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  1. #1
    Administrator Martin Kay's Avatar

    Hot New Tips by Richard – EUR/USD, SLW Weekly Expiry 8/19-26/2013 !!!

    Hi guys,

    The new Richard's Weekly Binary Options Trading Tips ready for you!
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    Originaly presented by Richard Cox.

    In the week ahead, we have another slow data docket, so most of the market’s attention will be centered on any public comments we see from voting members of the US Federal Reserve. On Thursday, we will have PMI and GDP data out of Germany, but this is unlikely to do much to influence markets. Going forward, the key issue will be whether or not the Fed makes the decision to start cutting back on stimulus programs. At the moment, a majority of the market is expecting a reduction of $10 billion in the Fed’s monthly asset purchase program (currently valued at $85 billion each month). A bigger than expected cut-back would be negative for global stocks, and a positive for the US Dollar and Japanese Yen. If, however, the Fed surprises and makes no changes, the Dollar will drop and stock markets will rally to new highs.


    1. Last week’s progress in the EUR/USD has likely run its course, and given the pair’s proximity to historical resistance, the pair is a sell at current levels. Add to this the diverging policy stances at the ECB, and we have set the stage for massive downside in the EUR/USD. This week, look to buy weekly PUT options in EUR/USD at the week’s open on Monday, which should come in near the 1.3340 area.

    2. For stock trades, I will be looking to capitalize on the broad based rally in metals, particularly in Silver which has seen a massive run higher in recent weeks. One of the best ways of playing this rally is through Silver Wheaton (SLW), which has a 1.5% dividend yield, and has recently hit new record in its Silver production. Revenues will be helped by this surge in metals prices and these trends will continues if we see any real weakness in the Dollar after the Fed makes its next stimulus decision. Buy weekly CALL options in SLW on Monday’s open, which should be just under 26.50.


  2. #2
    Junior Member anderson's Avatar
    EUR/USD is really so close to a historical resistance level at 1.3410, which was hit twice on 18 and 19 June this year and today it is the third time. Your entry point could be a bit lower and difficult to achieve in the money this week. I am still waiting to see is there a room for a break of the 1.3400 level or the price will bounce back lower. Tomorrow FED minutes will be one of the very important events for this week and it will give longer term indications for the price of the pair. So I will wait before new trade.

    PS I have a short term call on EUR/USD. We will see the result in two hours

  3. #3
    Specialist Member RCox's Avatar
    Quote Originally Posted by anderson View Post
    EUR/USD is really so close to a historical resistance level at 1.3410, which was hit twice on 18 and 19 June this year and today it is the third time. Your entry point could be a bit lower and difficult to achieve in the money this week. I am still waiting to see is there a room for a break of the 1.3400 level or the price will bounce back lower. Tomorrow FED minutes will be one of the very important events for this week and it will give longer term indications for the price of the pair. So I will wait before new trade.

    PS I have a short term call on EUR/USD. We will see the result in two hours
    The resistance in the 1.3410 region is important and we have seen some upside breaks of this, but the Euro is simply too expensive at this stage for me to to anything but sell it at this stage. The trade fluctuated between gains and losses for most of the week, and was actually helped nicely by the release of the FOMC minutes, which suggested that the central bank is "broadly comfortable" in its plans to start removing stimulus. This, of course, is Dollar positive and the expectation of this type of statement was a large part of the reasoning behind the trade. In either case, I am still highly bearish on this pair and anything resembling a rally should be viewed as a new opportunity to sell the pair. For next week, I will still look to play off of expected Dollar strength, but given the fact that the Swiss Franc was one of the stronger currencies last week, I will shift to the USD/CHF and start building long positions in that instrument.

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    Last edited by RCox; 08-25-2013 at 07:11 AM.

  4. #4
    Specialist Member RCox's Avatar
    The Silver Wheaton trade performed nicely and held in the money for almost all of last week. Most of this activity is being driven by peripheral factors, as the price of Silver itself is experiencing a major rally and has finally broken above the $24 mark. When we look at things from a longer term perspective, this corrective move back to the topside should not be considered as altogether surprising given the fact that the long term trajectory is clearly to the topside but the majority of the activity this year in precious metals as been in the area of extreme weakness. So, this week's stock trade was propelled higher by a few different factors, as the underlying fundamentals at Silver Wheaton are largely supportive as well. But given the strength of the latest rally, it doesnt really make sense to continue with these types of positions, as the risk reward scenario suggests there is more downside risk than upside potential when we looking at things from a near and medium term perspective. The latest upside moves in the metals (in gold as well, above 1340) have been important but we are more likely to start seeing stalling activity that ultimately results in elevated range trading rather than strategies that favor breakout strategies.

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    Last edited by RCox; 08-25-2013 at 07:12 AM.

  5. #5
    Veteran Member Ammeo's Avatar
    Quote Originally Posted by RCox View Post
    The resistance in the 1.3410 region is important and we have seen some upside breaks of this, but the Euro is simply too expensive at this stage for me to to anything but sell it at this stage. The trade fluctuated between gains and losses for most of the week, and was actually helped nicely by the release of the FOMC minutes, which suggested that the central bank is "broadly comfortable" in its plans to start removing stimulus. This, of course, is Dollar positive and the expectation of this type of statement was a large part of the reasoning behind the trade. In either case, I am still highly bearish on this pair and anything resembling a rally should be viewed as a new opportunity to sell the pair. For next week, I will still look to play off of expected Dollar strength, but given the fact that the Swiss Franc was one of the stronger currencies last week, I will shift to the USD/CHF and start building long positions in that instrument.

    Click image for larger version. 

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    That seems to be a very strong resistance. I'll try to place a put if an upside weakness seems to be coming.

  6. #6
    Specialist Member RCox's Avatar
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    We are now seeing the expected move lower.

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