BinaryOptionStrategy Analysis - page 25
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Solid PMI Data from China and US Energizes Stocks
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Binary Options Daily Analysis – Solid PMI Data from China and US Energizes Stocks
Equities
PMI data from China exceeded analyst forecasts, rising to an 11-month high of 53.1, lifting some Asian markets. The Nikkei rose .3% to 10110, led by car makers, and the Kospi climbed .8% to 2029. Moody’s raised its credit rating on South Korea’s sovereign debt, boosting financial stocks. The Hang Seng slipped .2% to 20522, and the ASX 200 eased .1%, while the Shanghai Composite was closed for a holiday which will extend through Wednesday.
European markets traded sharply higher, as the upbeat news from China, and solid US data lifted investor optimism. The FTSE rallied 1.9%, the DAX climbed 1.6%, and the CAC40 gained 1.1%. The gains came despite a disappointing manufacturing report from the euro zone, indicating the region is in the midst of another recession.
Afternoon Rally Boosts FTSE 1.9%
US stocks gained, with the Dow ticking up 52 points to 13264, the Nasdaq jumping .9% to 3120, and the S&P 500 climbing .7% to 1419.
Groupon shares tumbled 16.9% after cutting its revenue data for the 4th quarter, due to significant customer returns.
Treasuries and Commodities
Bond prices rose modestly, with 10-year notes up 6/32 to yield 2.19%, and 30-year notes up 3/32 to yield 3.33%. In the UK, bonds slipped, with 10-year notes dropping .20 and 30-year notes down .44.
Commodity prices spiked in response to the Chinese data. Crude oil gained 2.1% to 105.19, gasoline climbed 2.4% to 3.3859, and natural gas advanced 1.2% to 2.152.
Copper, which is heavily tied to industrial demand, jumped 2.4% to 3.918. Gold edged up .4% to 1678.50, and silver rallied 1.6% to 32.99.
Currencies
The Yen climbed 1% to 82.03 in a steady day-long rally, and the commodity currencies gained, with both the Australian Dollar and the Canadian Dollar up .8%. The Euro eased .1% to 1.3326, the Swiss Franc declined .2% to 1.1067, while the Pound edged up .1% to 1.6032.
Economic Outlook
Monday’s economic data was mixed. ISM manufacturing PMI rose to 53.4 from last month’s 52.4 reading, slightly above forecasts. However, construction spending unexpectedly fell 1.1%, extending last month’s decline.
Tuesday’s economic data will include auto sales, factory orders, and minutes from the Fed’s last meeting.
Earnings are expected from Comverse Technology and International Speedway.
Binary Options Trading analysis written by Bradley Welcher
FOMC Minutes Suggest No More Easing
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To read the Weekly fundamental analysis click here
Equities
Asian markets traded mostly higher, following Monday’s advance in Western shares. The Hang Seng climbed 1.3% to 20791, and the Kospi gained 1% to 2049. The ASX 200 edged up .2%, as the country’s central bank held rates steady. Lagging behind, the Nikkei slipped .6% to 10050, as the yen spiked to a 3-week high against the dollar, hurting exporters.
European stocks slumped, as concerns over Spanish debt weighed on investors. The CAC40 tanked 1.4%, the DAX sank .8%, and the FTSE fell .4%.
US stocks mostly recovered from their losses, but still ended down. The Dow dropped 65 points to 13200, the S&P 500 fell .4% to 1413, and the Nasdaq declined .2% to 3114. Following the release of the minutes from the FOMC’s last meeting, the indexes briefly tumbled 1%. The minutes indicated it is unlikely the Fed will authorize another round of easing, thanks to an improving economy.
Dow Drops 65 Points but Well Off Lows
GM shares tumbled 4.6% after monthly sales fell short of estimates, despite posting an impressive 11.8% increase.
RIMM shares plunged 9.5% after revealing a plan to offer services to customers of other mobile networks, another indication the company’s Blackberry offering has lost relevance.
Treasuries and Commodities
Bonds slumped as hopes for another round of quantitative easing were dashed. 10-year notes fell 28/32 to yield 2.28%, and 30-year notes sank 1 18/32 to yield 3.41%.
Metals sank as well. Gold tumbled 2.1% to 1644, silver dropped 1.6% to 32.58, and copper fell .9% to 3.8845.
Energy traded mixed, as crude oil dropped.2% to 103.99, while natural gas climbed 1.1% to 2.176 and gasoline gained .4% to 3.3943.
