Technical Analysis.

This week's Best Trade of the week is a continuation on last week's best trade where we left two call positions open. It turned out to be an excellent call, as the market moved up dramatically since last Friday and our mid-term index options trader, trading NASDAQ 100 options, came out with a substantial profit in the end.

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 $118,600

Why did you close all your call positions when the Market Commentary says the mid-term trend is up?
The main reason for closing all outstanding call positions was because of the large amount of resistive volume we saw today, which could move the market lower in the short-term. Since these are July call options they could depreciate quickly with s short-term move down. Also, if the market does begin to move down, having July calls doesn't allow for much room for error, so closing with a profit today turned out to be the best option. Keep in mind that the upcoming weekend is a long weekend, which means that there is one extra day in which the price of these calls can depreciate. Generally we recommend trading options that don't expire for at least two or three months, but in this case we had to buy July options since the liquidity of August and September options was rather low for the strike price we had in mind.

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.

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. Only very experienced traders should trade options because of the high risk involved. You can always trade index shares instead of options and still make a decent profit, but returns will not be as large.

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.

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, as well as 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.