Halliburton Posts Big Win in Earnings

There hasn’t been a lot of good news coming out of the oil industry lately, and now that the price of oil has once again dropped—this time 3 percent in weekend trading—it looks like there is going to be more bad news coming from this front in the near future. However, there is also good news coming in unexpected places. Halliburton, the world’s second biggest oilfield services company, recently announced their earnings, and they were far better than expected.

Halliburton’s reported earning stood at $0.31 per share, much above what the expected number was: $0.24. This number does not take into account the acquisition of the company Baker Hughes, Inc., which is still pending, but this was already acknowledged in the price estimate of $0.24.

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Watching Treasury Bonds

If you aren’t paying attention to U.S. treasury bonds, you are ignoring a subtle, yet vital, component of how the U.S. economy works. Bond rates are a key component of how the U.S. government monitors and cares for its own health, and by watching what treasuries are doing, you can get an idea of what to expect from other segments of the economy. This is not exactly a precise science, but it is a good litmus test of what you should be expecting from your particular area of focus.

Bonds are an integral part of how the government functions. There’s always a lot of concern about the national deficit, but as long as treasury bonds are managed correctly, there’s very little threat of a default by the U.S. government.

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Looking at the Dow Long Term

For those of us that have followed the major indices over the last several years, we know that the Dow Jones Industrial Average has been climbing steadily. Over the last five years, its price has climbed by 60 percent. This certainly beats the market average that has been established since the end of the Depression of 3 percent per year, per annum.
The more observant traders realize that this absurd rate of growth is slowing, though. In the last 12 months, in fact, the Dow is up only 6 points total, less than 0.1 percent. In other words, growth in this index has been practically nonexistent. The chart over the last 12 months has been all over the place, but in the end, the actual amount of change is tiny. For an index that ranges up near 18,000 points, 6 is a tiny number, almost meaningless.

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Wild Day Ends in Losses

Sometimes, different events will play off of each other and give each other fuel for momentum. These can be positive events, or they can be negative. On Friday, November 13th, the market responded to two different events in a negative fashion. These were oil’s drop in price and the S&P 500 reaching an important milestone when it comes to technical analysis. Let’s take a look at these two events and see how you should approach them with your binary options trading.

The first major event was the fact that crude oil futures fell by over 2.4 percent, over a dollar in price.

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Keystone XL Rejected

One of the news stories that has recently flown under the radar is the fact that President Obama shot down the Keystone XL pipeline. This was designed to move crude oil quickly and safely through wilderness areas, but the pipeline was rejected because of environmental concerns. This is a noble concern, but it does bring up a vital concern: will the oil that was meant to be transported still be able to be moved quickly and cheaply?

First, take a look at the logistics. The pipeline, which was proposed in 2008, before Obama even was sworn into office, was projected to carry 800,000 barrels of crude a day. It was supposed to move oil from Canada and North Dakota to Nebraska, where it could then be moved effectively to refineries on the Gulf Coast.

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Pick the Asset You Like

Knowing how to trade binary options and making wise trade selections are two entirely different things. Trade selection does matter. Each day, there will be excellent opportunities, average opportunities, and poor opportunities. Your goal as a trader is to completely avoid the poor opportunities, and with some time and experience, even avoid those which provide just average odds of finishing in the money.

Many individuals who trade binary options do have certain underlying assets, trade types, and more that they prefer. There are differing opinions on this. Some experts feel that the more that a trader knows about their specific preferred options, the more likely they are to profit. The other line of thought is that preferred options can be limiting, causing traders to miss out on a wide variety of opportunities. Ultimately, you’ll

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Quick Analysis on Oil and Gold

Finding the bottom of a market is every single investor and trader’s dream. This is the moment when prices reach their lowest and the only where that prices can go is upward. This is exactly the situation that many experts have predicted for two of the most widely traded commodities in the near future: gold and oil. We will take a quick look at each of these commodities and let you know whether or not the predictions hold merit or not. Let’s start with oil.

Oil

Oil is the world’s most heavily traded commodity, and it’s at a very low price right now, just under $50 per barrel. Some futures contracts are even trading well below $40 per barrel right now. Prices are down below lows established in 1998, and things have not looked good for the commodity. However, recent price drops have not registered on many technical indicators because of their short lived nature. This could point to the fact that the severe drops in prices were anomalies and not indicative of the actual health of oil’s price. In fact, many charts show upward divergences about to occur, indicating that the bottom has been achieved.

