FDX Stock Trading Journal with VantagePoint

VantagePoint Trading Software is a forecasting tool that uses both end of day data and artificial intelligence to provide traders a forecast of market movement. These forecasts are 1-3 days in advance and help traders improve their timing on making trades and maximizing profit potential. The artificial intelligence software forecasts market movement for stocks, futures, Forex and ETFs. FedEx, FDX stock, is in focus today…

This journal entry looks at the recent market movements of FedEx NYSE: FDX

VantagePoint Trading Journal FDX Stock

The markets are solidly in a wait-and-sell mode as we anticipate the release of two key pieces of economic data.  Wednesday’s FOMC announcement and Friday’s Employment Situation report will be a trigger for market movement in the coming weeks.  In the meantime, I am not convinced the market will make any sort of definitive moves until Friday so I am willing to take advantage of a slightly inflated VIX to collect some premium if the reward to risk lines up.

VantagePoint generates forecasts of market movement 1-3 days in advance with up to 86% accuracy. We can use the artificial intelligence forecasting software to analyze markets at all levels. Whether you are looking for individual stocks or futures, stock sector rotations, or broad indexes like the S&P, Dow, and the Russell, VantagePoint can easily compile that data. Today, let’s look at FedEx NYSE: FDX.

FDX stock trading diary with VantagePoint
VantagePoint recently indicated a potential downside breakout in FDX due to a bullish crossover on 4/30/18.

Chart Interpretation

Using the predictive indicators embedded within the VantagePoint platform and its predictive AI technology, we will point out three significant things.

  1. We have a bullish crossover indicated by the blue predictive indicator line crossing below the black simple moving average on 4/30/18.
  2. We can combine that with the VantagePoint propriety neural index indicator moving from the GREEN to the RED position that same day. This indicator measures strength and weakness for a 48-hour period, in this case, weakness. The move to the RED position further makes the case for a potentially bearish scenario.
  3. We see that the predicted high and low for today’s range is below the actual high and low from yesterday’s session.

Because of these important elements, VantagePoint is providing a bearish indication for FDX stock.

Strategy Discussion

If one were a straight stock trader, selling FDX stock in the $245.50 area could prove to be prudent. You are anticipating a move to the downside. It’s also a conservative way to enter FDX without the limitation of time associated with other strategies. It would also be good practice to place a buy-stop order in the $247.50 area to mitigate potential losses.

For more active traders with a shorter investment time horizon, you can consider a setup utilizing options. Given the market conditions outlined above, taking a passive, premium credit approach may be the best path to success.

The purchase of a credit call spread may be one way to approach this situation. You want to collect as much premium as possible while adhering to your risk tolerances and protocols. You can consider the FDX 247.50/250 May 4th weekly expiration call spread collecting $0.75. The maximum reward of the spread is the amount of premium you collected and the maximum risk is the width of this spread, less the premium collected. The max risk is $2.50 – $0.75 = $1.75. The max reward is $0.75. This gives us a risk to reward ratio of 2.33:1.

Given the trading and market environment outlined above, a trader must evaluate whether this reward/risk ratio is appropriate for his/her risk tolerance.

image of vantage point software banner

tylerr@tradermarketinggroup.com'

Leave a Reply

Your email address will not be published. Required fields are marked *

Translate »