The new Richard's Weekly Binary Options Trading Tips are here!
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Originaly presented by Richard Cox.

The S&P 500 posted another all-time high as investor confidence remains elevated and the US Dollar Index has moved bullish territory that has not been present in the market for 3 years. For forex traders, this strength is broad best, with significant weekly gains made against the EUR, JPY, CHF, and AUD. Clearly, this is a broad based move for the currency and momentum buying is likely to continue into at least the early part of the week.

1. Moves in the Dollar (while largely expected) have been relatively extreme, and this makes it difficult to find suitable entries for this week. With this in mind, I will look elsewhere, at the EUR/GBP, as the latest rallies are unsupported by fundamentals and are now coming into significant short term resistance levels. I will look to enter into weekly PUT options at current levels, roughly 0.8465, targeting a retracement back into the low 0.84s. Psychological resistance at 0.85 should hold if tested.

2. For stock trades, I will look to play off of the earnings miss in Dell (DELL). Sector reports show the biggest quarterly declines in PC sales since the numbers started being recorded. Shareholder disputes in taking the company private are adding extra costs, and this is not a bullish scenario for the company longer term. Critical failures at Fib resistance (in the mid-14s) add the the technical arguments for PUTS, and the bias is to the downside as long as this resistance area remains intact. I will be looking to enter into monthly PUTS in DELL on a clear break of support at 13.10.