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Futures Shoot – Which Binary Option to Trade Monday?

Saturday, December 5th, 2009

U.S. stock futures shot higher Friday after the government reported welcome news on the jobs front, with the unemployment rate dropping to 10% in November.

After tallying tentative gains ahead of the jobs data, S&P 500 futures rose 12.8 points to 1110.8 and Nasdaq 100 futures added 20.75 points to 1801. Futures on the Dow Jones Industrial Average rose 110 points to 10463.

The Labor Department reported nonfarm payrolls fell by 11,000 in November, the lowest count in nearly two years.

The report proved far better than expected, with economists surveyed by MarketWatch looking for 100,000 fewer jobs and the unemployment rate to hold steady at 10.2%.

“The surprising number and turnaround in the labor report is a wonderful holiday present for investors and the economy,” said Todd Schoenberg, managing director, LandColt Trading.

But Schoenberg cautions the jump in jobs is most likely a result of part-time, seasonal employment, and said “investors will want to be prepared for seasonal losses in January and February.”

Gold futures dropped $26 an ounce and oil futures gained 23 cents a barrel.

The U.S. dollar rose against the Japanese yen and euro, but fell against the British pound.

Take-Two Interactive Software Inc. (TTWO) tumbled 31% after a profit warning due to the poor performance of its baseball video game.

Marvell Technology Group Ltd. (MRVL) rose 8.3% after topping analyst estimates with its third quarter profit.

Big Lots Inc. (BIG) climbed 13% after announcing a stock buyback and upgrading fourth-quarter earnings estimates.

Overseas, the Nikkei 225 built on Thursday’s rally, rising 0.5% to top the 10,000 level for the first time since late October.

U.S. stocks slumped Thursday, with the Dow Jones Industrial Average falling 87 points, the S&P 500 falling 9 points and the Nasdaq Composite losing 12 points.

Some of the selling was attributed to caution before Friday’s job report, particularly as St. Louis Fed President James Bullard said the U.S. central bank could raise rates even if a recovery in jobs growth doesn’t emerge.

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Record Weak Dollar and Strong Gold – Trade Gold Binary Option on Call and Dollar on Put Today

Thursday, December 3rd, 2009

Today could be a great day to put money on a binary option trading platform with a short expiration and a fast return. According to Bloomberg:

Gold, little changed after reaching a record in London today, may rise as investors seek protection from a weakening dollar.

The dollar fell as much as 0.6 percent against the euro on speculation the European Central Bank will announce plans to scale back emergency lending while keeping its main interest rate at a record low. Bullion, which usually moves inversely to the greenback, has risen 38 percent this year as the U.S. Dollar Index has dropped 8.4 percent.

“The dollar is a little bit weaker,” Eliane Tanner, an analyst at Credit Suisse Group AG in Zurich, said today by phone. “Momentum is very positive for gold, and weakness in the dollar is expected to go on until the end of the year.”

Gold for immediate delivery gained as much as $10.86, or 0.9 percent, to $1,226.56 an ounce and traded at $1,217.20 by 9:42 a.m. local time. Bullion futures for February delivery on the New York Mercantile Exchange’s Comex unit were 0.4 percent higher at $1,217.60 an ounce after reaching a record $1,227.50.

Bullion may rise as high as $1,500 within two years because of the declining dollar and renewed investment demand, Richard O’Brien, Newmont Mining Corp.’s chief executive officer, said yesterday. Standard Chartered Plc raised forecasts for gold prices.

‘Strong’ Demand

“Sentiment is still upbeat, and investor demand continues to be strong,” said Stefan Graber, an analyst at Credit Suisse in Singapore. “You can’t really fight momentum. The rally will continue into year-end because of enthusiasm in the market.”

Bullion may rise to $1,350 an ounce next year, according to O’Brien, who runs the biggest U.S. gold producer. Standard Chartered now expects gold to average $1,150 in 2010 and $1,300 in the following year. Gold may reach $1,300 an ounce next year, UBS AG said.

The Federal Reserve has kept benchmark U.S. interest rates close to zero percent since December 2008 in a bid to revive lending after the worst financial crisis since World War II. Fed officials acknowledged last month that the record-low borrowing costs might fuel “excessive” speculation in financial markets and possibly dislodge expectations for low inflation.

“Gold is rising to records because investors want to hold it to hedge against inflation,” said Hwang Il Doo, head of the trading team at KEB Futures Co. in Seoul. “Other metals are getting a boost from rising gold.”