The new 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!

Originaly posted by Michael Hodges.

S&P 500 Bouncing Bouncing Bouncing

S&P 500
Call/Put = Call
Entry = Below 1665
Expiration = One Week

The S&P is at a critical technical juncture. The rising fear of tapering has brought the index down to the long term trend. So far the trend line seems to be holding up but light volumes indicate that many traders are still on the sideline. The question of tapering is still on the table and likely won’t be answered until next week. Until that time the S&P is likely to trade within a range defined by the long term trend, near term fear and the resistance of the all time highs.



Yen On The Brink Of Another Slide

USD/JPY
Call/Put= Call
Entry = Below 98.50
Expiration = One Week


The USD/Yen has been winding up for two months. The pair is closing in on the convergence of a down sloping resistance and an up sloping support line, an area ripe for break out. The pair is indicated up on the long and short term charts by both MACD and Stochastic analysis. All that is needed for a full blown bullish stance on this pair is for it to break above the 99.75-100 level. Until then I am cautiously bullish. I am trading a call with one week until expiration and a target entry below 98.50.



Germany Is Still My Pick For The EU

DAX
Call/Put = Call
Entry = Below 8425
Expiration = One Week


Germany is still my pick as best place to ride out EU recovery. Not only has Germany and the EU as a whole shown improvement the new twist to Chinese outlook (optimistic and stable) adds to the chances of a second half rebound. The DAX has recently confirmed resistance turned support at the 8300 level and is now moving up. I am trading a call on the DAX with a target entry below 8425 and one week until expiration.