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. Kohl’s Corporation, KSS Stock,  in focus today…

This journal entry looks at the recent market movements of Foot Locker., NYSE: KSS Stock

VantagePoint Trading Journal KSS Stock

Negative sentiment is being seen in the stock markets again as the Dow looked set for steep triple-digit losses and S&P 500 futures slumped 1.5% to a new low of 2715. The tech sector is under additional pressure after chipmaker AMS (OTCPK: AMSSY) plunged 27% as its outlook triggered alarm bells on a big day for corporate earnings. Broader forces may also be at play, amid Saudi Arabia’s diplomatic isolation, worries about Italy’s finances and a stalemate over Brexit.

*Source:  Seeking Alpha

Let’s consider Kohl’s Corporation. (Ticker: KSS):

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. This is indicated by the blue predictive indicator line crossing above the black simple moving average on October 19th.  We can combine that with the VantagePoint propriety neural index indicator moving from the RED to GREEN on that 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 potential 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 KSS in the $72.00 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 buy-stop in the $71.00 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 may be one way to approach this situation.  You want to collect as much premium as possible. While at the same time staying within the bounds of your risk tolerance levels.  You may want to consider the KSS November 2nd weekly expiration 70/71 put spread, selling it for $0.35.  The most you can gain is the premium collected and the most you can lose is the width of the wider spread less any premium collected.  Max gain = $0.35 and max loss = $0.65.

This means that you are laying odds of 1.86:1.

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.