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. Whirlpool, WHR stock, is in focus today…

This journal entry looks at the recent market movements of Whirlpool NYSE: WHR

VantagePoint Trading Journal WHR Stock

With Dow futures up 243 points in early trade. The broader move higher comes on the back of dollar weakness (plus EUR strength) and robust corporate earnings reports.

Investors are also on the lookout for a funding bill that would avoid a government shutdown on Friday stemming from fallout from the DACA deal. It’s quite possible that we could be faced with a short-term shutdown in our Federal government.

To avoid a shutdown in our trading account, we can use the artificial intelligence forecasting software VantagePoint to analyze markets at all levels. Whether you are looking for individual stocks, futures or ETFs, stock sector rotations, or broad indexes like the S&P, Dow, and the Russell, VantagePoint can easily compile that data. Today, we will focus our efforts on Whirlpool, WHR stock.

Let us look at the chart:

The VantagePoint platform recently indicated a potential upside breakout in WHR could be forming due to a bullish crossover on 1/11/18 (note the vertical crosshair on 1/11/18).

Using the predictive indicators embedded within the VantagePoint platform and its predictive AI technology, we will point out two significant things. We have a bullish crossover indicated by the blue predictive indicator line crossing above the black, simple 10-day moving average on 1/11/18. We can combine that with the VantagePoint propriety neural index indicator moving from the zero (0) to the one (1) position. This indicator measures strength and weakness for a 48-hour period.  The move to the one (1) position indicates strength and further makes the case for a potential bullish scenario. That’s why one could consider entertaining a setup to the upside.

Strategy Discussion

If one were a straight stock trader, buying WHR stock in the $172.00 area could be a profitable decision. You are anticipating a continuing move to the upside. It’s also a conservative way to enter WHR without the limitation of time associated with other strategies. It would also be good practice to place a sell-stop order in the $168.00 area to mitigate potential losses.

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

The purchase of a debit call spread may be one way to approach this situation. Due to the implied volatility in WHR stock, we can consider a target price of $184.00. From that target, we observe that the weekly January 26th 180/185 call spread is trading $1.05.  This will yield a risk to reward ratio of 2.81:1 at that target price of $184.00. This ratio is calculated by taking the width of the target range of the spread less any premium paid (4.00 – 1.05 = 2.95). And then dividing that number by the amount of premium paid ($1.05).

Given the trading and market environment, 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. Traders use this to predict market direction and strength 1-3 days in advance with up to 86% accuracy.  With deep learning using neural networks, VantagePoint shows you what the market is going to do, not 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.