Our long term analysis has long been that oil will go back up. It’s hard to tell when prices will go back up, but this evidence seems to point to the fact that an upward move is about to occur. Whether or not it will be lasting remains to be seen, but prices are much lower than the market warrants right now, so moving upward from this moment seems to be the best move. Establishing trades, particularly with binary options if you do not have easy access to the commodities marketplace, that establish this position will be a good choice.

Gold

Even though gold is not as heavily traded as oil, there’s typically more information out there about it because of the fact that it’s so closely connected to many currencies. Gold, unlike currencies, has an upward direction overall. A lot of the downward motion we have seen in gold is not because it has lost value, but rather because there are more compelling places to put your money right now. The volatility between the U.S. dollar and the euro, for example, has created a ton of opportunities for making quick money in the Forex market. Now it seems that the euro has begun to stabilize, as has the dollar as a result. The U.S. stock market does look like it’s entering a bear phase (although this is still debatable), which could drive the dollar up and gold down, but as of right now, this hasn’t yet happened.

Again, our long term analysis here says that gold will go up. It has done so for a very long time, and although it is connected with a slightly inverse correlation to the U.S. dollar, there is still plenty of room for it to grow even if the dollar does go up comparatively. This becomes especially true if things remain choppy in the stock market and create extra volatility for the dollar and other major securities. Gold is much harder to trade short term than oil, but if you are taking a position trading approach to gold, going long with futures contracts or with binary call options is the correct move. Short term trades need to be taken on a case by case basis for the time being. The longer that the Fed stalls on raising rates, the better able gold will be to keep going up, so keep this in mind as you contemplate taking a position.

Bonds Are Not for Everyone

Trading the Bond MarketAccording to some experts, if the Federal Reserve does raise rates, the correct place to put your money right now is not in stocks, but in bonds. The reasoning behind this is that there is a lot of fear in the market right now, and although stocks are finally starting to rebound, there is far too much volatility for stocks to show any sort of substantial and lasting gains. This is beginning to be reflected in bond yields, and if prices are locked in now before the Fed does finalize a move, you will most likely be getting the best rates you can find for the foreseeable future.

This is only one approach though, and it’s not necessarily the best one for you. Bonds are a good long term investment during rough or uncertain periods of time in the stock market, but they are a long term investment, and not a good short term approach to making money. This is why binary options are so attractive to investors when things are uncertain; you are able to find trends and profit off of them over the short term with small amounts of money. It’s not possible to profit over a short period of time with tiny amounts of cash thanks to day trading regulations and all of the fees and commissions that go along with this, but binaries do not have these same strict regulations.

So, how do you use binaries during the current uncertainties that almost all stocks are seeing right now? First, break it down into small but manageable timeframes. One of the advantages of binary options is that they can be used for very short periods of time and still allow you to easily make a profit without worrying about fees. If you think that IBM’s stock is going to drop considerably thanks to a poor sounding news report that has just been released about the use of personal computers in the workplace, buying a few put options that reflects this fact can be done over the span of a minute or two each. Even if the price only drops a few pennies during the life of your 60 second binary option, your trade will still be a winner. You will profit the agreed upon rate regardless of whether you had a $10 option or a $1,000 option. You cannot do this with the same degree of flexibility with stocks, and you certainly can’t do it with bonds.

While bonds may present an opportunity for investors to profit in an uncertain market, the same opportunity is given by binary options to traders during uncertain or extremely volatile times. Rather than executing a trade and just holding, though, you will need to work on timing. The shorter the amount of time before the expiration, the more precise you will need to be in your timing. This is why many traders like to wait until movement becomes more predictable and the momentum is at its strongest. You should always be using momentum indicators like RSI when you are initiating an ultra short term trade, regardless of the market that you are trading within. This will allow you to see the tiny changes and trends that are always occurring. It will be something that you will need to practice for a while before you can become a pro at it, so use a demo account to minimize risk if you need to.

You don’t need to buy corporate bonds to protect yourself in a volatile market. There’s potential that it will help you profit, but it’s not the only way that you can make money when prices can’t seem to make up their minds.