JPM| JPMorgan Chase 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. JPM in focus today….

This journal entry looks at the recent market movements of JPMorgan Chase NYSE: JPM

VantagePoint Trading Journal JPM: Update

You will recall that we highlighted a potential bullish set up JP Morgan Chase (JPM).  Let’s take a look at the VantagePoint platform today:

JPM has enjoyed a bullish run since VantagePoint indicated a crossover on 10-13.

Specifically, we showed a bullish opportunity highlighting the November 100/105 bull call spread. At the time it was trading $0.70. Using the predictive indicators embedded within VantagePoint, we also identified a significant theoretical profit in the potential setup. With JPM stock trading 101.35, the spread was trading $2.00 which would yield a theoretical ROI of nearly 186%!

VantagePoint Trading Journal JPM

The broad markets continue to not want to lead from the front. What exactly does that mean for us?  It means we shouldn’t fight the market and instead just follow the trend. It’s our job to pick out the best bet in this continuing melt up market. Today we’ll look at the financial sector. Using the VantagePoint platform with its artificial intelligence predictive software technology, we can analyze individual stocks, futures or ETFs alongside broad indexes like the S&P, Dow and the Russell. Considering we are in a sideways market, we’ll look for shirt-term opportunities.  Let’s look at JP Morgan (JPM):

image of JPM trading diary with VantagePoint
JPM has seen considerable growth since September. A crossover on 10-16-17 could be a new start to an established trend.

The predictive artificial intelligence within VantagePoint indicates two significant things occurring in this market. We have a bullish crossover on 10/16/17. This is indicated by the blue predictive moving average line (pictured above) crossing above the black simple 10-day moving average. We also see the VantagePoint propriety neural index indicator moving from the zero (0) to the one (1) position. This indicator measures strength and weakness for a 48-hour period. The move to the one (1) position further makes the case for a potential bullish scenario.

If one were a straight stock trader, buying JPM in the $98.00 area could prove to be prudent in anticipation of a continuing move to the downside. This would be a conventional way to enter JPM as you wouldn’t have any time restrictions common with other trading strategies. It would also be smart to place a stop order in the $96.00 area to mitigate potential losses.

If one were a more active trader who trades options, this market can also prove to be advantageous.  It should be noted that implied volatility is trading on the lower end of the spectrum for JPM. The 30-day implied volatility is trading in the 15% range.

Lower levels of implied volatility mean less premium to pay for. We would like to give ourselves some time as these types of stocks tend not to move in a binary fashion. The measured move through November monthly expiration is approximately 3.75% or to a price of $102.00. A way to take advantage of this would be to explore the November 100/105 bull call spread. It is trading $0.70 presently. If we get to our $102 price, we will enjoy a reward to risk ratio just shy of 2:1. We do have the possibility of JPM going to $105. This would be a great benefit but not something we should bank on. Our maximum risk is the $0.70 we paid for the spread.

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tylerr@tradermarketinggroup.com'

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