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TAPERING FEARS

ALIBABA 98.255 20:45 23.01
GBP/USD 1.25057 20:40 23.01
BitCoin/CNY 6351.435 20:30 23.01
WELLS FARGO 54.405 20:30 23.01
TOYOTA (US) 118.250 20:30 23.01
COLGATE-PALMOLIVE 67.585 20:30 23.01
FERRARI 61.165 20:30 23.01
TSX 60 916.940 20:30 23.01
ALIBABA 98.210 20:30 23.01
BOEING 157.820 20:30 23.01
AUD/USD 0.75746 20:30 23.01
AUD/JPY 85.603 20:30 23.01
GBP/USD 1.25058 20:30 23.01
GENERAL ELECTRIC 29.645 20:30 23.01
S&P 500 2264.620 20:30 23.01
JP MORGAN CHASE 83.745 20:30 23.01
SILVER 17.171 20:30 23.01
AIG 65.535 20:30 23.01
USD/CAD 1.32506 20:30 23.01
GOLD 1215.815 20:30 23.01
DOW 19792.84 20:30 23.01
AUD/CAD 1.00366 20:30 23.01
DOLLAR INDEX-MAR17 100.135 20:30 23.01
3M 178.245 20:30 23.01
GOLD VS SILVER 70.8022 20:30 23.01
CITIGROUP 55.895 20:30 23.01
CITIGROUP VS AIG 0.85303 20:30 23.01
McDONALD'S 121.320 20:30 23.01
LAS VEGAS SANDS 55.485 20:30 23.01
EUR/JPY 121.465 20:30 23.01
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taperingTaper watch has begin after last night’s release of the Fed’s meeting minutes suggested that despite popular opinion, tapering could begin much sooner than previously expected. After recents comments by Federal Reserve officials, it was considered a foregone conclusion that the quantitative easing currently pumping more than 80 billion USD per month into the economy, was here for the foreseeable future. Well, think again. Binary options traders should read the map in front of them very carefully. Basically, the worry watch is on as has been the case a number of times over the last few months.

But now the picture has become murkier as comments are flying around making investors worry more about what the actual message is as opposed to the implications. After all, what are we as traders supposed to rely on? The meeting minutes which are a direct acknowledgment of the fears and suspicions circulating in the market as well as the Fed itself or from the easing friendly comments made by Yellen and Bernanke alike. While possible that the reasoning behind the comments made in the minutes are now outdated as they occurred over a month ago while the comments made were just days ago and as such, the mindset of Yellen and Bernanke is simply more inclined to keep pumping that cash in because it’s needed, it seems that the mixed message is a serious issue now.

Binary options traders will need to rely on quick trading techniques to navigate the rough waters in the markets today and probably for the coming sessions. Obviously the fact that the tapering may begin much earlier than anticipated is wreaking havoc with forex pairs like the EUR/USD. The paid has dropped and fast in recent hours and may continue to do so. Binary options will be looking for downside exposure as the day progresses. The reason for the increase in value of the USD is due to the quantitative easing of the US. By pumping this much money into the economy, the Fed is in essence creating inflation and as such, the dollar is devalued. The devaluation of the USD has gone a long way to pushing US stocks higher so if the Fed suddenly stops this process of devaluation and inflation ceases, then the USD rises. If the USD starts to go on a tear now then the immediate effect will be downside pressure on stock indices as it becomes more expensive for foreign investors to get involved in the US stock markets.

These are obviously only the immediate and direct effects. There are many more but for now, these is what binary options traders need to chew on for the day ahead.

Other than the Initial Jobless Claims in the US today, no major news can be expected. Binary options traders will thus focus almost entirely on the charts.

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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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