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. Carnival Corp, CCL Stock is in focus today…

This journal entry looks at the recent market movements of Carnival Corp, NYSE: CCL Stock

VantagePoint Trading Journal CCL Stock

Chinese stocks growled their way into a bear market overnight, taking the Shanghai Composite’s loss since a January high to 20% and wiping out $1.8T in market value. Investors have largely ignored government measures to support market sentiment, including a weekend bank reserve-ratio cut, as trade tensions add concerns about Beijing’s deleveraging campaign and weaker-than-expected economic data.

The market continues to exhibit weakness across the board.  Let’s consider Carnival Corp. (ticker: CCL)

CCL Stock

Using the predictive indicators embedded within VantagePoint and 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 6/22/18.  We can combine that with the VantagePoint propriety neural index indicator moving from the GREEN to the RED position the following day.  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. Additionally, we see that the predicted high and low for today’s range is below the actual high and low from yesterday’s session.  I want to play the VP bearish indication.

Strategy Discussion

If one was strictly a stock trader, selling (shorting) CCL in the $57.75 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 $62.00 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.  The first order of business is to calculate your target strike.  In order to perform this calculation, you need three pieces of data:  last trade price, options expiration date and implied volatility for that expiration date.  This calculation for CCL yields a target price of approximately $56.00.  You may want to consider the CCL July 13th weekly expiration 56/57 put spread, buying it for $0.25.  The most you can lose is the debit paid and the most you can profit is the width of the spread less any premium paid.  Max risk = $0.25 and max reward = $0.75.  This means that you are getting odds of 3:1.

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 86% 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.