Technical Analysis. |
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Highlight Investments Group |
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February 1st, 2004
This week's
“best trade of the week”
is a continuation of the previous
week’s best trade,
where we left a QQQQ Put position open.
These trades were closed
with 44%
and
56% of profit.
For this week’s “trade of
the week”, "Buy QQQQ Call
#1" is opened
in order to close it later with profit if the index
moves in our favor.
| Security | Return |
| Put #3 (QQQQ March) | +44.00% |
| Put #4 (QQQQ March) | +56.52% |
|
Total Profit: |
+$7,200 |
Even though the trades shown above were not entirely without risk, they resulted in a profit of $7,200
In the following, we would like to show you the motivating factors that led us to take above trades. For this purpose, we have created what we call a 'Table of Trade Motivators':| Trade | Volume Motivation | Market Commentary on Members Home Page during the trade |
|
Buy Put #3 01/15/2004 Was left opened last week |
During the market's late morning and early afternoon advance it ran into a very large resistive VMA spike to the upside. This resistive volume spike began at 11:30, but quickly came to a peak at 12:45. | The fact that the market has not reacted, in the short-term, to the accumulating amounts of resistive volume to the upside leads us to believe that there is now a chance for there to be a mid-term correction, not just a short-term correction. |
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Buy Put #4 01/16/2004 Was left opened last week |
Intraday, a large and broad resistive VMA spike to the upside was seen at 12:45. This spike was substantially bigger than any seen in quite some time. | The fact that the market has not seen a pullback in this situation leads us to believe that a more substantial correction may be in the offing. |
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Sell Put #3, 4 01/28/2004 |
Shortly after 14:00, the market began a swift decline throughout the rest of the afternoon. During this decline the market generated a very large amount of supportive volume to the downside, which was focused in two peaks, one at 14:45 and the other at 15:45, shortly before closing. | As a result, we expect that the market will likely continue to move higher in the mid- and long-term since we have not seen any significant signals to suggest any change in their current bullish up-trend. |
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Buy Call #1 01/29/2004 Left opened |
During the market's descent, it encountered several supportive VMA spikes to the downside at 10:15, 11:45 and at 13:45. | We still expect that the market will continue to move higher in the mid- and long-term as it continues in its bullish up-trend. |
These are the trades which netted the returns shown above:
|
Date |
Trade | Strike | Expiration | Contracts |
Contract Price |
Amount | Profit |
| 01/15/2004 | Buy Put #3 | $38 | March | 60 | $1.25 | -$7500 | |
| 01/28/2004 | Sell Put #3 | $38 | March | 60 | $1.8 | +$10800 | +$3,300 |
| 01/16/2004 | Buy Put #4 | $38 | March | 60 | $1.15 | -$6900 | |
| 01/28/2004 | Sell Put #4 | $38 | March | 60 | $1.8 | +$10800 | +$3,900 |
| 01/29/2004 | Buy Call #1 | $37 | March | 100 | $1.3 | -$13000 | |
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Total: |
+$7,200 (+50.0%) |
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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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