US markets fell again yesterday, as did commodities and the EUR. The reason is, serious concern over the Greece bailout, which looks to be falling apart at the moment. After elections were held 2 days ago in Greece, a government has been barely formed. This new pressure is now threatening to scrap the bailout deal. According to Yahoo Finance “Radical leftist Alexis Tsipras meets the leaders of Greece’s mainstream parties on Wednesday to try to form a coalition government, an effort seen as doomed after he demanded that pledges made in exchange for an European Union/International Monetary Fund rescue package be torn up. Officials estimate Greece could run out of money as soon as next month if it does not stick to the aid package terms, which kept the country solvent and in the single currency bloc.”
As a result of this pressure on world markets, the Dow dropped 0.59% and is now under the critical 13000 level at 12932.The Nasdaq, which fell beneath the 3000 level last week already, is now at 2946 and the S&P is now at 1363 after a fall of 0.43%. Gold is now below 1600 and we missed this one yesterday. The fact is, the commodities markets are feeling serious downward pressure as the world economy looks to be in peril and many investors who used to turn to the safe haven commodity, are now feeling that Gold’s value isn’t at the same level as it used to be and it’s too difficult to decide if its value in USD is real or not.
560.5 could be a good time to take a Down options on Apple (APPL) today as the stock has been hit hard by the fears of yet another global slow-down. The fact is, the stock has been severely hurt since announcing its quarter 1 earnings report. But it’s report was actually great which leaves us wondering, why the drop in APPL stock price and why is it such a strong drop? From a technical standpoint, there is no reason to be optimistic about the stock as it has shown a full month of dropping prices with 8 up days and 17 down days. Volume has also been fairly low in the last days of trading and this doesn’t bode well for the stock. Again, we expect another drop in prices below 560.5 and this should allow binary options traders to take Down options with relatively low risk. This outlook does not coincide with our general optimistic expectation for the stock for the long term. However, binary options don’t need to suffer the ups and downs of a long term trend but rather the immediate results of the day ahead. This strategy keeps us out of trouble with binary options trading.
- APPL with DOWN options at 560.5 for binary traders today