Binary Options Report (Dec. 12- Dec. 16)

Sep 8, 2011
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Binary Options Trading analysis written by David Frank - BinaryOptionStrategy

Markets

Wall Street staggered along to the closing bell Friday. They ended up closing out a rough week with modest gains in technology and little movement in the Dow.

Traders had to contend with yet another ratings agency warning on debt, while the quadruple witching scenario, in which four key options and futures contract expire, brought more volume to the market but little in the way of gains.

The Dow closed done 2.42 at 11866.39, the NASDAQ was up 14.32 at 2555.33 and the S&P 500 rose 3.91 to close at 1219.66 forthe week.

DJIA CHART

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FOREX

Sharp Euro declines left it below the psychologically important $1.30 mark for the first time since January. This is leaving momentum sharply to the downside ahead of the final two weeks of 2011. Traders showed little hesitation in selling the EURUSD. We see relatively limited scope for continued volatility into the final weeks of the year, but anything can happen on headline driven price swings.

The final two weeks of the year are unlikely to see any major price breakouts, and indeed the EURUSD could very well consolidate until the New Year. The Forex Options market volatility expectations have fallen into Friday’s close with 1 week currency options now at the smallest currency ranges since the summer. Second tier economic data could perhaps force modest reactions on any surprises. It is not likely to be a week of sharp breakouts or pronounced currency trends.

EURUSD Chart

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COMMODITIES

Crude fell 34 cents to end at $93.53 in New York. The market fell as low as $92.52 earlier in the day.

Brent crude, which is used to price foreign oil that’s imported by many US refineries, fell 25 cents to finish at $103.35 a barrel in London.

Goldwas up $19.80 to $1,597 an ounce at the Comex division of the New York Mercantile Exchange. The yellow metal traded as high as $1,603.50 and as low as $1,572.10.

Gold Chart

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EQUTIES

Ista Pharamceuticals jumped on a takeover offer of about $6.50 a share from Valeant Pharmaceuticals, a bid that Ista said “significantly undervalues” the company.RSC Holdings surged after rival United Rentals made a $1.9 billion offer for the company. Cameron International said BP had agreed to indemnify the company for current and future compensatory claims associated with the Deepwater Horizon incident.