Technical Analysis.

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 Puts #1,2" are opened
in order to close it later with profit if the index moves in our favor.

Sometimes your trades involve larger, sometimes smaller amounts of trading capital. Is this a marketing strategy or a trading tactic?
The varying amount of capital we allocate to each "Trade of the Week" is not random, nor is it a marketing gimmick. The amount we invest in a particular trade correlates directly to our interpretation of a specific volume signal. The stronger a signal, the more contracts we buy. Conversely, when our volume indicators are not as strong, or when other factors come into play (e.g., the geopolitical situation, options expirations, FED announcements, and others), we enter a trade with a smaller number of options contracts. We may hold back some cash (i.e., “keep some powder dry”) in anticipation of being able to purchase further contracts at “better” price in the near future. For instance, better prices may result from a “delayed volume reaction”, a situation where index movements do not show an immediate reaction to the appearance of a (significant) volume spike. Another reason why we may hold back some capital when faced with a weaker than usual volume signal is if we think the market could turn against us – in such a situation, a lower capital investment has the benefit of reducing potential losses.

These are the trades which netted the returns shown above:

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