Technical Analysis. Nasdaq 100,

Our short-term conservative index trader was able to make some promising trades with NASDAQ 100 index options - NDX (same would apply for QQQQ options). With these trades, our professional based his decision on strong volume signals and our published Market Commentary.

NOTE: This chart of the week is meant mainly for educational purposes. 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.

Even though all the above trades were not entirely without risk, we came out on top with a profit of $4,400

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.

I trade the S&P 500 / SPDRs. How does this apply to me?
The S&P 500 and NASDAQ 100 indexes have generally the same behavior. If you overlaid a chart of each of them during a short period such as this one, their general dynamic would be the same. Because of this, you can trade S&P 500 index shares, and options.

Why did you trade against the current trend?
Our trader decided to take advantage of short-term movements in the market. This by no means invalidates the fact that the prevailing trend was down. When the market is in a downtrend, there are always points where excellent buy signals are generated; therefore, our trader decided to take advantage of these signals. Also, MarketVolume's Market Stage mentioned that the market could be entering a support corridor, which means that the market will be increasingly volatile, excellent for short-term trading. Generally we don't recommend trading against the current trend unless you are a very skilled trader.

Should I try to paper trade before trading options?
Yes! We suggest that anyone who is new to our signals and analysis try doing some paper trading to start, at least until they are comfortable with interpreting our signals.

Can I trade Rydex or ProFund  index funds using your Market Commentary and signals?
Yes, our system is meant for index traders, and there are many Mutual Fund options to choose from when  trading indexes. So yes, our indicators are good for trading Mutual Funds, especially dynamic Rydex funds.

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.

We would like to make clear to our members the motivations that led to the above trades. We have created what we call a 'Table of Motivation', in which we try to make clear the purpose behind each of the above trades.

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:

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

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