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October 17th, 2003
Our short-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 on strong volume indicators and 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.
| Security | Return |
| Call #1 (QQQQ Novemver) | +28% |
| Call #2 (QQQQ Novemver) | +16% |
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Total Profit: |
+$3850 |
Even though all the above trades were not entirely without risk, we came out on top with a profit of $3850
We would like to show the motivations that led to the above trades; therefore, we have created what we call a 'Table of Motivation':
| Trade | Volume Motivation | Market Commentary on Members Home Page during the trade |
| Buy Call #1 10/13/2003 |
As the market moved lower after 10:25, it generated a substantial supportive VMA spike to the downside between 12:45 -13:55 which was an excellent buy signal. | Our mid-term outlook remains the same as we still see room for the market to move higher in the mid-term. |
| Sell Call #1 10/15/2003 |
As the market opened 1.5% higher it generated a large resistive VMA spike to the upside, which caused the index to reverse directions and move lower. | Overall, we believe that the supportive volume that we've been seeing over the past while will keep the market moving higher in the mid-term, but there is a chance for the market to move lower in the short-term as it responds to today's resistive volume. |
| Buy Call #2 10/15/2003 |
As the market moved lower after 12:40 , it generated a moderate supportive VMA spike to the downside during 14:20-15:00, which was another excellent buying opportunity. | Overall, we believe that the supportive volume that we've been seeing over the past while will keep the market moving higher in the mid-term, but there is a chance for the market to move lower in the short-term as it responds to today's resistive volume. |
| Sell Call #2 10/16/2003 |
As the market moved higher after 11:20, it generated a substantial resistive VMA spike to the upside between 12:30 -13:00, which signaled the possibility that the market could move lower, thus we closed out position. | Overall, we believe that the supportive volume seen today, which was quite large, will help move the market even higher in the mid-term, but there is a chance for the market to have a short-term correction by options expiration this Friday. |
The same principles mentioned above also work for trading the NASDAQ 100, 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:
| Date | Trade | Strike | Contracts |
Contract Price |
Amount | Profit |
| 10/13/2003 | Buy Call #1 | $35 | 70 | $1.25 | -$8750 | |
| 10/15/2003 | Sell Call #1 | $35 | 70 | $1.6 | +$11200 | +$2450 |
| 10/15/2003 | Buy Call #2 | $35 | 70 | $1.25 | -$8750 | |
| 10/16/2003 | Sell Call #2 | $35 | 70 | $1.45 | +$10150 | +$1400 |
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Total: |
+$3850 | |||||
To see any of our past best trades, simply select from the list below.
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To see any of our past best trades, simply select from the list below.
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QQQQ Trading System QQQQ, SPY and DIA trading signals for conservative mid- and long-7 term traders ...
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