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, ETFs and Cryptocurrencies. Halliburton, HAL Stock, is in focus today…
This journal entry looks at the recent market movements of Halliburton, NYSE: HAL Stock
VantagePoint Trading Journal HAL Stock
Here’s a really great call by VantagePoint Software. Using the AI in the software, it forecasted an uptrend way back on March 20th. On May 25th, the forecast reversed and the software indicated a downtrend. Then, a period of consolidation happened in mid-July when that blue line was riding along the black line.
And on July 23rd, the software indicated more downside momentum.
Using the predictive indicators embedded within the VantagePoint its predictive AI technology, we will point out three significant things. We have a bearish crossover indicated by the blue predictive indicator line crossing below the black simple moving average on July 23rd. We can combine that with the VantagePoint propriety neural index indicator moving from the GREEN to the RED position the day prior. This indicator measures strength and weakness for a 48-hour period, in this case, weakness. The move to the RED position further makes the case for a potential bearish scenario. We also have the predicted high and low below yesterday’s actual high and low indicating further strength. I want to play the VP bearish indication.
Strategy Discussion
If one was strictly a stock trader, selling HAL in the $41.50 area could be prudent. You are anticipating a move to the downside. As a protective measure, it is always good practice to place a buy-stop order. In this case, placing that order in the $45.00 area will mitigate potential losses.
For active traders with a shorter investment time horizon, you can consider a setup utilizing options. Given the market conditions outlined above, taking an active, premium debit approach may be the best path to success.
Because of the reasons given above, the purchase of a debit put spread may be one way to approach this situation. The first thing that you want to do is calculate your target price. In order to perform this calculation, you need three pieces of information: current price, expiration date and the implied volatility for that expiration date. For HAL this calculation yields a target strike of ~$39.50. You may want to consider the HAL August 3rd weekly expiration 39.5/40.5 put spread, buying it for $0.30. The most you lose is the premium paid and the most you can gain is the width of the spread less any premium paid. Max risk = $0.30 and max reward = $0.70. This means that you are getting odds of 2.33:1.
Given the trading and market environment outlined above, a trader must evaluate whether this reward/risk ratio is appropriate for his/her risk tolerance.
Use smart software to your advantage
VantagePoint Software uses the power of Artificial Intelligence. This is what traders use to predict market direction and strength. Which is 1-3 days in advance with up to 87.4% accuracy. With deep learning using neural networks, VantagePoint can show you what the market is going to do instead of what it’s already done. Request a personalized demonstration of VantagePoint Software today. Learn why more than 25,000 traders trust the software, which helps them achieve trading success.
