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. PPG Industries, PPG stock, is in focus today…
This journal entry looks at the recent market movements of PPG Industries NYSE: PPG
VantagePoint Trading Journal PPG Stock
To no one’s surprise, somehow the Senate was able to kick the can down the road and open our federal government for business after a weekend of going through the motions of negotiating. Now, we can turn our focus back to the markets. We are now squarely in the teeth of Q4 2017 earnings releases.
We can use the artificial intelligence forecasting software VantagePoint to analyze markets at all levels. Whether you are looking for individual stocks, futures or ETFs, stock sector rotations, or broad indexes like the S&P, Dow, and the Russell, VantagePoint can easily compile that data. Today, we will focus our efforts on PPG Industries, (NYSE: PPG). They reported earnings already on 1/18/18. Let’s look at the chart:
Using the predictive indicators embedded within the VantagePoint platform and its predictive AI technology, we will point out two significant things. We have a bullish crossover indicated by the blue predictive indicator line crossing below the black, simple 10-day moving average on 1/19/18. We can combine that with 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 indicates strength and further makes the case for a potential bullish scenario. That’s why one could consider entertaining a setup to the upside.
If one were a straight stock trader, simply buying PPG Stock in the $117.00 area could prove to be prudent. You are anticipating a move to the upside. It’s also a conservative way to enter PPG without the limitation of time associated with other strategies. It would also be good practice to place a sell-stop order in the $116.00 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 sale of a credit put spread may be one way to approach this situation. It is optimal to collect the most premium in an options set up like this. Selling a put strike close to at-the-money and buying a further out-of-the money put as protection would be most prudent. Consider the sale of the February 114/116 put spread collecting $0.75. This will yield a risk to reward ratio of laying odds of 1.67:1. This is calculated by taking the width of the spread less any premium collected and then dividing by the amount of premium collected.
Given the trading and market environment outlined above, a trader must evaluate whether this reward/risk ratio is appropriate for his/her risk tolerance.