Technical Analysis. Nasdaq 100, |
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May 25th, 2004
This "Trade of the week" was based on our volume indicators.
This week's “best trade of the week”
is a continuation of the
previous week’s best trade,
where we left a QQQQ Call position open.
This trade was closed with
18% of profit.
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.
| Security | Return |
| Call #1 (QQQQ July) | +36.00% |
|
Total Profit: |
+$3,375 |
|
Nasdaq 100 Indicator |
Even though the trades shown above were not entirely without risk, they resulted in a profit of $3,375
Your trade horizon appears to apply only for the short-and mid-term. What
about the long-term? Do your indicators work for long-term time frames?
Yes, they do. In fact, our indicators work for any time frame. In our “Best
Trade of the Week” feature, we generally show short-term trades, because our
trades are based on options, and it is our strong opinion that the short-term
time frame is the best way to trade options. If you are more interested in
trading the mid- and long-term, visit the "Charts
Example" section on
www.MarketVolume.com. You will find several examples there that apply to
mid-and long-term trades.
Is your "Trade of the Week" feature associated with any paid services that
I could use to trade options in real time?
No, it is not associated with any paid services. Our “Trade of the Week”
newsletters are free of charge. They are developed by a group of independent
traders, who work closely with
www.MarketVolume.com (a service that provides real-time volume charts) and
wish to share their experiences with volume-based indicators.
| Trade | Volume Motivation |
| Buy Call #1 05/20/2004 Was left opened last week |
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. |
| Sell Call #1 05/25/2004 |
By 12:20, we noted a large resistive VMA spike to the upside. By 14:00 the market generated another two very large resistive VMA spikes to the upside. |
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 | |
| 05/25/2004 | Sell Call #1 | $35 | July | 75 | $1.7 | +$12750 | +$3,375 |
|
Total: |
+$3,375 (+36%) |
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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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