Top 4 Trading Assets For The Week – 11/16/2015

The US core inflation rate will be announced on Tuesday, 17 November at 1:30 PM GMT. The consensus forecast for the inflation rate is 1.9% and the actual rate as recorded in September 2015 was 1.9%. Recall that the Fed has its inflationary target rate of 2% to justify an interest-rate hike from the current low of 0.25%. That the US interest-rate is creeping up towards the target range is especially good news for binary option traders pinning their hopes on a rate hike on December 15/16 when the Fed FOMC meets. The inflation rate has steadily been increasing since May 2015 when it was recorded at 1.7%. In June, July and August the inflation rate was unchanged at 1.8%, increasing to 1.9% in September 2015.

October Inflation Rate Announcement Expected on Tuesday, 17 November

With all signs pointing in the right direction, bullish sentiment for a rate hike has grown to a staggering 92% according to the latest Wall Street Journal poll of economists and analysts. It is against this backdrop that many trading decisions will be made in the coming week. Let’s take a look at stocks, indices, commodities and currency pairs that will be impacted.

STOCK:Consider “Put Options” Goldcorp Inc. (GG: NYSE)

Goldcorp Inc. is a mining company that is involved in the development, exploration, acquisition and operation of precious metals in Latin America, Canada and the US. The company is primarily engaged in mining operations for the following metals and precious metals: lead, zinc, copper, gold and silver. I recommend placing put options on the stock, given its inherent weaknesses and the current economic climate that mining companies operate in at present. If you’re looking to achieve positive gains from this stock as an investment, the only way you’re likely to do that in the short to medium term is via put options with binary options trading.

Going short on the stock certainly makes sense because the stock has been faced with declining net income, poor ROE and an unflattering track record. The high target for the stock is $29, the low target is $13 and the mean target is $19.92. The trend since the end of October has been unmistakable, and we are a ways from the 52-week high of $25, and perilously close to the 52-week low of $11.43. Currently, this stock has a -2.78 earnings per share figure and a dividend of just 0.24 with a yield of 1.73%.