Binary Options Signals Issued On Oil Prices and The Dow Jones

Binary Options Signals Update

S&P 500 companies fell on Monday, led by health-care and utility stocks as concerns over Greece grew and traders prepared for more earnings from some big US corporates including Coca Cola, TimeWarner and MetLife.

The S&P 500 Index dropped -0.42% by 4pm in New York while the Dow Jones Industrial Average finished lower by -0.53% and the Nasdaq dropped -0.39%. Hasbro Inc, hit a new record after the company recorded 4Q earnings that outperformed analyst predictions.

Stock markets were within all-time highs as markets opened on Monday but they were unable to sustain last week’s rally as the total number of shares traded on the exchange dropped 8.5% below the three-month average.

Crude oil futures fell back somewhat after the commodity rebounded by over 5% last week. A stronger dollar across the board helped put pressure back onto commodity prices and also hurt some major multinational companies, whose earnings are predominantly in US dollars.

Greece

Taking center stage on Monday was news that new Greek Prime Minister Alexis Tsipras would start negotiations to put an end to austerity policy measures. Traders are currently disliking the uncertainty created by the Greek situation and there is concern that the new approach could cause problems within the international community, particularly among Greece’s creditors.

Meanwhile. there were also developments in Russia, whose foreign minister spoke of concern relating to the supply of Ukrainian arms and that doing so could lead to an escalation in conflict. US President Barack Obama attempted to reassure listeners that the US was continuing to examine all options available.

Dow Jones Industrial Average – UP

A drop off in the stock market was not unlikely on Monday with little of importance on the economic calendar and after last week’s move higher.
With important earnings reports scheduled for later in the week, volume was lower than usual and the main stock indexes finished with mild losses. Binary options brokers had Dow Futures rising as markets traded overnight.

It was a difficult day for technical traders too, as the Dow traded in a tight range with a lot of sideways, choppy price action. Things will no doubt pick up on Tuesday and binary options traders should prefer to bet UP, sticking with the most recent trend.


Oil – DOWN

There was a sharp short squeeze in oil last week which took futures past the $53 level. The move higher might be enough to convince traders that the bottom has been formed, however, it would be very dangerous to use this as an opportunity to go long.

Now that oil has moved off it’s short-term oversold position, we will likely see some more short sellers come back in. The commodity will likely re-test it’s lows before we see any substantial move lower.