Currencies
The Dollar rallied against global currencies. The Yen fell 1% to 82.90, erasing Monday’s gains, and the Australian Dollar fell .9% to 1.0318. The Pound, Euro, and Swiss Franc all dropped .8%. The Canadian Dollar largely escaped the downtrend, easing less than .1% to .9914.
Economic Outlook
US factory orders rose by 1.3%, slightly below forecasts for a 1.5% gain. Monthly auto sales also fell short of forecasts, as the annual rate declined to 14.4M from last month’s 15.1M reading.
Wednesday’s reports will include the ADP employment report, the ISM non-manufacturing index, the Challenger job-cut report, weekly mortgage applications, and weekly oil inventories.
Earnings are due from Acuity Brands, Bed Bath & Beyond, and Monsanto.
Binary Options Trading analysis written by Bradley Welcher
Global EquitiesTumble on Spanish Debt Fears
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Equities
Asian markets tumbled on Wednesday, as hopes for another round of easing by the Fed faded. The Nikkei tanked 2.3% to 9820, its steepest drop in 5 months. The Kospi slumped 1.% to 2019, while the ASX 200 managed to ease just .1%, as a slide in the Australian Dollar helped exporters. In China, the Shanghai Composite and Hang Seng were closed for a holiday.
Selling pressure intensified in Europe following a weak Spanish bond auction. The DAX plunged 2.8%, the CAC40 tumbled 2.7%, and the FTSE skidded 2.3. Spain sold just 2.6 billion euros in short-term debt, an amount which was at the bottom of its target range, and yields on Spanish 10-year notes climbed to 5.61%.
US stocks fared modestly better, but still closed sharply lower. The Dow dropped 125 points to 13075, the S&P 500 fell 1% to 1399, and the Nasdaq shed 1.5% to 3068.
AIG shares jumped 5.3% after garnering an upgrade from Bernstein.
Sandisk plunged 11% after issuing a profiit warning due to weak demand and abundant supply in the market.
Treasuries and Commodities
A flight to safety lifted bonds, with 10-year notes up 21/32 to yield 2.22%, and 30-year notes up 1 16/32 to yield 3.36%.
Commodities sold off, particularly metals. Silver tumbled 6% to 31.26, copper dropped 3.2%, and gold tanked 2.1% to 1621. Crude oil fell 1.9% to 102.07, natural gas sank 2.5% to 2.133, and gasoline shed 1.6% to 3.3424. Crude oil inventories rose to 9M barrels, blowing past estimates of 2.1M barrels.
Silver Drops 6% as Commodities Tank
Currencies
The US Dollar benefited from the shift away from risk, climbing .7% against the Euro, Swiss Franc, and Australian Dollar. The Yen climbed .5% to 82.42 as traders unwound carry trade positions. The Canadian Dollar declined .6% to .9966, while the Pound eased .2% to 1.5888.
Economic Outlook
The ADP payroll report indicated the economy added 209K jobs last month, slightly more than forecast, but a smaller gain than last month’s 230K jump. On Friday, the government will release the official non-farm payroll report, which is expected to show a gain of 211K jobs. ISM non-manufacturing PMI slid to 56.0 from 57.2, slightly below forecasts.
Thursday’s sole report will be weekly unemployment claims.
US and European markets will be closed on Friday for Good Friday.
Earnings are due from Carmax, Constellation Brands, and Pier 1 Imports.
Binary Options Trading analysis written by Bradley Welcher
US Weekly Jobless Claims Continue to Drop
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Equities
China’s Shanghai Composite returned from a 3-day holiday to rally 1.7%, while most Asian markets traded lower. The Hang Seng fell 1% , the Nikkei slid .5%, and the ASX 200 declined .3%. Sharp gains in car makers lifted the Kospi .5%, as Hyundai Motors rallied more than 4%.
European markets recovered from early losses after the weekly US jobless claims report showed modest progress. The FTSE gained .4%, the CAC40 rose .2%, while the DAX lagged behind, easing .1%.
US stocks closed mixed after a quiet session. The Dow slipped 15 points to 13060, the S&P 500 eased 1 point to 1398, while the Nasdaq gained .4% to 3081. The VIX rose 1.6% to 16.70, up 7.8% for the week.
Volatile Week Ends on a Quiet Note
On the earnings front, beverage maker, Constellation Brands tumbled 12.5% after lowering its outlook, while Bed Bath & Beyond jumped 8.5% after beating earnings forecasts.
Treasuries and Commodities
Bonds continued their advance, with 10-year notes up 12/32 to yield 2.18%, and 30-year notes p 18/32 to yield 3.33%.
Crude oil recovered from Wednesday’s slide, climbing 1.7% to 103.17, while natural gas broke below the 2.10 mark to 2.097, down 2.1%.
