With the Greek elections over now, investors focused their gaze on Spain which recently received a massive 100 billion EUR bailout package. Europe took the news that Greece was likely to stay in the Eurozone fairly well. Of course, many unknowns are still hovering over the issue, but the fact that the right wing parties took control of Greece, should have been a good momentum builder for the stock indices in the US. However, despite the DAX rising by 0.3% and the FTSE climbing 0.22%, US stock indices were mixed. The Dow actually fell by 0.2% to 12741 as the S&P headed slightly higher by 0.14% to 1344. The Nasdaq actually did very well and finished 0.78% higher to 2895.
The real issue for binary options traders now is what the market will do today? Japan’s Nikkei index is falling by approximately 0.66% at the time of writing this and is now trading near 8663.5. Although there are times that the Nikkei provides signals to markets that open later in the day, this hasn’t been the case in recent days. So despite the drop in the Nikkei, it is hard to predict if European markets are the ones providing the impetus for the Japanese declines or the other way around. We are actually thinking that today specifically, the Nikkei is acting on its own. The European markets might actually have another good day despite the focus returning to Spain. The reason most analysts attribute to the dropping Nikkei is actually Spain and its higher bond yields. However, this could just be a “chicken or the egg” situation. As such, most binary traders are probably going to overlook any good news coming from Europe at the moment. The only issue now is really Spain. But the problem for binary traders looking for a trend is that even if Spain’s issue is solved or mitigated, the next issue if Italy. In addition, there’s no way to know if after Italy some other Eurozone country won’t require a serious bailout.
So with no trend in place and no real reason for optimism, what should binary options traders do? Well, for starters, you will probably need to keep away from forex trades for a few days until the picture becomes clearer. So stocks and stock indices are probably a better choice.
The resistance at 12765 is a great BUY signal on the DOW stock index today. That would be our first hope for today’s trading session. Any break of this level would allow binary traders to take Up options with little in the way of risk today.
The S&P is also a good choice for today as the resistance at 1353 looks ready to be broken. It’s not a particularly strong signal but it will do for today. Any break of this level will allow binary traders to take Up options here as well.
It is important to note that our trading signals from last week were very profitable to our traders. In particular, our BUY signal on AAPL (Apple Stock) was very good and worked out perfectly this past Friday.