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My name is Martin, from Cape Town, ZA. I'm the Co-Founder and Chief Editor of the growing Traders Community. I've an experience of over 8 years in Forex as a Portfolio manager, Trader and guest writer for many financiel and forex websites such as,... More
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  • Japanese Yen Still Gaining On The USD

    The Yen seems undeterred by the agreement that the Republicans and Democrats reached in Congress last week, and keeps posting modest gains over the US dollar. The numbers themselves are not impressive, but binary options traders should treat them seriously, because they marked the reversal of a recent trend. For a couple of weeks, the USD/JPY hovered above the 100 line but last week it closed below 97.7 and it is very likely for values below 96 to be reached this week.

    Live To Fight another Day

    It is clearly a mistake to assume that now that the US didn't default on its debt, all problems are washed away, or that a similar situation won't occur anytime soon. The agreement is only valid for a couple of months and even though the government shutdown and the debt ceiling issues were momentarily resolved they will resurface at the beginning of the year. Keep in mind that the holiday will precede that moment and lawmakers have serious problems in making mutually beneficial deals. We are very likely to have the same circumstances in early January and binary options traders should take advantage of such a context.

    The Japanese Yen didn't post the same impressive gains as the British pound, and the main reason is the fact that the Japanese economy didn't provide any groundbreaking numbers. The current week is not going to change all that, but there are a couple of events that have the potential of moving the market into one direction or the other. The trade balance which was released on Sunday night, reveals the fact that the economy posted minor improvements and the trade deficits have been reduced by a narrow margin.

    What to Look For On Both Sides of the Ocean

    Given the minor impact on the trade balance numbers, and the equally impressive numbers revealed on Monday by the Industries Activities, there is nothing to look forward to until Thursday. Binary options traders need to make a difficult decision, but if they are to maximize their profits this week they shouldn't wait three more days before buying call options. The Japanese Yen is still gaining on the US dollar and as long as these expectations are not set too high, call options could easily finish in the money.

    A potential market mover on Thursday is the Tokyo Core CPI followed in less than half an hour by the Corporate Services Price Index numbers which are both expected to be positive. They will probably not shake the dynamics of the currency pair, but neither will the American Non-Farm Payrolls which are scheduled to be released before that. This is the event that traders should emphasize and if the numbers are mediocre or bad, they should trigger the immediate purchase of call options.

    Oct 29 12:13 PM | Link | Comment!
  • JPMorgan Chase Is Still Underpriced

    For consecutive months, J.P. Morgan Chase posted solid gains and the stock price gained 20% in June and July. What happened next was not necessarily a market correction, but the result of declining consumer confidence as the bank was mired in a string of scandals. The question that binary options traders should be asking right now is whether they should take their chances and back JPM or wait until the end of the year and see how these scandals will affect the bank.

    A Hidden Opportunity to Invest

    Savvy binary options traders and stockholders alike see opportunities where others only see obstacles and this is exactly what we have right now with J.P. Morgan Chase. The London Whale scandal set them back $6.2 billion and more importantly damaged the bank's reputation and this is only the tip of the iceberg, with plenty of minor scandals hurting the image. Some of them have been settled, others are still brewing and there is a lot of uncertainty surrounding J.P. Morgan Chase, which explains why the number of bears has increased sharply.

    The next scandal could cost the bank $11 billion after an outrage related to inferior mortgage securities has resurfaced. All these reasons should suggest that this bank is too hot to be handled and its stock's price would go downwards in the next couple of months. Despite the scandals engulfing them, J.P. Morgan Chase still generates a lot of profit and investors are more concerned about the cold numbers than the bank's image. The fact that their stock is still underpriced at least as far as mega caps are concerned, is a stronger incentive to buy JPM than the scandals are a deterrent.

    A Slight Edge over the Competition

    J.P. Morgan Chase competitors are definitely cheering at their recent struggles and legal issues, but in the market they failed to capitalize on this unexpected advantage. In fact, JPM proved to be more effective in addressing the numerous changes that the banking industry is undergoing and recorded better revenue than these rivals. They make a healthy $14 billion per year in interest income, remarkable numbers given the unfavorable interest rate environment of today.

    Binary options traders couldn't care less about the dividends offered by J.P. Morgan, at least not directly but these numbers have a direct impact on the stock price. The bank offers dividends on par or slightly higher than its main competitors but the most important thing is that unlike some of these rivals, they can sustain this rate. Two months ago JPM stock traded at $56 per share but the price sank to $52, so binary options traders should contemplate a return to the high values of early August.

    Oct 16 10:28 AM | Link | Comment!
  • September Is Another Big Month For Apple

    The first half of 2013 was disappointing for Apple whose stock lost $300 from an all-time high of $700 per share to slightly below $400. Obvious signs of resurgence were noted by investors since then, with August marking a new high of $500 per share only to suffer another dip in the final week. We'll soon find out whether this was merely a correction or the uptrend has ended sooner than expected, what is certain is that September promises to be an important month for the Cupertino giant.

    Iphone 5S to Be Released In a Few Days

    Both Apple bears and bulls are looking forward for next week's event, as they have plenty of arguments in favor and against the announced release of the next smart phone. The company did a brilliant job in keeping these specifications secret, although enough rumors have transpired in the media to make some educated predictions. To start with, this new smart phone won't be a steep departure from iPhone 5 and the most significant changes will be under its wood, with the appearance remaining virtually unchanged.

    Binary options traders should wait for two or three days to see whether the stock bounces back above $500 or if the slide continues. As soon as it dips below $480, they shouldn't waste more time because consumer sentiment is going to weigh heavier in the balance and the release itself. Binary options that expire one week from now should capitalize on this sentiment, well before the release of the next iPhone will have any concrete effects. The smartphones industry is heavily polarized and many specialists are affected by prejudice so the media will be buzzing with contradictory reports in the next days.

    The Effects of the Iphone Trade-In Plan

    An important initiative is the iPhone trade-in plan which just as the name suggests is supposed to present Apple users with the option of replacing their aging smart phones. The idea is to turn in their current iPhone and pay the difference to acquire the latest model, which should translate into boosted sales for iPhone 5S. On the bright side, this idea should convince users that it is worth paying a small amount of money to stay up-to-date with technology, while receiving a fair compensation for their current iPhone.

    Binary options traders shouldn't overestimate the impact of this measure, because its effects will only become evident in time. On the other hand, the same campaign can be interpreted as a sign of Apple desperation, suggesting that the company is no longer confident in its ability to promote a new product. Frequently presented as a product for people who have more money than common sense by its detractors, the iPhone needs to change dramatically to be synonymous to innovation. The stock is likely to oscillate around current values and call options should be capped at $500 per share with a decent expiry date.

    Sep 08 6:03 AM | Link | Comment!
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