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. Whirlpool, WHR stock, is in focus today…
This journal entry looks at the recent market movements of Whirlpool NYSE: WHR
VantagePoint Trading Journal WHR Stock Update
As a follower of this journal you will recall the potential bullish breakout opportunity that was highlighted for Whirlpool (WHR) back on 1/16/18. Let’s look at the chart today:
It should be noted that VantagePoint, with its forecasting tools and artificial intelligence capabilities, indeed highlighted this breakout. We explained how the Weekly January 26th 180/185 call spread could have been purchased for $1.05. It is trading $2.90 on expiration, 1/26/18. This spread should be exited today as today is expiration. If you don’t exit this position today and we are trading above $180.00 at the end of the day, your broker will automatically exercise your 180 call for you. If we happen to be above $185.00 by the close of today, you will automatically exercise your 180 calls and your short 185 calls will be assigned to you. This is no reason to panic. It is important to know how these positions expire.
This was a fantastic example of how powerful VantagePoint can be. Using the platform to maximize your profits and perfect your entry timing, this opportunity has an ROI of 176%!
VantagePoint Trading Journal WHR Stock
With Dow futures up 243 points in early trade. The broader move higher comes on the back of dollar weakness (plus EUR strength) and robust corporate earnings reports.
Investors are also on the lookout for a funding bill that would avoid a government shutdown on Friday stemming from fall out from the DACA deal. It’s quite possible that we could be faced with a short-term shutdown in our Federal government.
To avoid a shutdown in our trading account, 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 Whirlpool, WHR stock. Let us 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 above the black, simple 10-day moving average on 1/11/18. 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, buying WHR stock in the $172.00 area could be a profitable decision. You are anticipating a continuing move to the upside. It’s also a conservative way to enter WHR without the limitation of time associated with other strategies. It would also be good practice to place a sell-stop order in the $168.00 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, taking an active approach may be the best path to success.
The purchase of a debit call spread may be one way to approach this situation. Due to the implied volatility in WHR stock, we can consider a target price of $184.00. From that target, we observe that the weekly January 26th 180/185 call spread is trading $1.05. This will yield a risk to reward ratio of 2.81:1 at that target price of $184.00. This ratio is calculated by taking the width of the target range of the spread less any premium paid (4.00 – 1.05 = 2.95) and then dividing that number by the amount of premium paid ($1.05).
Given the trading and market environment, a trader must evaluate whether this reward/risk ratio is appropriate for his/her risk tolerance.