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  1. #1
    Administrator Martin Kay's Avatar

    Hot Tip from the Geek – SP500, DAX, EUR/USD 01/06-01/13/2014 !!!

    The first New Year Top Five Tips of the Week from Michael are here.

    Check them out and find which are the best binary trading ideas for this week. Test them on CommuniTraders Binary Trading Platform!

    Originaly posted by Michael Hodges.

    S&P 500 Above Support

    S&P 500
    Call/Put = Call
    Entry = Below 1830
    Expiration = One Month


    This is one of those times where I have seriously considered buying a put because of the chance of some near term weakness. However, because the overall trends are still up I must stick to my guns and make trades in line with that trend. Because the trend is up it makes predicting down moves much more difficult. The S&P is sitting just above support and has a little room to move down which could happen during the week while the market awaits the data. There isn’t much reason to buy into the index (for equity and futures traders) before the end of the week unless the data wave is so good at the start it just can’t be ingnored.

    Long term trends and indicators are bullish on the SPX. Based on past performance, current conditions and expected upcoming events I am still in the buy-on-the-dips frame of mind. The SPX is currently abovce support as I mention before. This support is comprised of the 30 day moving average and the closing level of the market on the last day before the Christmas week. The Bollinger Band signal line is also at this level, following a touch of the upper boundary, adding to its importance. This level should provide adequate support for the markets until the data can come out. I am targetting entry as close to this level as possible for call buying with a one month expiry.



    France Drags On Germany And EU

    DAX
    Call/Put = Put
    Entry = Above 9500
    Expiration = One Week


    The DAX is experiencing post holiday weakness as well. This index could have the most movement of all this week because of the ECB will meet. The bank could increase QE but will most likely keep things the same with statements about sluggish recovery, the support of the ECB and isolated areas of weakness and strength. I am trading puts on the DAX with one week of expiration and a target entry above 9450.



    EURO Bears Out

    EUR/USD
    Call/Put = Put
    Entry = Above 1.3610
    Expiry = One Week


    The euro is losing to the dollar. The EUR/USD pair bumped resistance again last week and woke up the bear. The pair has since dropped below important support levels and is consolidating ahead of the ECB meeting. Unless they take some euro positive action this pair is heading lower. The pair is below resistance with bearish technicals following a confirmed reversal at the top of a long term trading range so I am trading puts. My target entry is above 1.3610 with one week until expiration. My downside target at this time is near the 150 day moving average around the 1.35000 level.


  2. #2
    Legendry Member Michael Hodges's Avatar
    So far four of my trades are in the money. Still got to get past the ECB meeting, employment claims, NFP, unemployment and earnings.....

  3. #3
    Junior Member allanrock's Avatar
    Tomorrow will be the most important event of this week – the non farm payroll announcement. It will generate great volatility and great opportunities to trade binary options after the announcement. We all will wait with interest to see the market reaction and to trade

  4. #4
    Legendry Member Michael Hodges's Avatar
    The NFP was way unexpected. I think it left market heads spinning in wonder. the S&P is down but not bad, lets see what it does by the close.

  5. #5
    Senior Member Deanfx's Avatar
    The effect on SP500 and DJIA was not quite significant so I expect the markets will absorb that news quite quickly and will move ahead without significant distorsion.

  6. #6
    Legendry Member Michael Hodges's Avatar
    Quote Originally Posted by Deanfx View Post
    The effect on SP500 and DJIA was not quite significant so I expect the markets will absorb that news quite quickly and will move ahead without significant distorsion.
    Thats what I think too. However yesterday's decliine is a little disturbing. the good thing is that support is apparent today at the pre holiday level, bank earnings were not too surprising so far and the long term trend is still up. Plus the banks are echoing Alcoa's sentiment that 2014 could be a good year.

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