Technical Analysis. Nasdaq 100,


Technical Analysis - NASDAQ 100 & S&P 500

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Chart of the Week:
NASDAQ 100
April 28, 2002

Our professional trader had some great trades over the past month. Based on our advice he was able to make over $15,000 in the last month!

Security Return
Options (NDX April) 157%
Options (NDX May)    94%


This week was quite a good week for conservative mid-term long and short players. Based on our advice, our professional investor decided to play short, but conservatively. He didn't want to enter the market unless there was enough of a volume signal to justify his position. You can see that from the chart below, our professional investor could have make many other trades, but decided to play it safe because the market is nearing a reversal point.

Our professional investor played it safe over the past couple of weeks, only making 2 mid-term options trades. Nevertheless, those trades proved to be quite profitable, netting him over $15,000 (not including commissions). Based on our advice at the time, that the market is approaching it's resistance corridor, he knew that at points like this, the market can be quite volatile. Since the market was (and is) sill in the down-trend, he concluded that it would be safer to short the market rather than go long.

His first trade (Sell1 / Buy1), was purchasing a NASDAQ 100 (NDX) Put Option for the strike price of 1,350. He based this decision on the fact that there was a moderate increase in the VMA while the index was moving up. When an index moves up and volume moves up, one can generally assume the index will fall once the VMA has peaked. This is conversely true for when the index is falling.

Our professional investor's second trade was made on the same principle above, except that on April 22nd, he decided to place a stop-loss order set for 1,357. Unfortunately a short spike in the index the following day took his stop-loss order. He still made money, but not as much as if he waited for another large spike in the VMA. Nevertheless, it is always a good practice to have goals set for each of your orders so that you can place a stop-loss order as well.

In both of the above trades, our professional investor constantly moved his stop-loss order lower to keep pace with the market. If the index at any point decided to jump, his stop-loss order would be taken and he would still be in a profitable position.

 

Based on MarketVolume's analysis, our professional investor was able to make the following returns:

Security Return
Options (NDX April) 157%
Options (NDX May)    94%

Here is a detailed list of our investor's trades, which netted the above returns:

Date Put/
Call
Ctrcts Contract
Price
Index
Value
Strike VMA
(1-day)
Amount Profit
4/8/02 B1 Put 10 $5.75 1,389 1,350 1,445,400 $5,750  
4/9/02 S1 Put 10 $14.75 1,353 1,350 1,647,200 $14,750 $9,000
4/17/02 B2 Put 5 $13.25 1,405 1,360 1,453,900 $6,625  
4/23/02 S2 Put 5 $25.75 1,357 1,360 1,430,000 $12,875 $6,250

To see any of our past best trades, simply select from the list below.

Date Indicator
December 30, 2002 NASDAQ 100
December 19, 2002 S&P 500 (SPX)
December 10, 2002 NASDAQ 100
November 27, 2002 NASDAQ 100
November 20, 2002 NASDAQ 100 (NDX)
November 13, 2002 NASDAQ 100
November 6, 2002 S&P 500 (SPX)
November 1, 2002 NASDAQ 100
October 25, 2002 S&P 500 (SPX)
September 25, 2002 NASDAQ 100
September 18, 2002 S&P 500
September 6, 2002 S&P 500 (SPX)
August 21 2002 NASDAQ 100 (NDX)
August 14 2002 S&P 500 (SPX)
August 7, 2002 S&P 500 (SPX)
July 31, 2002 NASDAQ 100 (NDX)
July 24, 2002 NASDAQ 100 (NDX)
July 17, 2002 NASDAQ 100 (QQQQ)
July 10, 2002 S&P 500 (SPX)
June 26, 2002 NASDAQ 100 (QQQQ)
June 14, 2002 S&P 500
June 12, 2002 NASDAQ 100 (QQQQ)
June 5, 2002 S&P 500 (SPX)
May 31, 2002 S&P 500
May 29, 2002 NASDAQ 100 (QQQQ)
May 22, 2002 NASDAQ 100 (QQQQ)
May 17, 2002 S&P 500
May 15, 2002 NASDAQ 100 (QQQQ)
May 8, 2002 S&P 500 (SPX)
May 3, 2002 NASDAQ 100
May 1, 2002 NASDAQ 100 (QQQQ)
April 28, 2002 NASDAQ 100
April 22, 2002 NASDAQ 100
April 3, 2002 S&P 500
February 25, 2002 S&P 500
February 8, 2002 NASDAQ 100
January 30, 2002 NASDAQ 100
QQQQ Trading System
QQQQ, SPY and DIA trading signals for conservative mid- and long-7 term traders ...

QQQQ Signals
Past 6 Months

10%

20%

Compound Compound
Margin

As of 3/11/2010


NASDAQ Polling Service
Nasdaq in a month?

Up

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