German Factory Orders October 6, 2014
Binary Options Strategy | Oct 06, 2014 03:43AM ET
Looking at the Monday session, there’s very little to move the market initially, with only the German Factory Orders month over month numbers coming out. Anticipated to be -2.5%, the market most likely affected by this announcement will be the DAX. With that being the case, and the fact that the DAX was closed on Friday, it could be a weird session for that particular stock index. The closer we get to 9000 oh, the more we like buying calls on supportive candles.
The EUR/USD pair fell hard during the session on Friday, testing the 1.25 level for support. That area is of course important overall, as it is a large, round, psychologically significant number. A bounce from there though will have us buying puts, as the market is most certainly negative. We believe ultimately that the EUR/USD pair could go as low as 1.20 given enough time.
The Canadian Ivey PMI announcement comes out, anticipated to be 53.0 for the day. That being the case, we could have movement in the USD/CAD pair, which looks very bullish at the moment as we closed near the 1.1250 level on Friday. With that, we are buyers of calls on pullbacks as the announcement could cause a little bit of a knee-jerk reaction to the downside depending on how it comes out.
The S&P 500 broke higher during the course of the day on Friday, clearing the top of the hammer from Thursday. Because of that, it appears of the market should continue to go higher as the uptrend line held. The 2020 level will be targeted given enough time, but the 1980 level between here and there will begin quite a bit of noise. Buying calls is the only way to trade the S&P 500 as far as we can tell at the moment.
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