|
Best Trade Newsletters
"Best
Trade" Newsletter (July 28, 2006)
10% in one day
This "best trade" is a continuation of previous "Best trade" newsletter
posted (sent to MV subscribers) on
July 27, 2006 where we left a QQQQ Call position open.
|
Security |
Return |
| Puts (QQQQ - QQQUK) |
+10% |
For this "Best trade",
"Buy Calls" trade is opened
in order to close them later with profit if the
index moves in our favor.
We expect top close "Buy Calls" trade
once the SBV Oscillator advance above plus 33%
and then drops below that level back
(based on NASDAQ 100 15-day SBV Oscillator chart with 240-min VMA).
Below you will find a Table of Trade Motivations and a chart showing the trades,
including detailed trade calculations.
|
Chart 2: |
NASDAQ 100 SBV Oscillator - July, 2006.
15-day View, 240-min VMA. |
 |
In Table 1 - a 'Table of Trade Motivators'
- we show the motivating factors that led us to take the above trades.
Table 1: Table of Trade Motivators
|
Date |
Trading
Decision |
Motivation |
|
07/27/06 |
Buy Puts |
SBV oscillator railed above plus 33% and dropped below that
level back on July 27, 2006 around 11:00 EST (see NASDAQ 100 15-day SBV chart
with 240-min VMA). This reveals that there is a big chance of a short-term
correction down. We left "Buy
Puts" trade opened in order to close it later if the index moves in our
favor.
We expect top close "Buy Puts" trade
once the SBV Oscillator drops below minus 33% and then advances to about that
level back (based on NASDAQ 100 15-day SBV Oscillator chart with 240-min VMA) |
|
07/28/06 |
Sell Puts
Buy Calls |
SBV oscillator dropped below minus 33% and
advanced above that
level back on July 28, 2006 around 11:15 (see NASDAQ 100 15-day SBV chart with 240-min
VMA). This reveals that there is a big chance of a short-term move up.
High-magnitude buying surges
were noted in all market sectors on July 21,2006. Since that time we have not
seen any compatible selling volume surges. On July 21, 2006 the
NASDAQ 100 (1/10) PVO was 34.7%,
indicating that the volume seen on this day exceeded the average volume over the
previous 10 trading days by 34.7%. The (1/10) PVO for S&P 500 was 20%, for the
Dow Jones Industrial it was - 33%. This increases the possibilities of move up.
We left "Buy
Calls" trade opened in order to close it later if the index moves in our
favor.
We expect top close "Buy Calls"
trade
once the SBV Oscillator advance above plus 33%
and then drops below that level back
(based on NASDAQ 100 15-day SBV Oscillator chart with 240-min VMA).
|
Below we list in detail the actual trades made,
along with the netted returns achieved.
Table 2: Details of the trades
|
Date |
Trade |
Strike |
Expiration |
Contracts |
Contract
Price |
Amount |
|
07/27/2006 |
Buy QQQUK Puts |
$37 |
Sep. 2006 |
100 |
$1.00 |
-$10,000 |
|
07/28/2006 |
Sell QQQUK Puts |
$37 |
Sep. 2006 |
100 |
$1.10 |
+$11,000 |
|
Total Profit: |
+$1,000
(10%) |
|
07/28/2006 |
Buy QQQIJ Calls |
$36 |
Sep. 2006 |
100 |
$1.60 |
Open Position |
©HGH Associated Traders
Important:
The analysis results presented in the "Best Trade" may differ from
the outlook presented in the daily Market Commentaries. Results may also differ
from the trading signals generated for Exchange Traded Funds (ETFs), or from any
other research and analysis efforts shared with our members. These are products
developed by independent research teams, delivered to MarketVolume® members.
While sharing some research results, these autonomous research teams may use
different systems and may have dissimilar market outlooks.
| Disclaimer: This newsletter is intended
for educational purposes only – it does not constitute trading advice,
nor does it make or imply any market trend predictions. This newsletter illustrates
examples based
principally on MarketVolume® index volume indicators and advance/decline (AD)
indicators. 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
analytics to develop your own trading style. |
|
2006 (first part) |
|
Date |
Indicator |
|
June 28, 2006 |
QQQQ Options |
|
June 15, 2006 |
QQQQ Options Trading |
|
June 15, 2006 |
Options Trading |
|
May 17, 2006 |
Trading QQQQ Options |
|
May 12, 2006 |
Trading Options |
|
May 11, 2006 |
QQQQ |
|
May 8, 2006 |
QQQQ Trading |
|
April 27, 2006 |
Trading QQQQ |
|
April 26 2006 |
QQQQ Options |
|
April 18, 2006 |
Trading QQQQ Options |
|
April 17 2006 |
QQQQ Trading |
|
March 29, 2006 |
QQQQ Options |
|
March 28 2006 |
Options Trading |
|
March 14, 2006 |
QQQQ |
|
March 10 2006 |
QQQQ Options Trading |
|
March 8, 2006 |
Trading QQQQ Options |
|
March 3, 2006 |
QQQQ Options |
|
February 28, 2006 |
QQQQ Trading |
|
February 8, 2006 |
Options Trading |
|
February 2, 2006 |
QQQQ Options |
|
January 31, 2006 |
QQQQ |
|
January 29, 2006 |
QQQQ Options |
|
January 20, 2006 |
QQQQ Options Trading |
|
January 13, 2006 |
QQQQ Options |
|
|
|
|