Silver advanced 2.1% to 31.69, and gold bounced 1.1% to 1632.40. Copper settled flat at 3.79.
Currencies
European currencies retreated, as he Euro skidded .6% to 1.3067, while the Pound and Swiss Franc declined .4%. The Australian Dollar and Canadian Dollar both rose .3%, and the Yen inched up .1% to 82.36.
Economic Outlook
Weekly unemployment claims declined by 6000 to 357K, slightly weaker than the 355K forecast by analysts. Overseas, Canada’s payroll report showed the economy staged a sharp upswing last month, adding 82.3K jobs. The figure blew past forecasts for a modest 11.3K.
On Friday, the government will release its monthly payroll report, which is expected to show a gain of 211K. The unemployment rate is expected to remain flat at 8.3%. Also due are consumer credit and average hourly earnings.
The stock and bond markets will be closed fin the US and Europe for Good Friday. No major earnings reports are due.
Binary Options Trading analysis written by Bradley Welcher
Stocks Drop as US Data Disappoints
To read the Weekly technical report click here
To read the Weekly fundamental analysis click here
Equities
On Thursday, Asian markets traded mixed following the strong gains in the prior session. The Nikkei declined .8% to 9588, the Kospi slipped .2% to 2000, and the Shanghai Composite eased .1% to 2379. The Hang Seng jumped 1%, lifted by China Life’s 3.9% advance, and the ASX 200 edged up .3% to 4363, its highest close in 8 months.
European markets closed lower, pressured by disappointing US data. The CAC40 tumbled 2.1%, the DAX fell .9%, and the FTSE closed down fractionally. Rumors of a potential credit rating cut for France hit the country’s stocks particularly hard.
US stocks dropped as well, with the Dow shedding 69 points to 12964, dropping below the 13000 mark. The Nasdaq fell .8% to 3008, and the S&P 500 declined .6% to 1377.
Dow Falls 69 Points
Gilead Sciences surged 12% after reporting positive clinical trials for a hepatitis C drug.
Apple shares slumped 3.4% amid fears the company will be unable to meet its sales targets for the iPhone, largely due to supply issues.
Treasuries and Commodities
Bonds traded modestly higher, as both 10 and 30-year notes gained 4/32 to yield 1.96% and 3.12% respectively.
Natural gas tumbled 2.4% to 1.905, as a large jump in inventories sent price tumbling. Gasoline fell 1.4% to 3.158, and crude slipped .2% to 102.50.
Precious metals gained, with silver gaining .7%, and gold inching up .1% to 1651.60. Copper declined .1% to 3.626.
Currencies
The US Dollar traded mixed against global currencies as weekly jobless claims disappointed. The Euro and Swiss Franc edged up .1%, and the Pound rose .2% to 1.6054. The Canadian Dollar and Japanese Yen both fell .4%.
Economic Outlook
Weekly jobless claims clocked in at 386K, 18K worse than forecast. Existing home sales unexpectedly declined, dropping to 4.48M from last month’s 4.6M annualized rate. Continuing the trend of disappointment, the Philly Fed manufacturing index dropped to 8.5 from 12.5.
No major reports are due on Friday. Earnings are expected from GE, Honeywell, Kimberly-Clark, Manpower, McDonald’s and Schlumberger.
Binary Options Trading analysis written by Bradley Welcher
Risk Management In Binary Option Trading
As with all forms of investment, trading in binary options carries a certain amount of risk. Hence, it is essential that a binary options trader has some form of risk management plan. There are several ways that a trader can adopt in order to minimize his trading risk. Here are some of the ways that binary option traders can create a risk management profile.
Risk to Reward Ratio
The fundamental reason for traders to having a trailing stop loss in a risk management plan is because they are able to maintain a constant risk to reward profile with their trade. For example, let’s say a trader decided that he wants to make 8% and is willing to risk a 3% move against him in his trade. Let’s further assume that the market moves by 5%, the trader should also adjust his stop loss upwards by the same ratio in order to maintain the same risk to reward profile.
Traders should refrain from moving their trailing stop loss to a level where the risk to reward ratio is higher than that which they initially decided upon when they entered the market once the market moves. In short, they should stick to the investment strategy that they first decided upon.
