Technical Analysis. Nasdaq 100, |
||||||
|
Highlight Investments Group |
|||||
|
||||||
|
||||||
 |
|
|
||||||||||||||||
|
|
|||||||||||||||||
April 18th, 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.
| Security | Return |
| Put #1 (QQQQ June) | +20.00% |
|
Total Profit: |
+$2,250 |
|
Nasdaq 100 Indicator |
Even though the trades shown above were not entirely without risk, they resulted in a profit of $2,250
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 | Market Commentary on Members Home Page during the trade |
| Buy Put #1 04/02/2004 |
On 4/2/2004 the market moved higher throughout the morning and into the early afternoon, when two large resistive VMA spikes to the upside appeared, one at 11:45, the other at 12:30. Although these resistive VMA spikes slowed the market’s ascent, they did not bring it to a stop. By 14:00, the market had generated a further resistive VMA spike to the upside. Although it was not nearly as large as the previous spikes, this third resistive VMA spike brought about a short-lived down move. A relatively small amount of supportive volume to the downside at 14:45 then counteracted, pushing the market higher again for the remainder of the afternoon. The close was at the highs and was, in fact, the highest closing level seen in several weeks. | Today's volume levels were among the heaviest in over a week. Since the majority of today's volume was resistive, we caution short-term traders about a possible short-term downturn. |
| Sell Put #1 04/15/2004 |
After initially opening higher, the market moved lower throughout the rest of the morning and early afternoon. However, by 12:15, a large amount of supportive volume to the downside was generated, but the only impact this supportive VMA spike had on the market at this point was to temporarily halt the decline. As such, the market continued its decline until it ran into another very large supportive VMA spike to the downside at 14:15, which when combined with the previous large supportive VMA spike to the downside enabled the market to begin moving higher. This main reason for this end-of-day rally was not only today's supportive volume, but the accumulation of supportive volume seen since Tuesday afternoon also had an impact on the market. | The large amount
of supportive volume generated this afternoon will add a great deal more
support to the current mid-term and long-term up-trend. We feel all the
supportive volume that has been accumulating to date will enable the market
to continue its current bullish up-trend.
|
| Buy Call #1 04/15/2004 Left opened |
After a slight move down, the market almost immediately generated supportive volume to the downside and picked up after 9:45. A moderately supportive VMA spike to the downside at 13:45 helped slow the market’s decline. Whereas the S&P 500 traded more or less sideways after this supportive volume, the NASDAQ 100 maintained a slight downward bias for the remainder of the afternoon. Shortly before the close, both indexes generated a further, albeit modest supportive VMA spike to the downside. | We believe that in the mid-term, the NASDAQ 100 may stage a more vigorous recovery than the S&P 500, as it tries to compensate for the noted discrepancy. In the mid-term, we anticipate the market will continue to move higher, as we have not seen a significant accumulation of resistive volume that would bring about an end to the bullish mid-term up-trend. |
These are the trades which netted the returns shown above:
Date |
Trade | Strike | Expiration | Contracts |
Contract Price |
Amount | Profit |
| 04/02/2004 | Buy Put #1 | $37 | June | 75 | $1.5 | -$11250 | |
| 04/15/2004 | Sell Put #1 | $37 | June | 75 | $1.8 | +$13500 | +$2,250 |
| 04/15/2004 | Buy Call #1 | $36 | June | 75 | $1.45 | -$10875 | |
|
Total: |
+$2,250 | ||||||
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.
|
QQQQ Trading System QQQQ, SPY and DIA trading signals for conservative mid- and long-7 term traders ...
|
NASDAQ Polling Service Visit Sites:
Options Trading
Stock Market Sentiment
Financial Glossary
Stock Market
| RISK STATEMENT: The trading of stocks, futures, commodities, index futures or any other securities has potential rewards, and it also has potential risks involved. Trading may not be suitable for all users of this Website. Analyst research available through this Website does not constitute a recommendation or a solicitation any particular investor should purchase or sell any particular securities. Past performance is not necessarily an indication of future performance. You absolutely must make your own decisions before acting on any information obtained from this Website. |
|
Products ||| Advertise with us
||| Site Map
Disclaimer |
Privacy
|