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A trade Example based on
our Market Outlook
(Jan - Mar 2004)
Index Day Trading™ maintains an
archive of Market Outlook dating back to March 2002, the date we
started our Market Outlook service.
Below are two excerpts from previous Market Outlook, as well
as a chart summarizing a trade that was based on the Commentaries:
Market Status
(1/20/2004):
...Today, we saw a leveling off of the VMA spikes activity. The VMA spikes
we noted today were not as significant as those we saw last week. Since
the short-term correction we have been calling for has yet to appear, we
can only conclude that the market is now setting up for such a down
move. Today's reduced volume activity is an indication that a move lower
may soon occur, as the market begins to react to the accumulated
resistive volume to the upside. We therefore expect a move lower in the
short- and mid-term. In contrast, our outlook for the long-term is for a
continued move higher, because we do not feel the strength of the
current up-trend has been weakened by the resistive volume to date...
Market Status
(3/23/2004):
...As anticipated in our previous
Market Outlook, the market generated further supportive volume today as
it bounced off its lows. We expect the market is ready to move higher in
the near future. In the short-term, however, in spite of the supportive
volume generated, we feel it may move lower first in order to generate
additional supportive volume. Our expectation for the mid- and long-term
is for the market to move higher, as it would be unlikely for the market
to continue moving lower with such an accumulation of supportive volume to
the downside having taken place..
Now, we refer you to the chart below. Compare the
excerpts you just read above with what actually took place.
By following our Market Outlook,
you could have made (on a mid-term trade):
8% by trading QQQQ,
5% by trading SPDRs or the DOW.
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