S&P 500 analysis charts QQQQ nasdaq 100 options

S&P 500:
Mid-Term Trade Examples

It�s simple and it�s profitable.

Great return with only a few trades.

The following illustrates the basic principles behind MarketVolume�'s analysis. Chart 1 shows the relationship between index reversals and surges in the volume moving average (VMA) in 2005.

Chart 1.	Relationship between volume moving average (VMA) surges and index reversal points. S&P 500 index. January to December 2005.

The Buy/Sell points marked on Chart 1 were generated based on index volume surges. These points are referenced in our PVO Oscillator History using the following settings:

Index: S&P 500;
Fast VMA: 2-day VMA;
Slow VMA: 25-day VMA;
Selling threshold: Go short if during a price advance the fast VMA rises 17% or more above the slow VMA;
Buying threshold: Go long if during a price decline the fast VMA rises 15% or more above the slow VMA.

A significant divergence between the fast and the slow VMA indicates a high-magnitude volume surge. Our historical research indicates that (1) the market has a tendency to react to high volume surges by changing its trend and that (2) the greater the magnitude and the duration of a volume surge, the greater the likelihood of a trend reversal occurring and the stronger the reversal will likely be. Not all trades generated in this way are however profitable. For instance, the decision to go short at point I resulted in a loss of 3.28%. Despite this, in 2005 this strategy of trading the S&P 500 delivered a 16% compound return (versus an approximate 2% buy & hold return over the same time span).

The potential profit from trading volume surges may be increased substantially by selecting an appropriate trading vehicle. Table 1 shows the returns that have could have been achieved in 2005 had the volume-based trading signals (generated on the S&P 500) been applied to NASDAQ 100 Dynamic funds, the QQQQ, and to QQQQ options.

Table #1.

Trading Vehicle	Returns

QQQQ Stock	34.68%
NASDAQ 100 Dynamic Funds	74.99%
QQQQ Options (summary return)	390.61%

Our indicators built on our proprietary technologies and deliver a profitable strategy with minimum risk.

Disclaimer: The chart example is intended for educational purposes only � it does not constitute trading advice, nor does it make or imply any market trend predictions.

NASDAQ 100 Examples:
April 2006 (Short-Term)

March 2006 (Short-Term)
Example 1 (Mid-Term)*
Example 2 (Short-Term)*
Example 3 (Short-Term)
Example 4 (Long-Term)
Example 5 (Mid-Term)
Example 6 (Mid-Term)
Example 7 (Short-Term)

S&P 500 Examples:
2005 Mid-Term Summary
2005 Mid-Term Summary (trades)
July 2005 (Mid-Term)
June 2005 (Long-Term)
March 2005 (Short-Term)
April, 2004
April, 2004 (Long-Term)
April, 2004 (Mid-Term)
March, 2004 (Short-Term)
Example 2 (Mid-Term)
Example 3 (Short-Term)
Example 4 (Long-Term)
Example 5 (Long-Term)
Example 6 (Mid-Term)
Example 7 (Mid-Term)
Example 8 (Mid-Term)
Example 9 (Short-Term)
Example 10 (Short-Term)