause and they did.  The opening earnings report from Alcoa was not very cheery and added to the short term expectations for a disappointing earnings season.

 

My take is that we have been expecting things to bad for over 2 quarters and we are ripe for some positive surprises.  Over the last 6-9 months the data has supported a slowing world economy and has caused economists, analysts and corporations alike to lower forecasts.  Now we are entering a time (calendar fourth quarter 2012) that has been predicted by these same analysts to be one of improved growth.  The surprising jobless data last week, the surprising and positive earnings reports from JP Morgan and Wells Fargo and Monday mornings positive report from Citi support this theory. 

 

Now, I don’t think the economy has turned the corner and still has a lot of headwinds. I am in no way “bullish” long term for many reasons, but for the purposes of short term trading I still think the markets are going up. The S&P should retest its highs near 1560 set four years ago.

 

1. S&P Drops To Critical Support

S&P 500

Call/Put = Call

Entry = below 1435

Expiration = end of the month

 

 My Trading Recommendation

Last weeks selling dropped the S&P 500 down to its critical support level around 1425-1430. If the S&P drops below this level and confirms resistance I will have to seriously reevaluate my analysis.  The string of improving economic announcement continued today with retail sales and Empire Manufacturing.  Empire Manufacturing was a little worse than expected but a big improvement over last month.  The really good news is the increase in retail sales.  The headline number increased by 1.1%, much better than the predicted 0.6% increase expected by analysts. Even the core number, which excludes gas and automobiles, was better than expected and trending up. The thing to keep in mind is that retail sales are a big component of GDP and this number is already causing economists to upgrade their expectations for the third quarter results. I still think a call on the S&P is good, especially if you get it under 1430-1435.  My warning is that based on last week I am going to wait until later in the week before buying in again.

 

2. I Have Four Words For Europe

FTSE 100

Call/Put = Call

Entry = below 5815

Expiration = end of the month

 

 My Trading Recommendation

My four words for Europe are kick, can, down and road.  Worry over Spain and Greece was alleviated again by the possibility of future good news.  Current headlines now have Spain asking for bail out money next month. Eventually Spain will have to buck up and take some help but for now they have avoided unwanted austerity measures once again. On the Greek front German Finance Minister Schauble says that Greece won’t default and other statements that support keeping the Euro and Eurozone intact.  These two developments should help remove some resistance in the European sector and allow the European markets to focus on the recent rounds of positive news.  Positive developments  in the US and Asia can only help the EU. Last weeks recommendation still looks good and this week I am going to get in again even lower.

 

3. Heng Seng Index

Heng Seng

Call/Put = Call

Entry = below 21,000

Expiration = end of the month

 

  My Trading Recommendation

Surprising export data from China should help drive near term direction. The figures, which were double the expectations of analysts and economists, show that China’s export industry is still alive. This, coupled with positive data from the US and the lack of new negative news from Europe, should help the index retest this years high levels around 21,700.

 

4. The Euro Waits For Europe

EUR/USD

Call/Put = Call

Entry = below 1.2925

Expiration = end of the month

 

 My Trading Recommendation

The Euro has been trending sideways for over two weeks as the recent acts in the Eurozone drama have played out.  Signs are good that despite near term fears the Euro and the EU will remain intact. There is no real solution yet but it does seem as though big brother Germany and other important players are relaxing the pressure a little which is aimed at allowing the troubled nations time to make sustainable changes. The momentum in the Euro versus the dollar is still positive and the currency pair is building support along the short term moving average. My target for the EUR/USD trade is around 1.3500.

 

5. Banking Strong Going Into The Fourth Quarter

Goldman Sachs

Call/Put = Call

Entry = below $122.00

Expiration = end of the month

 

 My Trading Recommendation

The banking sector has been improving by leaps and bounds over the last few years.  So far this quarter I seen no exception.  Big players JP Morgan, Wells Fargo and Citi have all reported results better than expected and I expect the same out of Goldman Sachs on Tuesday.  The stock has been trending up and is a potential candidate for an upside surprise and a breakout. 

 

 

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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 Mihcael’s trading tips are based on AnyOption Binary Options Trading Platform.

 

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