Posted on: Monday, March 30, 2009 2:03 PM EST
Watching Z-Score and Bollinger Bands on QQQQ showed that the markets and QQQQ were due for a reversal. Instead of shorting QQQQ I purchased PUTS on Thursday 3/26/2009 and sold the puts on Monday 3/30/2009 for a 52% profit.
The chart below shows that Z-Score reached an extreme of close to +2. In addition the lower volume on rising prices helped to confirm the trend was about to turn. These factors can help getting into a trade early before the MTR-TM sends a UP or DOWN Market signal.
