Best Trade Newsletters
"Best
Trade" Newsletter (November 12, 2007)
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.
This "best trade" is a continuation of previous "Best trade" newsletter
posted (sent to MV subscribers) on
November 6, 2007.
Below you will find a Table of Trade Motivations and a chart showing the trades,
including detailed trade calculations.
|
Chart 1: |
S&P 500 60-day
SBV(20)
|
 |
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 |
|
11/1/2007 |
|
Advance/decline volume and issues ratios hit
critically low levels: 0.03 A/D issues ratio and 0.07 A/D volume ratio for S&P
500 |
|
11/6/2007 |
Buy Calls |
SBV oscillator advanced above minus 20%
(after having been below that level) based on the 60-day SBV(16) chart. This
reveals that there is a chance of move up.
Since the S&P 500 index shows bigger then NASDAQ 100 accumulation of the
buying volume we decided to go with SPY options. |
|
11/7/2007 |
|
Advance/decline volume and issues ratios hit
critically low levels. We saw following readings: 0.12 A/D issues ratio and
0.20 A/D volume
ratio for NASDAQ 100, 0.03 A/D issues ratio and 0.06 A/D volume ratio for S&P
500, 0.03 A/D issues ratio and 0.01 A/D
volume ratio for DJI
High-magnitude Buying
volume surges were noted in all market sectors. The volume on the NASDAQ
100 exceeded the average daily volume over the last 10 session by 8%. On the S&P
500, volume was 11% higher than the average daily volume seen over the
last 10 session. On the Dow, volume was 8% higher. |
|
11/8/2007 |
|
High-magnitude Buying
volume surges were noted in all market sectors. The volume on the NASDAQ
100 and S&P 500 indexes exceeded the average daily volume over the last 10 session by 40%. On the Dow, volume was 41% higher. |
|
11/12/2007 |
Buy Calls |
SBV oscillator started to advanced based on the 60-day SBV(20) chart. This
reveals that there is a chance of a short-term 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 |
|
11/6/2007 |
Buy SYHLU Calls |
$151 |
Dec, 2007 |
20 |
$4.75 |
|
11/12/2007 |
Buy SFBLP Calls |
$146 |
Dec, 2008 |
30 |
$3.95 |
In this example, we have based our SPY options trade
on the S&P 500 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 – 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. |
|
Date |
Indicator |
|
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 |
|
December 24, 2007 |
SPY Options |
|
December 20, 2007 |
SPY Options |
|
December 12, 2007 |
SPY Options |
|
December 11, 2007 |
SPY Options |
|
November 30, 2007 |
SPY Options |
|
November 23, 2007 |
SPY Options |
|
November 12, 2007 |
SPY Options |
|
November 6, 2007 |
SPY Options |
|
October 16, 2007 |
QQQQ Options |
|
October 11, 2007 |
QQQQ Options |
|
September 28, 2007 |
QQQQ Options |
|
September 24, 2007 |
QQQQ Options |
|
September 12, 2007 |
QQQQ Options |
|
September 10, 2007 |
QQQQ Options |
|
August 21, 2007 |
QQQQ Options |
|
August 16, 2007 |
QQQQ Options |
|
August 8, 2007 |
QQQQ Options |
|
August 1, 2007 |
QQQQ Options |
|
July 25, 2007 |
QQQQ Options |
|
July 18, 2007 |
QQQQ Options |
|
July 17, 2007 |
QQQQ Options |
|
June 21, 2007 |
QQQQ Options |
|
June 18, 2007 |
QQQQ Options |
|
May 17, 2007 |
QQQQ Options |
|
May 16, 2007 |
QQQQ Options |
|
May 11, 2007 |
QQQQ Options |
|
May 9, 2007 |
QQQQ Options |
|
May 1, 2007 |
QQQQ Options |
|
April 26, 2007 |
QQQQ Options |
|
April 17, 2007 |
QQQQ Options |
|
April 3, 2007 |
SPY Options |
|
March 30, 2007 |
SPY Options |
|
March 26, 2007 |
QQQQ Options |
|
March 23, 2007 |
QQQQ Options |
|
|
