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"Best Trade" Newsletters -
Options Trading based on S&P 500 and NASDAQ 100.
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SPY
"Best Trade" Newsletter (November 23, 2007)This "best trade" is a continuation of previous "Best trade" newsletter posted (sent to MV subscribers) on November 12, 2007.  | Chart 1: | S&P 500 60-day 15-day SBV(20) | | |
Table 1: Table of Trade Motivators | Date | Trading Decision | Motivation | | 11/1/2007 | | Advance/decline volume and issues ratios hit critically low levels: 0.03 A/D issues ratio and 0.07 A/D volume ratio for S&P 500 | | 11/6/2007 | Buy Calls | SBV oscillator advanced above minus 20% (after having been below that level) based on the 60-day SBV(16) chart. This reveals that there is a chance of move up. Since the S&P 500 index shows bigger then NASDAQ 100 accumulation of the buying volume we decided to go with SPY options. | | 11/7/2007 | | Advance/decline volume and issues ratios hit critically low levels. We saw following readings: 0.12 A/D issues ratio and 0.20 A/D volume ratio for NASDAQ 100, 0.03 A/D issues ratio and 0.06 A/D volume ratio for S&P 500, 0.03 A/D issues ratio and 0.01 A/D volume ratio for DJI High-magnitude Buying volume surges were noted in all market sectors. The volume on the NASDAQ 100 exceeded the average daily volume over the last 10 session by 8%. On the S&P 500, volume was 11% higher than the average daily volume seen over the last 10 session. On the Dow, volume was 8% higher. | | 11/8/2007 | | High-magnitude Buying volume surges were noted in all market sectors. The volume on the NASDAQ 100 and S&P 500 indexes exceeded the average daily volume over the last 10 session by 40%. On the Dow, volume was 41% higher. | | 11/12/2007 | Buy Calls | SBV oscillator started to advanced based on the 60-day SBV(20) chart. This reveals that there is a chance of a short-term move up. | | 11/19/2007 | | Advance/decline volume and issues ratios hit critically low levels. We saw following readings: 0.14 A/D issues ratio and 0.10 A/D volume ratio for S&P 500, 0.14 A/D issues ratio and 0.04 A/D volume ratio for DJI SBV oscillator started to advanced based on the 60-day SBV(20) chart. | | 11/20/2007 | | High-magnitude Buying volume surges were noted in the S&p 500 and DJI sectors. The volume on the S&P 500 indexes exceeded the average daily volume over the last 10 session by 10%. On the Dow, volume was 7% higher. | | 11/23/2007 | Buy Calls | SBV oscillator started to advanced based on the 60-day SBV(20) chart. This reveals that there is a chance of a move up. |
Table 2: Details of the trades | Date | Trade | Strike | Expiration | Contracts | Contract Price | 11/06/2007 | Buy SYHLU Calls | $151 | Dec, 2007 | 20 | $4.75 | 11/12/2007 | Buy SFBLP Calls | $146 | Dec, 2007 | 30 | $3.95 | 11/23/2007 | Buy SFBLP Calls | $146 | Dec, 2007 | 50 | $2.64 |
11/23/2007
HGH Associated Traders
| Disclaimer:
This newsletter is
intended for educational purposes only - it does not constitute
trading advice, nor does it make or imply any market trend
predictions. This newsletter illustrates examples based
principally on MarketVolume®'s index volume indicators and
advance/decline (AD) indicators. We do not mean to imply that
you should follow our exact trades, but rather wish to suggest
that you may make use of our analytics to develop your own
trading style. |
About "Best Trade" Newsletters
The “Best Trades” newsletter (also simply
referred to as Best Trades) was developed by a group of
independent traders who have a close affiliation with MarketVolume (a
service provider of real-time volume charts). Wishing to share his
experiences of trading with volume-based indicators, one of the traders
came up with the idea of starting a newsletter.
| Remember:
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There is no market without price
movement,
there is no price
movement without volume |
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The idea took shape and
by 2001, we started distributing Best Trades on a regular basis. Today,
this newsletter continues to be highly popular and is still available at
no charge. If you would like
to sign up for
this FREE service, please click here.
