XOM | Exxon Mobile 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. XOM in focus today.

This journal entry looks at the recent market movements of Exxon Mobile NYSE: XOM.

VantagePoint Trading Journal XOM

This has been a tough week for many traders.  The markets haven’t made any unexpected movement causing traders to get caught flat-footed. It’s just been a non-committal time and that can be a dangerous place to trade.  It’s true that the market has taken time to take a breath. At the same time, it is not presenting itself as wanting to go down for more than a few days.  So, the best course of action is to find the names that are performing well in this environment, buy yourself some time, and see if you can pick that diamond in the relative rough. Having a software like VantagePoint that forecasts market movements in advance can make that process even easier.

Today we are looking at Exxon Mobile (XOM).  This is an obvious company to look at on a daily basis as it is one of the largest companies in the world.  But, given the set of circumstances it faces, any shown strength is a very positive thing for a trader considering a play to the upside.  Energy companies with high amounts of assets (oil rigs, refineries, etc.) in and around the Gulf of Mexico region of the United States are at risk. We have the cleanup/rebuilding due to Hurricane Harvey and now we have the uncertainty surrounding Hurricane Irma. One would normally think this would be a negative for XOM. But, it has proved otherwise.  Take a look at this chart:

image of XOM trading diary with VantagePoint
XOM saw a bullish crossover on Sept. 6 and has seen prices climb by almost $3 in just a few days.

Bullish Move XOM

For our stock traders, we have XOM moving up from very strong support at the ~$76,00 level where it has been hanging out since mid-August.  Now we see that the VantagePoint platform with its artificial intelligence methodology has highlighted a potential play to the upside. We have a bullish crossover that occurred on September 6th. The neural network indicator, a 48-hour indicator that identifies strength or weakness, is solidly in the “one” position indicating strength and a possible set-up to the upside.

Because of the relatively low implied volatility of the stock in conjunction with the non-committal nature of the market, we would like to buy some time to let this possible bullish scenario play itself out. We are looking at the XOM October 6th weekly expiring options. Given that timeframe, the underlying price of XOM and the implied volatility of the October 6th expiration, we can calculate a price target of $81.75.  If we choose to buy the 80/81.5 vertical call spread for $0.40, we will afford ourselves a reward to risk ratio of 2.75:1.

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