Managing Risk Through Portfolio Management
After a trader has build up several positions for their trading strategies, it is crucial that they analyze every position and see if there is a high level of correlation between the different market positions. The reason for this is because if there is a high level of correlation, this could result in an unacceptably high risk level. For example, a trader has a total of 8 positions which are highly correlated. If the market spiral downwards, this would mean all the 8 positions will move in tandem downwards possibly wiping out the trader’s entire portfolio. In short, this is like taking just one position in the market for the entire portfolio. A more prudent strategy for a trader would be make sure that some of his positions can mitigate the risks of the other position that he holds. This strategy is known as hedging the portfolio.
Hedging The Portfolio
Portfolios are considered hedged when a trader’s different market positions are not adversely affected by directional moves in the market. Let’s say a trader has a market position in which he is betting on the S&P 500 Index to rise. The trader can be considered hedged when he has a market position which bet on the S&P 500 Index to drop. This is one way how traders can mitigate their risk in trading.
The key to successful trading is to try and preserve your investment capital so that if today’s trading had not been profitable, you will still be able to trade the following day. A strategy which calls for a trader to bet everything that he has is a sure recipe for failure and should be avoided.
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US Stocks Trade Mixed Ahead of Apple’s Earnings Report
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Equities
Asian markets traded mixed on Tuesday. The Nikkei dropped .8% to 9468, and the Kospi declined .5% to 19163, a 3 month low. Inflation data from Australia came in far below expectations, pushing down the Australian Dollar and lifting stocks. The ASX 200 rose .2% to 4360. China’s Shanghai Composite closed flat, while the Hang Seng edged up .3%, as the Bank of Beijing rallied nearly 4 on solid earnings.
European markets rallied, led by banks, which bounced 2% after Monday’s 3% slide. The CAC40 jumped 2.3%, the DAX climbed 1%, and the FTSE rose .8%.
US indexes closed mixed, as the Dow rose 74 points to 13002, the S&P 500 rose .4%, and the Nasdaq slipped .3%.
Apple shares dropped 2% to 560.28, ahead of its earnings report. After the close, the stock soared 7.8% to 603.81, following another set of impressive profit and revenue data.
Apple's Recent Slide due to Earnings Concerns
Radio Shack tumbled 10.6% after reporting a loss, dropping to its lowest level in more than 30-years.
Treasuries and Commodities
Bonds fell, with 10-year notes down 9/32 to yield 1.97%, and 30-year notes down 23/32 to yield 3.12%.
Crude oil rose .4% to 103.49, while natural gas dropped 1.4% to 1.98, and gasoline slid .9% to 3.159.
Metals gained, led by copper’s 1.3% advance to 3.6725. Gold rose .6% to 1641.60, and silver closed up .9% to 30.80.
Currencies
The currency markets traded in relatively narrow ranges on Tuesday, and the Dollar declined modestly. The Pound edged up .1% to 1.6138, the Euro gained .2% to 1.3189, and the Swiss Franc rose .3% to 1.0977. The Australian Dollar slipped .2% to 1.0299, largely recovering from an earlier drop down to 1.0249, while the Japanese Yen declined .2% to 81.31.
Economic Outlook
New home sales fell to 328K from 353K, dropping less than expected. Home price data was conflicted, as the FHFA home price index showed an increase of .3%, better than forecast, while the Case-Shiller home price index showed an annual drop of 3.5% in prices.
The Fed will issue its rate statement and hold a press conference on Wednesday. Also due are reports on durable goods and crude oil inventories.
Earnings are due from Boeing, Caterpillar, Eli Lilly, Delta, Credit Suisse, Citrix, Corning, General Dynamics, Sprint, Akamai, and Motorola Solutions.
Apple’s Blowout Earnings Lift US Stocks
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Equities
Apple’s sterling earnings reports pushed up Asian markets at the open, but the indexes closed mixed. The Nikkei climbed 1% to 9561, and the Shanghai Composite gained .8% to 2507. On the losing side, the Hang Seng slipped .2% and the Kospi eased .1%.
Mainland European markets rallied on Wednesday, with the CAC40 up 2%, and the DAX up 1.8%, while the UK’s FTSE closed flat. Automakers rallied after Peugeot Citroen and Valeo reported solid profits, climbing 4.6%, and 8.7% respectively.
US stocks advanced, particularly tech shares, following Apple’s earnings report. The Nasdaq surged 2.3% to 3030, the S&PP 500 jumped 1.4%, and the Dow added 89 points to 13091.
Apple shares popped 8.9% to 610 after blowing past analyst estimates. 14 brokerages upgraded the stock.
Caterpillar shares slumped 4.6% despite issuing an upbeat outlook, due to a shortfall in revenue.
Treasuries and Commodities
Bonds closed slightly lower, with 10-year notes down 4/32 to yield 1.99%, and 30-year notes down 13/32 to yield 3.15%.