Please be aware that Best Trades was
designed for educational purposes only. It does not provide signals
for trading index options, nor does it make any predictions as to where
the markets are likely headed.
Because Best Trades has a long history (we
began distributing the newsletter in 2001), an extensive archive of
trades is available.
Click here to
browse through our archive of all newsletters.
Looking through the archive, you will notice that
Best Trades categorizes two types of trades:
- “Past trades” or “closed” trades:
These are trades that were closed a few days before the latest issue
of Best Trades was sent out. Some of the closed trades we
discuss were made by our affiliate traders, some by MarketVolume
subscribers, who wanted to share their successes using our
volume-based trading techniques;
- “Real-time” or “open” trades: These are
trades that are still active at the time the most current issue of
Best Trades appears. The success of an open trade cannot be
judged until a later date, although we can of course assess its
“performance to date”.
The main reason we started including “open trades” in our newsletter
is in response to an argument made by several of our subscribers.
They reasoned that by showing and discussing only closed (past)
trades, we were in effect basing the value of our trading
methodology solely on historical performances. Not wishing to
“avoid” the challenge of assessing trades in real-time (which is
after all the main justification for our real-time JavaVolume
charts, see MarketVolume.com), we opted to include some open trades
in the newsletter. In this way, we can show Best Trades
readers that volume-based technical analysis works just as
well in real time.
To assess the performance of a “real-time” trade addressed in a
current edition of Best Trades, you may chose to monitor the trade
yourself, or you can read about it in a subsequent issue of the
newsletter, when the trade will have been closed.
It is imperative that you understand that our
newsletter was designed for educational purposes. When we leave a trade
open, we strive to show the value of volume-based technical analysis, in
real-time, as a trade unfolds. Yet, our open trades must never be seen
as recommendations to follow (copy) a particular trade.
| Remember:
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Volume - your most powerful ally |
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So what about following our real-time trades, you ask?
Our answer is that this might be risky business and therefore not a good
idea.
There are several reasons:
- Our newsletter will definitively reach you with
some delay (remember, this is a free service and we have xx thousand
subscribers), so it might prove to be too late to open a position
similar to ours. We follow a clear, step-by-step procedure for
sending out trading information: First, data goes to our paying
MarketVolume members, then to our MarketVolume Free Trial members,
only after that to all other (free) subscribers;
- Another reason we advise against placing trades
based on our newsletter is technical in nature. Because all of our
trades are based on an analysis of the relationships between volume
and price/index movements (which all change in rapid succession),
you must absolutely have access to real-time volume charts
(e.g., our JavaVolume charts) for the S&P 500 and NASDAQ-100
indexes, at a very minimum.
Below you will find a history of the real-time (open)
trades that we published in our "Best Trades" newsletter.
