Weekly Binary Options Trading Briefing 3-10/12/2012 – Corporate Earnings and Holiday Retail Sales to Take Central Focus

Binary Options Trading Recommendations for the upcoming week –  Market Information and Trading Tips

Equity markets had a generally positive week, with the S&P 500 posting its longest rally since September, and the German DAX seeing its 6th consecutive monthly gain at the close on Friday.  Overall sentiment is being helped by the lack of political obstacles in the Fiscal Cliff discussions but with relatively little to be seen in the way of substantive developments, investors found encouragement in the decision in Germany to approve the next round of loan funding for Greece.


Economic data was largely positive as well, with October Durable Goods Orders in the US surpassing analyst estimates, and the country’s third quarter GDP reading, which showed a rise of 2.7%, well above the 2% forecast that was anticipated in the preliminary estimates.  Consumer Confidence surveys were also released during the week, and showed that general sentiment is at the highest level in over 4 years.  So while numbers like this are usually disregarded by shorter term traders, there will likely be more of a difference now, as these figures indicate potential strength for the holiday shopping season that will continue into December. 


Attention to Turn to Corporate and Retail Performance Numbers

     So, looking ahead, attention should shift to the remaining corporate earnings releases and the performance in Retail Sales that is seen through the end of the month.  Since sales numbers from Cyber Monday brought some signs of optimism after the disappointing Black Friday sales, the stage could be set for a positive month in equities.  Specially, overall revenue from online orders rose by nearly 20% from what was seen last year, with the average individual order price showing gains of 8% as well. 


        Throughout the day, online retailers received nearly 2 orders per second, which is roughly 4 times the amount of traffic that is seen on average, and this bodes well for companies directed at this type of sales approach.   Both eBay and Amazon saw rallies of more than 5% and if this year’s Cyber Monday is any indication of how consumers are likely to start making their larger purchases (online, rather than at Black Friday-type in store sales events) this could be an early indication of what is a very bullish scenario for these companies.


My Trading Recommendations in 50 words:


1.Last week’s rally in Oil completes another series of higher lows and with manufacturing in China and the Eurozone showing improvement, I will be looking to enter into 1 week CALLS if prices trade at 88.50, looking for a medium term break above $92.50.  Shorter term, caution should be exercised if we see major declines after hitting the 90 level, as this could be a stalling point.


2. The latest sales performance in Cyber Monday presents some very bullish arguments for online retailers and with many company’s overvalued on an earnings basis, I will be looking to get into one month CALLS in eBay at current levels (above $50).  With a price to earnings ratio of 18, the company is well positioned to capitalize on the changing behaviors of the American consumer.



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