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.

Earnings Is Once Again Upon Us

S&P 500
Call/Put = Call
Entry = Below 1840
Expiration = One Week

On top of the data, this is also a big earnings week. The official season kicked off last week with Alcoa, who did not inpsire much confidence in the current quarter but did give us a ray of hope for 2014. This week the big banks, and the entire banking sectore almost, is on tap. Expect to see reports from JPM, WFC, BAC, C, GS, AXP, BBT, MS and dozens of small and regional operators. I expect to hear good things, the Banking Index, and most of the individual banks, has been trending up. Even JPM, who has been plagued with nearly $20 billion in fines this year, has broken past resistance with bullish indicators.

The S&P 500 was able to maintain its position above the pre-holiday support level. The indicators are very weak but do not point in either direction specifically. The momentum has bee at or near zero for over a week, indicating a lack of commitment from either side. Data and earnings, providing they as a group do not point to contraction, should help the market find its way. The long term trends are still up so I am trading calls this week. My target entry is below 1840 with one week until expiry.

German Industry Supporting The EU

Call/Put = Call
Entry = Below 9500
Expiration = One Week

If not for France I think the EU would be on much better footing than it is. I mean, even Spain, Italy and Greece are showing some signs of improvement. Data from the region, especially Germany, has been improving along with the U.S. and today earnings from the region helped to support the idea of recovery. The trend in the DAX is still up although it has seen some volatility and softness since the first of the year. Providing the U.S. market does not fall apart. I am trading calls with a target entry below 9500 with one week until expiry.

Euro At Resistance

Call/Put = Put
Entry = Above 1.3650
Expiration = One Week

The Euro got a boost from the bad NFP but I think this is mostly a knee jerk reaction and providing additional entries. The Euro popped up above resistance last week but has fallen back below with the start of the new week. The data and earnings should be dollar positive so I am trading a put on the EUR/USD. If the pair manages to regain the upper side of resistance and stay there I may reverse this position. I am trading a put with a target entry above 1.3650 and one week until expiry.