Best Trade Newsletters
"Best Trade" Newsletter
(September 11, 2008)
This "best trade" is a continuation of previous "Best trade" newsletter
posted (sent to MV subscribers) on
September 9, 2008.
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.
Below you will find a Table of Trade Motivations and a chart showing the trades,
including detailed trade calculations.
|
Chart 1: |
NASDAQ 100 60-day Chart
|
 |
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 |
September 9,
2008 |
Buy Calls |
The trade volume over the last couple of session beat the records
and it could be compared to volume on January 22-23, 2008 and on July 17-18,
2008 only. The highest volume surges were noted in NYSE, AMEX, S&P 500 and DJU.
From the history we see the market reaction on such huge volume and we would
expect to see the similarly strong rebound in this case as well. |
September 11,
2008 |
Buy Calls |
We will reiterate some of the facts we stated from the last
couple of days - we see huge volume surges over the last couple of sessions that
beat the records and it could be compared to volume on January 22-23, 2008 and
on July 17-18, 2008 only. Based on historical performance, we see that the
market reacts by reversing strongly on such huge volume. We expect to see a
similarly strong rebound in this case as well. Furthermore we see high odds that
today's morning lows marked support and possible beginning of new up-trend.
NASDAQ 100 SBV oscillator advanced above minus 20% after
being below this level based on the 60-day SBV(20) chart. This
reveals that there is a chance of a move up. |
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 |
|
09/09/2008 |
Buy QQQLP Calls |
$42 |
Dec, 2008 |
50 |
$2.87 |
|
09/11/2008 |
Buy QQQLP Calls |
$42 |
Dec, 2008 |
50 |
$2.80 |
In this example, we have based our
QQQQ options trade
on the NASDAQ 100 volume indicators. Using the principles outlined above, you may
wish to trade options on the SPY, ^SPX, DIAMONDS (DIA). It is also conceivable
that an analysis similar to the one shown below could be used to trade options
based on the NASDAQ 100, Russell 2000, and other indexes.
©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 and 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. |
| 2008 |
|
Date |
Indicator |
|
September 16, 2008 |
QQQQ
Options |
|
September 11, 2008 |
QQQQ
Options |
|
September 9, 2008 |
QQQQ
Options |
|
July 31, 2008 |
QQQQ
Options |
|
July 29, 2008 |
QQQQ
Options |
|
July 8, 2008 |
QQQQ
Options |
|
March 19, 2008 |
SPY Options |
|
March 17, 2008 |
SPY Options |
|
February 26, 2008 |
QQQQ
Options |
|
February 22, 2008 |
QQQQ
Options |
|
January 25, 2008 |
QQQQ
Options |
|
January 23, 2008 |
QQQQ
Options |
|
January 16, 2008 |
QQQQ
Options |
|
|