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. Boingo Wireless, WIFI stock, is in focus today…
This journal entry looks at the recent market movements of Boingo Wireless NASDAQ: WIFI
VantagePoint Trading Journal WIFI Stock Update
You may recall that we indicated a potential bullish move in Boingo Wireles, Inc. (WIFI) back on 1/9/18. We highlighted a potential opportunity by purchasing the Feb 23/24 call spread for $0.30. Here’s the chart today:
By employing rigid, disciplined risk management, we were able to hold on to this position even though the stock did dip. After the dip, the stock took off and VantagePoint, with its predictive and artificial intelligence technology, one would have been able to sell this type of position for $0.70 today realizing a ROI of 133%!
VantagePoint Trading Journal WIFI Stock
With the new year really finding its legs, there are a few recent events to keep in mind.
The International Consumer Electronics Show, known commonly as CES, kicks off today. Startups and the biggest names in the technology industry will descend on Las Vegas for four days. There are usually a number of “big things” unveiled that will have people talkong for the upcoming year.
Coal, nuclear and its related industries took a hit since Federal energy regulators have killed Rick Perry’s power grid proposal, which would have subsidized some coal and nuclear power plants.
The technology and energy sectors could see some movement as a result of these events. Luckily, 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 focus on WIFI. Here’s 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 1/5/18. 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 stock trader, simply buying WIFI stock in the $23.35 area could prove to be profitable. You are anticipating a continuing move to the upside. It’s also a conservative way to enter WIFI without the limitation of time associated with other strategies. It would also be good practice to place a sell-stop order in the $22.75 area to mitigate potential losses.
For more active traders with a shorter investment time horizon, consider a setup utilizing options. Given the market conditions outlined above, 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. We can consider a target price of $24.00. From that target, we can observe the monthly February 23/24 call spread is trading $0.30. This will yield a risk to reward ratio of 2.33:1. This ratio is calculated by taking the width of the spread less any premium paid (1.00 – 0.30) and dividing by the amount of premium paid (0.30). $0.70 divided by $0.30 =2.33.
Given the trading and market environment outlined above, a trader must evaluate whether this reward/risk ratio is appropriate for his/her risk tolerance.