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Best Short-Term Trade
May 20th, 2004
NOTE: We discuss our “best trades of the week” here mainly for
educational purposes. The trading examples we illustrate are based
principally on our volume indicators and market commentaries. Our main
intent is to show you how you can apply our volume indicators and to explain the
specific correlations that exist between volume spikes and the movement of the
indexes. We do not mean to imply that you should follow our exact trades, but
rather wish to suggest that you may make use of our volume analytics to develop
your own trading style. We also urge you to paper trade before committing your
money to the markets.
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.
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Nasdaq 100 Indicator
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If one of your trades has not yet been terminated (by the time you report
it as a “Best Trade of the Week), should I try to follow it?
Our "Best Trade of the Week" feature is designed primarily to teach you how to
use our volume indicators. We do not wish to suggest that you should mimic these
actual trades, even if they are still open. Only follow an open trade if you are
aware of the risks and if you have access to real-time intraday volume charts
(you can get these from
www.MarketVolume.com). Whether or not we leave a particular “Best Trade of
the Week” open is always contingent on our volume indicators. For logistical
reasons, we cannot always send our newsletters out the same day we close a
specific trade. Even if we could, it would often be too late for you to
establish a position, since the market can reverse with very little or no notice
following a significant volume signal. For these reasons, we strongly advise you
against following an open position on our “Best Trade of the Week” feature.
Should you wish to do so regardless, please assure that you have access to
real-time intraday volume charts.
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 |
Buy Call #1
05/20/2004
Left opened |
During the
market's early afternoon descent, it began to pick up a rapidly increasing
about of supportive volume to the downside. By 12:30, this very large
supportive VMA spike to the downside came to a peak. |
These are the trades which netted the returns
shown above:
Date |
Trade |
Strike |
Expiration |
Contracts |
Contract
Price |
Amount |
Profit |
| 05/20/2004 |
Buy Call #1 |
$35 |
July |
75 |
$1.25 |
-$9375 |
|
|
Total: |
+$0 |
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.
To see
any of our past best trades, simply select from
the list below.
|
Date |
Indicator |
|
September 25, 2004 |
QQQQ Options |
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September 18, 2004 |
QQQQ Options |
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September 10, 2004 |
QQQQ Options |
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September 9, 2004 |
QQQQ Options |
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September 7, 2004 |
QQQQ Options |
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September 2, 2004 |
QQQQ Options |
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August 31, 2004 |
QQQQ Options |
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August 19, 2004 |
QQQQ Options |
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August 18, 2004 |
QQQQ Options |
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August 15, 2004 |
QQQQ Options |
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August 5, 2004 |
QQQQ Options |
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August 3, 2004 |
QQQQ Options |
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July 31 2004 |
QQQQ Options |
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July 21, 2004 |
QQQQ Options |
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July 14, 2004 |
QQQQ Options |
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July 13, 2004 |
QQQQ Options |
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July 1, 2004 |
QQQQ Options |
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June 23, 2004 |
QQQQ Options |
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June 20, 2004 |
QQQQ Options |
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June 6, 2004 |
QQQQ Options |
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May 30, 2004 |
QQQQ Options |
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May 25, 2004 |
QQQQ Options |
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May 20, 2004 |
QQQQ Options |
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May 16, 2004 |
QQQQ Options |
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May 12, 2004 |
QQQQ Options |
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May 09, 2004 |
QQQQ Options |
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April 29,
2004 |
QQQQ Options |
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April 22,
2004 |
QQQQ Options |
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April 18,
2004 |
QQQQ Options |
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April 10,
2004 |
QQQQ Options |
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April 6, 2004 |
S&P 500
Options |
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March 28,
2004 |
QQQQ Options |
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March 14,
2004 |
QQQQ Options |
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March 7, 2004 |
QQQQ Options |
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February 29,
2004 |
QQQQ Options |
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February 22,
2004 |
QQQQ Options |
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February 15,
2004 |
QQQQ Options |
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February 8,
2004 |
QQQQ Options |
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February 1,
2004 |
QQQQ Options |
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January 25,
2004 |
QQQQ Options |
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January 18,
2004 |
QQQQ Options |
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January 12,
2004 |
QQQQ Options |
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