Technical Analysis. Nasdaq 100,

Our conservative short-term trader has made some profitable trades recently. Based on our advice and analysis he was able to make $3,240 for just one day!

If one had even traded January options, they could have made more than 30% on each trade, but we don't generally recommend options trading for our new members.

NOTE: This chart of the week is meant mainly for educational purposes only. We don't recommend that our customers follow these exact trades. We suggest that you develop your own trading style and try doing some paper trading before using our volume analytics.

In this week's chart of the week we decided to highlight the intraday trades of one of our short-term traders, and November 13th was an excellent day for that. In the below chart you can easily see many clear VMA signals that could lead you to a profitable trade. In the morning there was an elevated amount of volume to the downside, which we call supportive volume, and that volume was countered by volume to the upside caused by Mr. Greenspan having opened his mouth. And finally at the end of the day we saw more supportive volume. All in all, there were three very clear volume signals that could have lead you to making some profitable trades.

Motivations behind Trades: As the market was declining in the morning there was a moderate VMA spike that signaled the market would soon move higher. Since MarketVolume's Market Commentary also mentioned that the market was not likely to go much lower than it had, this was a good opportunity to buy some QQQQ shares. Less than an hour later Greenspan offered his opinion on the economy and this caused a very large spike in volume as well as a significant jump up for the NASDAQ 100 index. Since this volume was all to the upside we had to sell as the market could react by moving lower again. For the last trade there was a very clear and concise VMA spike as the index moved lower. It was an excellent point to purchase some more QQQQ shares. At the end of the day we decided to sell half of all our QQQQ shares, not because of volume, but mostly because an intraday trader generally does not hold much overnight. We are keeping those QQQQ shares in anticipation that the market will move higher still.

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.

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 sell half of his outstanding positions.

The same principles mentioned above works for trading S&P 500, S&P 100, Dow Jones, and other indexes.

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