Natural gas surged 5.2% to 2.078, while crude oil rose .5% to 104.04. Gasoline futures trailed behind, slipping .2% to 3.1526.
Natural Gas spikes nearly 10% in 4 days
Copper gained .9% to 3.7055, while silver fell .5% to 30.58, and gold ended flat at 1644.
Currencies
The Dollar slipped on Wednesday as Fed chairman, Bernanke, reiterated his commitment to additional easing, if needed. The Pound, Swiss Franc, and Euro each rose .2%. The Australian Dollar gained .3% to 1.0353, and the Canadian Dollar rallied .4% to .9836, while the Yen closed little changed at 81.34.
Economic Outlook
Durable goods orders fell 4.2% , far more than forecast, while the less volatile core durable goods orders unexpectedly dropped 1.1%. The Fed raised its projection for economic growth to 2.4%-2.9% from January’s 2.2%-2.7% forecast.
Thursday’s reports will include weekly unemployment claims, the Chicago Fed’s national activity index, and pending home sales.
Earnings are due from Amazon, Bristol-Myers, Chrysler, ExxonMobil, Pepsi, Starbucks, and Zygna.
Stocks Gain on Strong Housing Data
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Equities
Asian markets traded mostly higher on Thursday. The Kospi inched up .1% to 1964, despite a 6.2% drop in LG Electronics, and the ASX 200 gained .3% to 4375. The Hang Seng rallied .8% to 20810, while the Shanghai Composite eased .1%, and the Nikkei closed flat.
European markets closed mixed, as banks fell 2.3% following lackluster earnings from Deutsche Bank. The FTSE and DA advanced .5%, while the CAC40 declined .1%. Automakers extended their gains from the previous session, rising 2.7%, after Volkswagen reported strong earnings, pushing the stock up 7.8%.
US stocks rallied, as the Dow jumped 114 points to 13205, ad the Nasdaq and S&P 500 both climbed .7%.
Dow Tacks on 114 Points
H&R Block tumbled 10.7% to 14.95 after announcing it would close stores and layoff employees to cut costs.
Treasuries and Commodities
The Treasury auctioned $29 billion in 7-year notes with a high-yield f 1.347% and a bid-to-cover ratio of 2.83. Bonds closed higher, with 10-year notes up 10/32 to yield 1.95%, and 30-year notes up 16/32 to yield 3.12%.
Metals jumped, with silver gaining 2.4% to 31.095, and copper jumping 2.2% to 3.782. Gold advanced 1% to 1657.90.
Crude oil rose .4% to 104.55, and gasoline climbed .8% to 3.18, while natural gas fell 1.8% to 2.131.
Currencies
The Dollar declined against global currencies on Thursday. The Pound edged up .2% to 1.6195, while the Euro and Swiss Franc inched up .1%. The Yen spiked .5% to 80.95, and the Australian Dollar climbed .3% to 1.0396.
Economic Outlook
Weekly unemployment claims dropped by 1K to 388K, significantly worse than expectations for a drop to 374K. However, pending home sales surged by 4.1%, blowing past analyst forecasts for a 1.2% gain.
Friday’s reports will include GDP and consumer sentiment.
Earnings are due from Chevron, Coventry Health Care, KKR, Merck, Procter & Gamble, and Weyerhaeuser.
Binary Options Report (April 23- April 27)
To read the Weekly fundamental analysis click here
Markets
Stocks finished higher , with the Nasdaq showing its best weekly gain in almost three months. Despite a better-than-expected consumer sentiment report and a weak despite weak GDP report.
The Dow was up23.69 points, to close at13,228.31. The S&P 500 rose 3.38 points, to close at 1,403.36. The Nasdaq rose 18.59 points, to close at to 3,069.20.
DJIA CHART
FOREX
The dollarpressured this past week. Yet, despite the USD favorable shift in tone and forecasts from the Fed along with the disappointing round of data along with a plethora of headlines that dominated the headlines throughweak, the buck was decisively bearish.As with before, could this be a technical correction? Instead, the dollar mustered the greatest level of momentum amongst all of its most liquid counterparts. The dollar is defying the standard fundamental lines and underlying market conditions. Could it gain again?
USD Chart
COMMODITIES
Crude lost $1.05 to close at $103.50. While gold closed at 1642.70, up $1.90 an ounce.
GOLD Chart
EQUTIES
Amazon surged sharply after they posted Q1 numbers that blew past estimates after-the-bell Thursday. Ford closed lower after the American automaker posted earnings that fell form last year, but still topped estimates.
Binary Options Trading analysis written by David Frank