Government Binary Options

Washington Wrecks Havoc On Binary Options Market

/in /by

These days, many of you are wondering, are binary options legal in US? My advice to you is the best thing for a binary options trader is to know your friendly Congressman. Is Boehner talking to Obama? Are they negotiating? These tiny bits of information sent binary options on the Dow Jones Industrial Average higher by 323 points, the S&P 500 up 36 points, and the NASDAQ rallied 82 points yesterday.

The news pretty much overshadowed the biggest event that will affect all binary traders for the next six years and that’s the appointment of Janet Yellen as the next Chairman, or woman in this case, of the U.S. Federal Reserve. This is, in my opinion, without a doubt, the most powerful position in the binary options market. Her words and actions will affect the future of whether binary options are legal in the United States every asset class that binary options traders trade in.

Are Binary Options Legal in US

As binary options traders, we must ask ourselves what’s next? Are stocks heading higher? Gold? The dollar? Let’s put things into perspective. Janet Yellen is the same as having Ben Bernanke in the driver’s seat. Bullish for stocks. Bearish for the US dollar. The one that surprises me is gold. Yellen will unlikely taper, or reduce the Fed’s bond-buying programs any time soon, and that should be bullish for gold. However, gold is trading rather bearishly.

Gold Chart

Remember the old trading adage, a market that sells off on bullish news is a bear and a market that rises on bad news is bullish. Well, all I see is a bear market in gold and it looks set to roll over. Buyer beware!

Today is fairly quiet day on the economic calendar. Today we have (all times Eastern Standard):

  • 830am Canadian Employment Report 10.0k forecast 59.2k prev (CAD)
  • 830am Canadian Unemployment Rate 7.0% forecast 7.1% prev (CAD)
  • 955am U.S. Michigan Consumer Sentiment 76.0 forecast 77.5 prev (USD)

Since I don’t have access to my local Congressman, I’ll be listening to the talking heads on Bloomberg, CNBC and Fox for any headlines about the latest out of Washington. I think a deal will get done, but not without holding the entire world hostage like they have been. Eventually, I see Washington pushing the U.S. back into recession. The timing on that event remains unknown, but I see the next leg as down, but we’ll probably see a blowoff top first and there will still be a lot of money made in binary options calls in the short-term.