Technical Analysis.

Our short-term trader has made some trades based on our advice and analysis, he was able to make two promising trades that could lead to a tidy profit.

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 $7250

Motivations behind Trades: As the week began, it encountered some resistive volume to the upside, which caused the market to move lower on Tuesday. The reason we decided to purchase QQQQ calls on Tuesday morning was because of a large supportive VMA spike to the downside, which was seen that morning. The market did, in fact, move higher after our first trade, but on Thursday it declined in the later morning. As the market declined on Tuesday, it generated another large supportive VMA spike to the downside, which made an excellent point to purchase more QQQQ calls in order to average down the price of our position. On Wednesday the market moved slightly higher as it opened, but moved lower after 10:00. During this decline, the market generated a moderately large supportive VMA spike to the downside at 11:00. In response to this supportive VMA spike to the downside, we decided to purchase more QQQQ calls shortly after 11:00, which was when the market began to move higher. On Friday, because of a large amount of resistive volume to the upside, we decided to close all our open call position in order to play it safe.

Why did you trade QQQQ options?
Generally we trade options, and in this case QQQQ (NASDAQ 100 index shares) options because they offer a high return, but are less risky than futures for the NASDAQ 100 index. One can trade NASDAQ 100 index futures, QQQQ stocks, QQQQ options (as we did), or even NASDAQ 100 options on futures. There is a wide array of trading vehicles that are tied to the NASDAQ 100 index, and it's mostly up to the individual trader as to which is preferred to trade.

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.

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.