Technical Analysis. |
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September 7st, 2004
This “best Short-term trade”
is a continuation of the
previous best trade,
where we left a QQQQ Put position open.
| Security | Return |
| Put #1 (QQQQ Nov. - QQQQWI) | +16.67% |
|
Total Profit: |
+$1,875 |
|
NASDAQ 100 Indicator NYSE Advance/Decline
Volume Ratio |
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 Put#1 09/02/2004 Was left opened in previous "Best Trade" |
The market's advance began to accelerate throughout the latter half of the afternoon, but in doing so it also caused the market to produce a large amount of resistive volume to the upside. This large resistive VMA spike to the upside came to a peak at 15:15. At the end of the day the market also produced a moderate supportive VMA spike to the downside. |
| Sell Put#1 09/07/2004 |
As the market moved lower it began to produce larger and larger supportive VMA spikes to the downside. By 15:00 the market produced a very large supportive VMA spike to the downside. |
These are the trades which netted the returns shown above:
Date |
Trade | Strike | Expiration | Contracts |
Contract Price |
Amount | Profit |
| 09/02/2004 | Buy Put #1 | $35 | Nov. - QQQQWI | 75 | $1.5 | -$11250 | |
| 09/07/2004 | Sell Put #1 | $35 | Nov. - QQQQWI | 75 | $1.75 | +$13125 | +$1,875 |
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Total: |
1,875 | ||||||
Disclaimer: We discuss our “best trades” here mainly for educational purposes. 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.
To see any of our past best trades, simply select from the list below.
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