Binary options traders looking for a solid trend in the market are probably going to be disappointed if they read this article. I simply can’t provide that kind of confidence on days like this. Each of the last 4 trading sessions have gone in opposite directions. Friday was up, Monday down, Tuesday up, Wednesday down, and now Thursday was up again. Thing is, the market isn’t going up and down by small margins; in or around the break even level. US markets specifically are oscillating in a band of about 2.5% at the moment, which is considered highly volatile. Add to this the complete unknowns in Europe, and the next 2-3 trading sessions will likely be very interesting for traders. The Dow climbed higher yesterday but this index as well as the other US indices are still very far away from significant trading signals (supports and resistances of any kind) to warrant a trade recommendation. We simply can’t do that at the moment and as such we need to turn our gaze to other possible trading ideas.
Binary traders specifically, who need a simple trend in place will be hard pressed to find one today. That’s why we have been looking so closely at Google (GOOG) stock lately as it has been one of the few stolid stocks in a solid trend. Problem there is that the trend is down and we prefer to trade stocks in an uptrend. Yesterday we were right in asserting that the pressure on the stock is still down, but our end-of-day Down options did not profit but our shorter term options on this stock did. We had 2 short terms options (30 minutes and 1 hour) and one for the end of the day. So we ended the day up despite not being able to fully maximize on the move. The reason is that the stock rebounded after the break. 556.5 is another chance at redemption on the stock as a break there will allow for a low-risk Down binary option. We would not take a One Touch on this trade as that binary option would be highly risky in this situation.
Apple (AAPL) stock is another good choice for trading today. The stock seems to be ready to break back higher but is still in the range between 530.4 and 577.5 but a break today of the resistance at 577.5 will allow binary options traders to take Up options with relatively low risk. Any break of this level will likely usher in a new wave of buyers and we will likely see a longer term uptrend in place thereafter. This will likely mean loads of solid trading signals for binary options traders on the stock AAPL in the coming days. But first, let’s see a break and move forward from there.