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By: Adam Stone
April 2nd, 2014 7:25am GMT, London UK

The slight recovery seen in the equity markets over the last few trading sessions is something of a bright spot in an otherwise murky and negative overall economic picture. The GDP outlook based on world growth figures looks rather grim and the fact that binary options traders are able to once again join the masses and take up options is nothing to scoff at. The recent uplift in stock prices has spilled over into Asia which is still a bit surprising after a decidedly bleak outlook regarding the Chinese economy. Without the forerunning engine, the Chinese manufacturing sector, the entire Asian economy looks to be “at risk” and as such, it is a positive development to see confidence in stocks in the Japanese and Hong Kong markets.

The NIKKEI closed its session just minutes ago after rising 1.15% to 14962 and looks to put pressure on the 15k level again. The NIKKEI recently dipped below the 15,000 level and binary options traders were relatively speaking, no where to be found. Binary traders have been known to steer clear of downward moving indices in the past 16 months, so this is nothing new. But an opportunity is an opportunity and such breaks should in fact be taken advantage of. Nonetheless, the break to the upside is now back in play, and should drag the binary options traders who have chosen to walk away from the laggards. However, the overall move higher over the last 5-6 trading session is probably completely being ignored. As such, the best strategy for taking advantage of the recent NIKKEI movements is without doubt, looking for both sides of the break potential.

For starters, the upside potential, far superior in effective trading strategy potential, is looking to break above 15000 today. Look for a break higher to take Up options and this would be considered a fairly low risk move. However, with the overall trend moving higher but a very strong move lower late in the session which sent the index back below 15k, binary options traders may wish to break with the traditional approach and opt for a downtrend strategy. Namely, opting for down options on the local supports at 14800 looks like the most likely and highest potential move for the day. While slightly far away from current levels, the NIKKEI is well known to be able to push 1% and even 1.5% higher (or lower) with relative ease.

This volatility could lead to a break in either direction and binary options traders should be ready for anything when it comes to the NIKKEI.

NIKKEI 2-4-2014

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Adam Stone
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Adam Stone

As COO of GOptions, my first and foremost goal is to provide traders with the most up to date info from the markets. I have been trading the markets since 2004 and have been involved with stocks, binary options, and forex trading since then. I have had no formal market education and pride myself on a self taught approach to everything related to trading. I try to focus though on both the technical and fundamental aspects related to each trading day and bring forward the most important aspects of risk/reward in the market.
Adam Stone
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