Although traders can’t get enough about Facebook and its IPO woes, the real news on Wall Street is elsewhere. Actually the real news is on a different continent as Greece, ever in the midst of turmoil, continues to be the focus of attention for traders. The worst case scenario of Greece leaving the Eurozone and dumping the EUR is of real concern and is keeping buyers out of the stock markets, afraid to take on unnecessary risk. As a result, the major Us stock indices finished rather flat and mixed yesterday. The Dow finished down slightly to 12496, a drop of 0.05%. The S&P 500 and the Nasdaq both managed increases of 0.17% and 0.39% respectively.
The news about Facebook and the legal ramifications behind withholding key information to investors is not what is forcing markets downwards. There are enough reasons for that at the moment and pointing the finger at Facebook is not a good or logical trading idea. Even if the social giant leaves Nasdaq for NYSE, it won’t make a difference to the overall market trends.
Our trading signals on the EUR/USD were correct again and our readers should be very pleased. Profits were had and binary options traders should rejoice. Ok, it was just one trade. But the fact that the USD is getting stronger makes us a bit giddy. The fact is, we really don’t care which way the USD goes, so long as we are on the right side of the trade, which as the EUR/USD fell to 1.2583, is below the support we indicated would break yesterday. Today, we expect more of the same. Expect the market to continue heading down and binary traders would be wise to take Down options on any break of 1.2525.
The DAX didn’t break above the target we expected yesterday. However, the German index is heading towards the lower band of support at 6260 and as such, binary traders should take a close look at Down options today. This is a very significant support and any break could very well usher in a rush of sellers into the market. This after yesterday showed a drop of 2.33% in the DAX. Could we be in for another mammoth drop? We think yes.