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Binary Options Analysis By GOptions Dec 10,2012

Discussion in 'Major Currency Crosses' started by ciniasaada, Dec 10, 2012.

  1. ciniasaada

    ciniasaada New Member

    Dec 4, 2012
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    Markets were pretty much unfazed by very good employment numbers this past Friday as the US unemployment figure dropped by a surprising amount. The expected rate of unemployment in the US was expected to show a reading of 7.9%, the same figure from last month. But in a dramatic turn of events, the reading came in at 7.7% however, binary options probably watched as the underwhelming markets barely reacted. US markets actually finished with mixed results despite these good results as the DOW closed up 0.62% to 13155. The S&P 500 also finished higher by 0.29% to 1418, still under the critical 1428 level. The Nasdaq was the index that fell on Friday as it lost 0.38% to 2978 and remains below the critical 3000 level.

    The S&P however, is the index to watch today. Binary options traders will want to see if the index manages to provide a trading signal based on a break of the critical 1428 level. However, it is important to note that the resistance at 1420 will be the first to keep an eye. The earlier in the session that this level manages to break puts the 1428 level more and more into play. It is to be expected that binary traders will initially take Up options on a break of 1420 but more conservative will wait for the break at 1428. Depending on the amount of momentum in the break of the 1420 level, we would likely recommend simply waiting for 1428.

    The Nasdaq too is an interesting index to watch today. Hovering just below the critical 3000 level makes this index one to watch today without a doubt. The 3000 level is a resistance considered more important than other for the reason that it distinguishes between an expanding economy and one contracting. With the USD strengthening as well most of last week, it is safe to assume that the US session will open with a flurry. The Nasdaq as a good choice to look at if it does in fact provide a break of 3000 today and binary traders will be quick to take Up options on any break.

    The only concern for the bulls in the market will be the fiscal cliff which has continued to plague the markets perceptions and will likely continue to do so this week. However, this Tuesday and Wednesday, the US central bank, the Federal Reserve, is set to meet for a two day monetary policy meeting. It is not expected to make any changes to the current bond buyout program set to 40 billion USD per month. This is because this past Friday’s NFP data showed an increase of 146k new jobs created in the US economy meaning the storm that hit the eastern US did not really affect the jobs market. This should be seen as good news for the US. Despite the markets wanting the quick fix approach, we think that a non-action by the FED will cause further increases in the US markets this week and binary traders should get ready for it.


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