What the Fund Managers are Doing

One of the many surprises that has come along with a Donald Trump Presidency is that hedge and mutual fund managers are shifting their focus on what to include in their portfolios right now. It is expected that inflation will occur at a faster than normal pace now that Trump has won the election, and already we have seen stocks move upward at a faster than normal pace as a result of this. This is happening, in part, because fund managers believe that stocks are the better alternative over bonds. This is especially the case with mutual funds as they often turn to corporate and government bonds in order to hedge against losses when the stock market is more volatile than normal. Leading up to November 8th, that is exactly what we saw happen across every major index in the United States. And now, fund managers believe that with normalcy in the marketplace, they need to get well positioned for the next phase of growth. (more…)

Earnings Season Hits Full Swing

As the next round of profit reports comes across the United States, there is growing concern that companies are earning less than what they were expected to. This is leading to dropping stock prices, and causing investors to fear that another major decline in the stock market is upcoming. Already in 2016, stocks had dropped by about 10 percent, and now that recovery has been obtained, people are cautious that this will happen again. This is a realistic fear, and as we prepare a binary options trading strategy, keeping this general picture in mind will allow us to make more accurate decisions, especially if we have a focus on timing our trades to take advantage of the likely ups and downs that earnings announcements will cause. (more…)

A Look at Google’s Suppliers

Looking at rumors isn’t always the most worthwhile activity when it comes to the stock market, but when a rumor gains a foothold in the public’s eye, it needs to be examined, even if it isn’t necessarily true. A rumor can sway markets just because of the strong psychological impact it can have on people, and this alone can make a pervasive rumor move prices, regardless of the facts behind it.

One of the rumors currently circulating is that the Google division of Alphabet is planning on dropping Intel’s server chips, and begin using Qualcomm. Intel is a common name in much of the world, and they have done a huge amount of business with both individual consumers and big businesses, but according to sales reports, the number of personal computers being bought each year is currently on the decline thank to the rise of smartphones and tablets. This has hurt Intel a bit, who has seen their stock drop from a one-year high of over $35.50 to their current price of $28.64. (more…)

Is the USD Still Strong?

The U.S. economy is having major issues right now; all you need to do to confirm this is look at what the stock market has done over the last two weeks. But there is some silver lining to this: Europe’s economy is doing even worse over the same timeframe. The S&P 500 is down about 8 percent over the first two weeks of 2016, but major European indices are down around 10 percent over the same period. The German DAX is being hit the hardest, with losses closing in on 11 percent. At the same time, the British FTSE 100 is being hit far less severely, with losses of only about 6 percent throughout the first 10 days of 2016.

This is something that currency traders must take careful note of. The old nugget of wisdom that says when a stock market goes up, the dependent currency necessarily must go down needs to be reexamined. The U.S. economy’s failures should, (more…)

Fed Impact Already Here

For months, traders have been worrying about what will happen if and when the Federal Reserve raises interest rates. This psychological factor has already manifested into trading habits, so in effect, the impact of a rate hike has already been partially felt. Traders and investors alike have been far more cautious than usual, driving down prices intermittently. This was exactly the impact that a rate hike was expected to have, and as such, when the rate hike is announced, the damage should–theoretically–not be nearly as bad as it was originally expected to be.

The Fed is expected to raise interest rates sometime next week. This is not a definite occurrence yet, only a highly probable event. The good news is that much of the damage that will be done to short term asset prices has already been done. (more…)

Yen Gains Momentum Against Euro

Of all the combinations that the four major currencies can make, one of the most neglected is the EUR/JPY. Trading the euro against the Japanese yen also happens to be one of the most interesting currency pairs out there right now, in both the traditional Forex market and as a binary options trade.

The reason why this pair has so much appeal and interest right now is because it looks very weak from a structural standpoint. Both European and Japanese central banks have had recent flip-flops of policy and opinion, and both have been struggling on the international front against other currencies. Just look at a chart of either of these currencies in comparison to the U.S. dollar right now if you need any further evidence of this. (more…)

Gold Down More than 10%

Gold prices fell yet again over the last full week of November, pushing them down now six weeks in a row. Gold prices have now dropped about 10 percent off of their high, and as speculation about the Fed raising interest rates continues, more and more people are moving away from investing in gold, and putting it in other places, mainly the U.S. dollar.

Cash and gold have had an interesting give and take over the last several decades. As one goes up, the other tends to go down. In the middle of all of this is the U.S. stock market, which has seen its share of fluctuation over the last six weeks as well. (more…)

Chinese Yuan Set for a Big Day

The International Monetary Fund is expected to announce that the Chinese yuan will be added to the reserve fund. Only four other currencies are currently in this group: the U.S. dollar, the euro, the Japanese yen, and the British pound sterling. This announcement is likely to spur a buying of the yuan, but whether or not this will be done in relation to the big four currencies is not yet clear.

However, an immediate positioning of the yuan against weaker currencies, especially those with lower volumes traded, could be a profitable short term venture, especially if they are timed correctly with binary options. There will still be the normal oscillation that is present in any asset’s price chart, but the overall trend of the yuan is likely to change, and that will give traders a much higher likelihood of success when these two concepts are both taken into account. A clear trend, backed by strong fundamentals, can be a powerful tool in any currency traders—whether Forex or binary options—bag of tricks. (more…)

Trading this Week’s Earnings Reports

One good way to get a jump start on your trading week is to look at what companies have big events lined up for the coming week. This week, there are a handful of major companies that have earnings reports that will be released, with Facebook and Disney being the headliners. Watching what happens before and after these announcements is exciting, but it also creates a great money making opportunity if you are able to get a good gauge on what will happen, and how traders will react to the possible situations.

Both of these companies are typically included in any asset list by the major binary options brokers. That makes the short term trading of these companies much more easily accessible to the average person. The day traders and high frequency traders that like to take advantage of these things will still have their opportunities, (more…)

S&P Trading Strategies that Work

One of the benefits of trading binary options instead of only trading Forex is that you’ll be provided with a more ample variety of underlying assets. Among the many options provided by your broker will be the S&P 500 index. This index happens to be among the most actively traded, which means that there will be no shortage of information in relation to it. Offering a high level of volatility, this index can be a prime choice for trading profitably.

There have been some lofty forecasts in relation to where the S&P 500 may top out at during 2013. Whether you believe the prognosticators or not, there is plenty of reason to pay close attention to the movements of this popular index. By generating the correct prediction and taking action sooner than later, you should be able to generate substantial profits using reasonably low investment amounts. Corporate earnings are among the most important elements. (more…)