It all seemed to happen at once. On the heels of the PBOC (the Chinese central bank) lowering bank reserve requirements by 50 basis points, central banks globally announce a coordinated purchase agreement to increase liquidity in dollar swaps. The announcement came just as the US released ADP employment data that was nearly double expectations. The combine central bank announcements with better than expected economic data, created a boost in US and European markets. Investors will likely look at the better US economic data as the most important long term factor that could drive the US markets higher.
Oil prices shot up toward $102 and energy stocks moved higher. Exxon Mobile, the largest of the US integrated oil stocks soared, and is headed for resistance near $80. A break of this level will likely test $82 and then the highs made during 2011 near $85.
The trade is to purchase a daily binary option call on a daily close above 80.05.
Signal Summary
Asset : Exxon
The trade : Binary Call Option
Expiry time : End of day
When : On a daily close above 80.05
Result : Out of the money
