Technical Analysis. Nasdaq 100,


Technical Analysis - NASDAQ 100 & S&P 500

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Best Short-Term Trade
December 7st, 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.

This week's Best Trade of the week
is a continuation on our previous "Best Trade"
where we left a QQQQ Call position open.
This trade was closed with
38.46% of profit.

NOTE: This trade 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.

In this trade of the week the trade "Buy QQQQ Call #1" is opened
in order to close it later with profit if the index moves in our favor.

Security Return
Call #2 (QQQQ January) +38.46%
Put #1 (QQQQ January) +35.29%

Total Profit:

+$7,600

Even though all the above trades were not entirely without risk, we came out on top with a profit of $7,600

Notes:

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 #2
11/26/2003
Was left opened
last week
As the market moved lower, it encountered a couple moderately large supportive VMA spikes to the downside at 11:00 and 11:45. Based on Monday's resistive volume to the upside, the market may move lower in the short-term. In the mid-term, however, we still see the market moving higher as we have not seen any significant resistive VMA spikes to the upside.
Sell Call #2
12/01/2003
As the market opened, it encountered two resistive VMA spikes to the upside, which, at 10:15 Based on the small resistive volume today and Wednesday's resistive volume, the market could move slightly lower in the short-term.
Buy Put #1
12/03/2003
After about 10:15 the market began to move higher throughout the rest of the morning. During this move, the market generated two large resistive VMA spikes to the upside at 11:45 and 12:45. There is a chance that in the short-term market could go lower.
Sell Put #1
12/04/2003
As the market started a downward move from an early high at around 11 am, supportive volume built in 3 stages, culminating in the large VMA spike seen around 2 pm. We believe that the markets have room yet to move higher over the medium -term, although there may be some short-lived declines (due to the resistive volume encountered during the market's afternoon rally).
Buy Call #1
12/05/2003
Left opened
Today’s largest VMA spike occurred around 1:45 p.m. It was clearly supportive to the downside. We believe that the markets are in an accumulation phase, “collecting” more supportive volume to prepare for a near-term up move.

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 Expiration Contracts Contract
Price
Amount Profit
11/26/2003 Buy Call #2 $35 January 80 $1.3 -$10400  
12/01/2003 Sell Call #2 $35 January 80 $1.8 +$14400 +$4,000 (+38.5%)
12/03/2003 Buy Put #1 $35 January 120 $0.85 -$10200  
12/04/2003 Sell Put #1 $35 January 120 $1.15 +$13800 +$3,600
12/05/2003 Buy Call #1 $35 January 80 $1.3 -$10400  
Not Closed Sell Call #1 $35 January 80 - -  Not Closed

Total:

+$7,600

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

Date Indicator
December 21, 2003 QQQQ Options
December 14, 2003 QQQQ Options
December 7, 2003 QQQQ Options
November 30, 2003 QQQQ Options
November 23, 2003 QQQQ Options
November 9, 2003 QQQQ Options
October 31, 2003 QQQQ Options
October 24, 2003 QQQQ Options
October 17, 2003 QQQQ Options
October 10, 2003 S&P 500 (SPX)
October 3, 2003 QQQQ Options
September 25, 2003 QQQQ Options
September 16, 2003 QQQQ Options
September 11, 2003 S&P 500 (SPX)
September 5, 2003 S&P 500 (SPX)
August 27, 2003 QQQQ Options
August 15, 2003 QQQQ Options
August 4, 2003 QQQQ Options
July 28, 2003 NASDAQ 100
July 25, 2003 S&P 500 (SPX)
July 12, 2003 NASDAQ 100
July 2, 2003 NASDAQ 100 (NDX)
June 27, 2003 NASDAQ 100 (NDX)
March 28, 2003 NASDAQ 100 (NDX)
March 11, 2003 NASDAQ 100
March 4, 2003 NASDAQ 100 (NDX)
February 12, 2003 NASDAQ 100 (NDX)
February 4, 2003 S&P 500
January 29, 2003 S&P 500 (SPX)
January 24, 2003 S&P 500
January 22, 2003 NASDAQ 100 (NDX)

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

Date Indicator
December 30, 2002 NASDAQ 100
December 19, 2002 S&P 500 (SPX)
December 10, 2002 NASDAQ 100
November 27, 2002 NASDAQ 100
November 20, 2002 NASDAQ 100 (NDX)
November 13, 2002 NASDAQ 100
November 6, 2002 S&P 500 (SPX)
November 1, 2002 NASDAQ 100
October 25, 2002 S&P 500 (SPX)
September 25, 2002 NASDAQ 100
September 18, 2002 S&P 500
September 6, 2002 S&P 500 (SPX)
August 21 2002 NASDAQ 100 (NDX)
August 14 2002 S&P 500 (SPX)
August 7, 2002 S&P 500 (SPX)
July 31, 2002 NASDAQ 100 (NDX)
July 24, 2002 NASDAQ 100 (NDX)
July 17, 2002 NASDAQ 100 (QQQQ)
July 10, 2002 S&P 500 (SPX)
June 26, 2002 NASDAQ 100 (QQQQ)
June 14, 2002 S&P 500
June 12, 2002 NASDAQ 100 (QQQQ)
June 5, 2002 S&P 500 (SPX)
May 31, 2002 S&P 500
May 29, 2002 NASDAQ 100 (QQQQ)
May 22, 2002 NASDAQ 100 (QQQQ)
May 17, 2002 S&P 500
May 15, 2002 NASDAQ 100 (QQQQ)
May 8, 2002 S&P 500 (SPX)
May 3, 2002 NASDAQ 100
May 1, 2002 NASDAQ 100 (QQQQ)
April 28, 2002 NASDAQ 100
April 22, 2002 NASDAQ 100
April 3, 2002 S&P 500
February 25, 2002 S&P 500
February 8, 2002 NASDAQ 100
January 30, 2002 NASDAQ 100
QQQQ Trading System
QQQQ, SPY and DIA trading signals for conservative mid- and long-7 term traders ...

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As of 3/11/2010


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