Technical Analysis.

Our mid-term index options trader traded QQQQ options for this best trade of the week, but one could have traded NASDAQ 100 index shares or options using the same method. These trades were based strong volume signals and our 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 $1,770

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 options will not change when trading something like NASDAQ 100 index options, futures or QQQQ shares.

Should I Trade Options?
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.

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.

I trade 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 mid-term 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 up. When the market is in an uptrend, there are always points where excellent sell signals are generated; therefore, our trader decided to take advantage of these signals. Also, MarketVolume's Market Stage mentions that the market is in a resistance corridor, which means that the market will be volatile, excellent for short-term trading. Generally we don't recommend trading against the current trend unless you are a very skilled trader.

Why did you leave one put option open?
We have confidence that the market will move lower in the short-term due to the resistive volume seen at the end of Monday.

What is a 'VMA spike to the upside'?
Simply put, that means that most of the volume spike was connected with the index while it was moving up.

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

The same principles mentioned above works for trading NASDAQ 100, S&P 500, 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.