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Chart of the Week:
QQQQ November
1, 2002
Our conservative short-term
trader has made some profitable trades over the past week. Based on our advice
and analysis he was able to make $4,180 in less than a week!
|
Security |
Return |
| QQQQ
1 |
4.3% |
| QQQQ
2 |
4.4% |
|
Total Earnings:
|
$4,180
|
If one had traded
options, they could have made more than 40%
on each trade.
Over the past week, as MarketVolume
has stated, the market continued in it's uptrend. Our short-term conservative
trader took advantage of this by buying QQQQ every time the market had small
dips, and then selling when there was a volume signal to sell. The results of
his trades were quote impressive, as the NASDAQ 100 has had some very impressive
gains over the past couple weeks.

Motivations behind Trades:
In the above chart, you can see where each trade was placed, and the volume
associated with each trade. The first trade was placed shortly after the market
had a sharp decline, but there was a significant amount of supportive volume
at that point which indicated to our trader that the market would move higher.
The market did move higher, and due to a large VMA spike to the upside, our
trader decided to sell his shares in QQQQ, as this volume was an indicator the
market could move lower. When the market did move lower, he placed another trade,
which he sold two days later after 2 moderately large VMA spikes to the upside.
Even though the Market Commentary suggests the market will continue to move
higher, out conservative mid-term trader decided that it would be a good time
to take profits and to be safe.
Conclusion:
Our short-term
trader, based on our Market Commentaries and Volume Signals, thinks the market
will probably move higher, but to play it safe, decided to close his outstanding
positions.
How can this chart be used by me?
Our main reason for publishing these charts is to allow our members to learn
by another trader's example how they can make trades based on our volume signals and Market Commentary.
Members can gain a better understanding of how to enter and exit the market,
based on when a signal is generated. To learn from these charts, you don't need to
trade the specific security mentioned in this publication, but whatever security
you feel comfortable with. The principles for trading QQQQ shares will not change
when trading something like S&P 500 futures.
Why trade only stocks (index
shares) and not options?
Due to the current climate in the market, and the fact that this trader's
goals were to make a decent return but still remain fairly safe in his trades,
he decided only to trade stocks. Even if the market had not changed in his
favor, he could have held onto these shares for months without having to worry
about losing a lot of money as he could if trading options or futures. Simply
put, he wanted to make secure trades.
What is a 'VMA spike to
the upside'?
Simply put, that means that most of the VMA spike was connected with the
index while it was moving up.
The same principles mentioned
above works for trading S&P 500, S&P 100, Dow Jones, and other indexes.
Here is a detailed list of our investor's
trades, which netted the above returns:
|
Date |
Action |
Shares |
Price |
Index
Value |
VMA |
Amount |
Profit |
|
10/29/02 |
B 1 |
2,000 |
$23.58 |
949.34 |
1,756,600 |
$47,160 |
|
|
10/30/02 |
S 1 |
2,000 |
$24.60 |
989.27 |
2,305,200 |
$49,200 |
$2,040 |
|
10/30/02 |
B 2 |
2,000 |
$24.43 |
982.33 |
1,525,500 |
$48,860 |
|
|
11/1/02 |
S 2 |
2,000 |
$25.50 |
1,006.32 |
1,865,300 |
$51,000 |
$2,140 |
|
Total:
|
+$4,180 |
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 |
|
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