Technical Analysis. |
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Highlight Investments Group |
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NASDAQ 100 May 3, 2002
Our professional trader had some great trades over the past month. Based on our advice he was able to make over $10,000 in the last month!
| Security | Return |
| Options (NDX May) | 245% |
This week was a good week for our professional trader. Based on volume signals and our Market Commentary, our professional trader found that the market is in a support corridor, and due to the large volume spikes that we have seen, our professional trader decided that the best option would be to trade calls.
From the chart below, one can see that the NASDAQ 100 index has been fairly volatile, which is good for short-term trading as one can take advantage of the many ups and downs of the index.
Out of all the trades our professional trader made this week, he only lost money on the first trade. In general it is always good practice to place stop-loss orders, but sometimes the market will take your stop when you didn't anticipate. This happened with the first trade our professional trader made (Call 1).
All in all, our professional trader made out very well this week, making over $10,000 in profits (not including commissions). Our professional trader based his trading decisions partly on our Market Commentary, and partly on actual VMA signals. When combining our Market Commentary with your own analysis of volume and index trends, the result tends to be a very accurate and conservative method of trading, and therefore one can make a great deal of profit as well as minimize any potential losses.
We would like to make it clear to our members what the motivation for our professional trader was to make the above trades; therefore, we have created what we call a 'Table of Motivations', in which we try to make it clear the motivation that was behind each of the above trades.
| Trade | Motivation | MV's Commentary on Members home page |
| B1 Call | Bought call 1 based on volume signal as the index was moving down. | The market is still in it's support corridor, and therefore has room to move up and down. |
| S1 Call | Sold call 1 because stop-loss order was executed at that point. | |
| B2 Call | Bought call based on large spike in VMA as the index was moving down. | |
| S2 Call | Sold call 2 based on the fact that there was a lot of volume as the index was moving up. Sold at the peak of the volume. | Once again, in this type of situation, pay close attention to volumes which occur on the upside, as they can be clues as to when the market will go back down. |
| B3 Call | Bought call 3 because there was a large spike in the VMA after the index had declined quite a bit. | We have seen a very large amount of volume over the past few days on the NASDAQ 100 and S&P 500 indexes, but more than half of this volume occurred as the indexes were going up. Since a great deal of volume occurred as the indexes were going up, we have to take a conservative stance whereby we feel that the indexes have not reached a reversal point, and will in all likelihood go down further from this point. |
| S3 Call | Sold call 3 because there was a very large increase in the VMA as the index was moving up. | |
| B4 Call | Bought call 4 due to the fact that there was a moderately large spike in the VMA as after the index has finished declining. | Since the market's general trend is down, and we are getting unprecedented volume signals over the past week, we can only assume that a fairly pivotal reversal point is ahead. |
Based on MarketVolume's analysis, our professional investor was able to make the following returns:
| Security | Return |
| Options (NDX May) | 245% |
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 |
| 4/29/02 | B C 1 | 6 | $11.25 | 1,252 | 1,280 | 1,949,500 | $6,750 | |
| 4/29/02 | S C 1 | 6 | $4.75 | 1,231 | 1,280 | 2,141,400 | $2,850 | -$3,900 |
| 4/29/02 | B C 2 | 5 | $9.50 | 1,237 | 1,270 | 2,056.500 | $4,750 | |
| 4/30/02 | S C 2 | 5 | $29.75 | 1,286 | 1,270 | 2,019,900 | $14,875 | +$10,125 |
| 5/1/02 | B C 3 | 6 | $9.75 | 1,241 | 1,270 | 2,065,200 | $5,850 | |
| 5/1/02 | S C 3 | 6 | $18.50 | 1,267 | 1,270 | 2,419,200 | $11,100 | +$5,250 |
| 5/3/02 | B C 4 | 10 | $5.50 | 1,194 | 1,240 | 2,198,200 | $5,500 | |
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Total: |
$11,475 | |||||||
To see any of our past best trades, simply select from the list below.
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