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. Xilinx, XLNX stock, is in focus today…
This journal entry looks at the recent market movements of Xilinx NASDAQ: XLNX
VantagePoint Trading Journal XLNX Stock
Republican Senators Susan Collins and Mike Lee said late Monday that they would vote for the Republican-led tax overhaul Tuesday. Collins and Lee, two of the last remaining undecided Republican senators, had been the key to securing the bill’s passage. This monumental legislation could trigger a positive reaction from the markets.
With all signs pointing up, we can use the artificial intelligence forecasting software VantagePoint to analyze individual stocks, futures or ETFs and broad indexes like the S&P, Dow, and the Russell. We’ll look at XLNX this week.
Using the predictive indicators embedded within the VantagePoint platform and its predictive AI technology, we will point out two significant things. A bullish crossover occurred on 12/15/17. We see that based on the blue predictive indicator line crossing above the black, simple 10-day moving average on that day. We can combine that with the VantagePoint propriety neural index indicator moving from the zero (o) 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. That’s why I am willing to entertain a setup to the upside.
If one were a straight stock trader, buying XLNX stock in the $69.50 area could prove to be profitable. You would be anticipating a continuing move to the upside. It’s also a conservative way to enter XLNX without the limitation of time associated with other strategies. Another good practice would be placing a sell-stop order in the $68.00 area to mitigate potential losses.
For more active traders with a shorter investment time horizon, you can consider a setup utilizing options. Given the price action and combining it with the indicators from VantagePoint, a passive approach to the downside could prove to be sensible.
The purchase of a debit call spread may be one way to approach this situation. First, we’ll need to identify a target price. This can be done with three key pieces of information. We can use the current price, time to expiration and at the money volatility. Using these data inputs, we are targeting the $74.00 strike. If one were to consider the January 72.50/74 call vertical, it is trading $0.30 presently. That a affords a trader a reward to risk ratio of 4:1
Given the trading and market environment outlined above, a trader must evaluate whether this reward/risk ratio is appropriate for his/her risk tolerance.