Click here to
browse through our archive of all newsletters.
Trade History of real-time (open) trades.
|
Indicator |
Trade Type |
Initiated on |
Closed on |
Return (%) |
Summary
Return (%) |
 |
| SPY Options |
Buy Calls |
March 17, 2008 |
March 18, 2008 |
+35.6 |
+62.0 |
| QQQQ Options |
Buy Calls |
February 22, 2008 |
February 26, 2008 |
+19.3 |
+26.4 |
|
QQQQ Options |
Buy Calls |
January 16, 2008 |
January 25, 2008 |
+7.1 |
+7.1 |
 |
 |
 |
 |
 |
 |
|
SPY Options |
Buy Calls |
Dec. 11, 12, 20, 2007 |
December 24, 2007 |
+63.0 |
+258.4 |
|
SPY Options |
Buy Calls |
November 6, 24, 2007 |
November 30, 2007 |
+20.0 |
+195.4 |
|
QQQQ Options |
Buy Calls |
September 24, 2007 |
October 16, 2007 |
-18.2 |
+175.4 |
|
QQQQ Options |
Buy Calls |
September 10, 2007 |
September 12, 2007 |
+17.1 |
+193.6 |
|
QQQQ Options |
Buy Calls |
August 16, 2007 |
August 21, 2007 |
+51.1 |
+176.5 |
|
QQQQ Options |
Buy Puts |
Jul 25, Aug 1, 2007 |
August 8, 2007 |
+14.2 |
+125.4 |
|
QQQQ Options |
Buy Puts |
July 17, 2007 |
July 18, 2007 |
+17.3 |
+111.2 |
|
QQQQ Options |
Buy Puts |
June 18, 2007 |
June 21, 2007 |
+11.4 |
+93.9 |
|
QQQQ Options |
Buy Calls |
May 15, 2007 |
May. 16, 2007 |
+9.7 |
+82.5 |
|
QQQQ Options |
Buy Puts |
May 9, 2007 |
May. 11, 2007 |
+20.6 |
+72.8 |
|
QQQQ Options |
Buy Puts |
Apr. 17, 26, 2007 |
May. 1, 2007 |
+12.5 |
+52.5 |
|
SPY Options |
Buy Calls |
Mar. 30, 2007 |
Apr. 3, 2007 |
+27.5 |
+40.0 |
|
QQQQ Options |
Buy Puts |
Mar. 23, 2007 |
Mar. 26, 2007 |
+12.5 |
+12.5 |
 |
 |
 |
 |
 |
 |
| QQQQ Options |
Buy Calls |
Dec 12, 2006 |
Dec 13, 2006 |
0 |
+339.5 |
| QQQQ Options |
Buy Calls |
Nov 28, 2006 |
Nov 29, 2006 |
+9.1 |
+339.5 |
| QQQQ Options |
Buy Calls |
Nov 17, 2006 |
Nov 20, 2006 |
+3.7 |
+330.4 |
| QQQQ Options |
Buy Puts |
Nov 16, 2006 |
Nov 17, 2006 |
+11.1 |
+326.7 |
| QQQQ Options |
Buy Calls |
Nov 10, 2006 |
Nov 13, 2006 |
+18.7 |
+315.6 |
| QQQQ Options |
Buy Calls |
Oct 24, 2006 |
Oct 25, 2006 |
+13.6 |
+296.9 |
| QQQQ Options |
Buy Puts |
Sept 29, 2006 |
Oct 02, 2006 |
+28.0 |
+283.3 |
| QQQQ Options |
Buy Calls |
Sep 06, 2006 |
Sept 11, 2006 |
+12.5 |
+255.3 |
| QQQQ Options |
Buy Calls |
Aug 10, 2006 |
Aug 10, 2006 |
+7.4 |
+242.8 |
| QQQQ Options |
Buy Puts |
Aug 09, 2006 |
Aug 10, 2006 |
+12.5 |
+235.4 |
| QQQQ Options |
Buy Calls |
July 28, 2006 |
July 31, 2006 |
+12.5 |
+222.9 |
| QQQQ Options |
Buy Puts |
July 27, 2006 |
July 28, 2006 |
+10.0 |
+210.4 |
| QQQQ Options |
Buy Calls |
July 21, 2006 |
July 24, 2006 |
+16.6 |
+200.4 |
| QQQQ Options |
Buy Puts |
July 20, 2006 |
July 21, 2006 |
+44.0 |
+183.8 |
| QQQQ Options |
Buy Calls |
July 13, 2006 |
July 20, 2006 |
+3.4 |
+139.8 |
| QQQQ Options |
Buy Puts |
July 12, 2006 |
July 13, 2006 |
+47.4 |
+136.4 |
| QQQQ Options |
Buy Calls |
July 04, 2006 |
July 12, 2006 |
-13.5 |
+89.0 |
| QQQQ Options |
Buy Calls |
June 15, 2006 |
July 03, 2006 |
+30.6 |
+102.5 |
| QQQQ Options |
Buy Calls |
May 11, 2006 |
June 15, 2006 |
-81.6 |
+71.9 |
| QQQQ Options |
Buy Calls |
Apr 26, 2006 |
Apr 27, 2006 |
+21.4 |
+153.5 |
| QQQQ Options |
Buy Calls |
Apr 17, 2006 |
Apr 18, 2006 |
+37.5 |
+132.1 |
| QQQQ Options |
Buy Calls |
Mar 28, 2006 |
Mar 29, 2006 |
+29.0 |
+94.6 |
| QQQQ Options |
Buy Calls |
Mar 08, 2006 |
Mar 14, 2006 |
+33.7 |
+68.6 |
| QQQQ Options |
Buy Calls |
Feb 02, 2006 |
Mar 03, 2006 |
+13.5 |
+34.9 |
| QQQQ Options |
Buy Calls |
Jan 20, 2006 |
Jan 31, 2006 |
+21.4 |
+21.4 |
 |
| QQQQ Options |
Buy Calls |
Oct. 21,
2005 |
Nov. 2 2005 |
+26.5 |
+26.5 |
 |
| QQQQ Options |
Put #1,2,3 |
Sept.
