Technical Analysis. |
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Highlight Investments Group |
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July 21st, 2004
This “best Short-term trade”
is a continuation of the
previous best trade,
where we left a QQQQ Call position open.
NOTE: We discuss our “best trades” 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 “best trade”,
"Buy QQQQ Call #3" are opened
in order to close it later with profit if the
index moves in our favor.
| Security | Return |
| Call #1 (QQQQ September - QQQQII) | 0.00% |
| Call #2 (QQQQ September - QQQQII) | +6.06% |
|
Total Profit: |
+$750 |
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NASDAQ 100 Indicator |
If one of your trades has not yet been terminated (by the time you report it as a “Best Trade), should I try to follow it?
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':Our "Best Trade" 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” 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” feature. Should you wish to do so regardless, please assure that you have access to real-time intraday volume charts.
| Trade | Volume Motivation |
| Buy Call #1 07/13/2004 Was left opened in previous "Best Trade" |
As the market declined again, it produced a large supportive VMA spike to the downside, which came to a peak by approximately 13:30. This large supportive VMA spike to the downside was enough to halt the market's decline. As the market progressed throughout the remainder of the day, it encountered relatively little resistive volume at all. In fact, the majority of the volume throughout the day turned out to be supportive volume to the downside. |
| Buy Call #2 07/14/2004 Was left opened in previous "Best Trade" |
During the afternoon market's decline, it encountered some supportive volume to the downside at 12:00, but this only caused a short-term reprieve in the market's descent, as the market continued to move lower shortly afterwards. However, by 13:30, the market produced a very large supportive VMA spike to the downside, which was actually larger than any of the VMA spikes we have seen in over a week. However, despite the size of this supportive VMA spike to the downside, the market only moved higher for a short period and began to move lower shortly after 14:15. As such, the market continued its decline for the remainder of the afternoon, but in doing so it also generated further supportive volume to the downside shortly before closing. |
| Sell Call #1, 2 07/21/2004 |
Initially the market gapped a fair bit higher today, but in doing so it also produced a moderately large resistive VMA spike to the upside, which caused the market to immediately begin moving lower when combined with the resistive VMA spike seen yesterday afternoon. |
| Buy Call #3 07/21/2004 Left Opened |
The market's descent continued until about 14:00 where it generated a substantially large supportive VMA spike to the downside. During the market's final decline it encountered another large supportive VMA spike to the downside at 15:15, but this time it only helped slow the market's decline slightly as it simply continued to move lower throughout the remainder of the afternoon. |
These are the trades which netted the returns shown above:
Date |
Trade | Strike | Expiration | Contracts |
Contract Price |
Amount | Profit |
| 07/13/2004 | Buy Call #1 | $35 | September - QQQQII | 75 | $1.75 | -$13125 | |
| 07/21/2004 | Sell Call #1 | $35 | September - QQQQII | 75 | $1.75 | +$13125 | $0 |
| 07/14/2004 | Buy Call #2 | $35 | September - QQQQII | 75 | $1.65 | -$12375 | |
| 07/21/2004 | Sell Call #2 | $35 | September - QQQQII | 75 | $1.75 | +$13125 | +$750 |
| 07/21/2004 | Buy Call #3 | $34 | September - QAVIH | 75 | $1.7 | -$12750 | |
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Total: |
750 | ||||||
For this week’s “trade of the week”,
"Buy QQQQ Call #3" are 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.
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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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