EBAY Stock – Ebay Trading Journal with VantagePoint

EBAY Stock – Ebay 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, ETFs, and Cryptocurrencies. Ebay, EBAY Stock, is in focus today…

This journal entry looks at the recent market movements of Ebay: EBAY Stock

VantagePoint Trading Journal EBAY Stock

The stock market sentiment felt some pressure overnight after President Trump said he expected to raise tariffs on $200B of Chinese goods to 25% (from the current 10%) on Jan. 1. He also declared that he’s ready to apply a further round of levies on $267B worth of imports, including iPhones and laptops, starting next year. In response, China’s foreign ministry urged the U.S. to work toward a positive outcome of a planned G20 meeting later this week between President Trump and Xi Jinping in Buenos Aires.

*Source:  Seeking Alpha

Let’s consider Ebay. (Ticker: EBAY):

The VantagePoint platform recently indicated upside momentum.

Using the predictive indicators embedded within the VantagePoint platform and its predictive AI technology, we will point out three significant things. We have a bullish crossover indicated by the blue predictive indicator line crossing above the black simple moving average on November 26th.  We can combine that with the VantagePoint propriety neural index indicator moving from the RED to the GREEN position on the same day.  This indicator measures strength and weakness for a 48-hour period, in this case, strength.  The move to the GREEN position further makes the case for a potentially bullish scenario. We also have the predicted high and low above yesterday’s actual high and low indicating further strength.  I want to play the VP bullish indication.

Strategy Discussion

If you are strictly a stock trader, simply buying EBAY in the $28.50 area is a prudent move.  You are anticipating a move to the upside.  It is always a good idea to enter a sell-stop order to mitigate potential losses.  Placing that sell-stop in the $27.50 area will achieve that goal.

For active traders with a shorter investment time horizon, you can consider a setup utilizing options. Given the market conditions outlined above, taking a passive, premium credit approach may be the best path to success.

Because of the reasons given above, the sale of a credit put spread is one way to approach this situation.  You want to collect the maximum amount of premium while staying within your risk parameters.  You can consider the EBAY December 21st regular monthly expiration 27/28 put spread, selling it for $0.30.  The most you can make is the amount of premium collected and the most you can lose is the width of the spread less any premium collected.  Max reward = $0.30, max risk = $0.70.  This means that you are laying 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 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.

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By |2018-11-27T16:04:49+00:00November 27th, 2018|Stocks|0 Comments

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