9, 2004 |
Sept. 25, 2004 |
+3.6 |
+154.1 |
| QQQQ Options |
Put #1 |
Sept. 2, 2004 |
Sept. 7, 2004 |
+16.7 |
+150.5 |
| QQQQ Options |
Put #2 |
Aug 19, 2004 |
Aug 31, 2004 |
-17.8 |
+133.8 |
| QQQQ Options |
Put #1 |
Aug 18, 2004 |
Aug 19, 2004 |
+10.7 |
+151.6 |
| QQQQ Options |
Call #1,2 |
Aug 5, 2004 |
Aug 15, 2004 |
-56.5 |
+140.9 |
| QQQQ Options |
Call #3 |
July 21, 2004 |
July 31, 2004 |
+8.8 |
+197.4 |
| QQQQ Options |
Call #1,2 |
July 14,2004 |
July 21, 2004 |
+2.9 |
+188.6 |
|
QQQQ Options |
Put #1 |
June 23, 2004 |
July 1, 2004 |
0.0 |
+185.7 |
|
QQQQ Options |
Put #1,2 |
June 6, 2004 |
June 20, 2004 |
-18.5 |
+185.7 |
|
QQQQ Options |
Call #1 |
May 20, 2004 |
May 25, 2004 |
+36.0 |
+204.2 |
|
QQQQ Options |
Call #1,2 |
May 12, 2004 |
May 16, 2004 |
+18.5 |
+168.2 |
|
QQQQ Options |
Call #2 |
April 29, 2004 |
May 12, 2004 |
+19.2 |
+149.7 |
|
QQQQ Options |
Call #1 |
April 18, 2004 |
April 22, 2004 |
+20.0 |
+130.5 |
|
QQQQ Options |
Call #1,2,3 |
March 14, 2004 |
March 28, 2004 |
-37.0 |
+110.5 |
|
QQQQ Options |
Call #3 |
Feb. 29, 2004 |
March 7, 2004 |
+16.7 |
+147.5 |
|
QQQQ Options |
Call #3 |
Feb. 15, 2004 |
February 22, 2004 |
+32.1 |
+130.8 |
|
QQQQ Options |
Call #2 |
Feb. 8, 2004 |
February 15, 2004 |
+33.3 |
+98.7 |
|
QQQQ Options |
Call #1 |
Feb. 1, 2004 |
February 8, 2004 |
+15.4 |
+65.4 |
|
QQQQ Options |
Put #3,4 |
Jan. 25, 2004 |
February 1, 2004 |
+50.0 |
+50.0 |
  |
|
QQQQ Options |
Call #1 |
Dec. 7, 2003 |
Dec 14, 2003 |
+3.8 |
+115.1 |
|
QQQQ Options |
Call #2 |
Nov 30, 2003 |
Dec. 7, 2003 |
+38.5 |
+111.3 |
|
QQQQ Options |
Put #1,2 |
Oct. 31, 2003 |
Nov. 23, 2003 |
+26.6 |
+72.8 |
|
QQQQ Options |
Call #3 |
Oct. 24, 2003 |
Oct. 31, 2003 |
+46.2 |
+46.2 |
|
shown only for the
trades that were left opened |
|
Additional notes:
Our aims are:
- To show you how to apply our volume indicators to
particular market situations;
- To explain the specific correlations that exist
between volume spikes and index movements.
We do not mean to imply that you should follow our
trades; rather, we suggest that you may make use of our volume analytics
in order to develop your own trading style. We also urge you to paper
trade before committing your money to the markets.
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