Trading Under Trump: Uncertainty clouds financial markets

February 21st, 2017 by VantagePoint Software

Trading Under Trump

Earnings, the Fed, the fundamentals, and the President. This is what is facing those trading under Trump. Uncertainty is now the buzz word for traders, and how could it not be? A U.S. president can rattle world markets with the stroke of a pen or a misplaced word. The dollar fell against the yen following President Trump’s executive order attempting to place a 90-day travel ban to the U.S. by citizens of some Middle Eastern countries.

The reality of a U.S. president’s influence on world affairs and markets is not new, of course. But, we seemed to have entered unprecedented times. President Donald Trump’s short time in office has shown how unpredictable he can be compared to his predecessors. That volatility in politics easily transfers to volatility in the markets. Making an already difficult practice even harder for those trading under Trump.

This reality is also not new. As far back as the Great Recession, global markets have struggled through periods of uncertainty. The big question is: how do traders deal with an uncertain Presidential “trump card” hanging over the market?

Normally, one looks at all the factors currently affecting the market to arrive at an understanding. We recently discussed how winning more than losing is all about moving the odds in your favor.

So, in this time and place, we have the unknown in President Trump. We also have knowns in earnings and economic fundamentals. Looking at these two factors, one could assess the market as being in a fairly solid place, right?

The “knowns” are positive

Earnings have provided a very positive outlook recently. As of January 27, with 34% of the companies in the S&P 500 reporting actual results for Q4 2016, 65% of S&P 500 companies have beaten the mean EPS estimate and 52% of S&P 500 companies have beaten the mean sales estimate.

Economic fundamentals are also bullish. The January Dallas Fed manufacturing survey jumped to 22.1, beating the 15.0 expected and marking the highest level since early 2010. December’s report was also revised to 17.7 from 15.5. The report had spent most of the last two years providing negative figures.

The government may trump everything

Despite the reality of decent earnings and decent economic fundamentals, the market might well be trumped by Trump. It’s looking more at the President’s influence over the world, particularly as it relates to the Fed.

Who can forget the Fed? This group has created more uncertainty in the market in the last decade than any other entity. Change is coming, eventually. Fiscal policy, trade policy, and regulatory policies are all on the table and up for review in the Trump administration. In addition, we can’t rule out seeing significant changes for the Federal Reserve and how it conducts monetary policy.

Where does all this lead us? Why right back to the future of the market trying to determine how we turn the odds in our favor with all the uncertainty in play. One choice is to sit it out, watch, and wait. But, four years is a long time.

How traders can balance it all together

So, if trading under Trump is unavoidable, an alternative approach could be to become a smarter trader. Watch specific markets carefully and ask yourself a question – Which individual markets could flourish under President Trump?

Use trading software that can spot similarly trending markets and utilize artificial intelligence to identify trends before they take off. VantagePoint does just this. It utilizes artificial intelligence to forecast market movements 1-3 days in advance with up to 86% accuracy.

With an ever-uncertain presidential cloud looming over the markets, the more reliable tools you have in your corner, the better you position yourself to be profitable.

Become a smarter trader with VantagePoint

The best tools make you a better trader. Sign up today to receive a free demonstration of VantagePoint and see how our predictive technology uses artificial intelligence to forecast market movement with up to 86% accuracy.

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Market Risk – Moving the Odds to Your Favor

February 17th, 2017 by VantagePoint Software

Market Risk and Reward

There is an inherent market risk when trading. An obvious statement, we know. But why, then, do so many play the market as if risk does not exist? Why do so many traders lose more then they win and, eventually, lose it all?

The answer is just as obvious. Perhaps it is because many believe market risk can be overcome, when, in reality, it can only be reduced, mitigated, or otherwise tempered.

The market IS risk to varying degrees, nothing more, nothing less. It is people (and people programming computers) making bets. There is only one certainty. The market will go up or the market will go down. You can reduce the probability to an even bet. There is no overcoming market risk – it will either go up or down. Flip a coin.

Every trade has an element of risk, but you can lessen it while increasing your chances of picking which way it will go. If you understand this, you are ahead in the game.

There are those who think that there is no need to lessen your market risk. They believe they “know” which way a given market will go, or they believe someone else “knows” which way it will go and they can listen to that person. We say that blind faith is a coin toss. At best, you will win more than you lose. At worst, you will lose all you have playing with that strategy long enough. It is not even luck – it is the law of probability. It is guessing and putting you at the mercy of inherent market risk.

Try to mitigate your market risk instead. If you do, you can bend the law of probability in your favor. There are three easy steps you can take to start limiting your market risk:

3 Steps to reduce Market Risk

  1. Learn the market you want to trade. Identify past patterns that will repeat over time.  Study them and you will be better served to see repeatable patterns you can act upon.

If you study the market from May 2009 through the summer of 2016 you will see identifiable patterns attached to repeated events. For example, in 2009 there was a repeated event – the potential collapse of the euro. A market pattern developed as that event was repeated ad nauseum in the news. We have a current event that mirrors this in the Fed’s “will they or won’t they” discussion on raising interest rates. Study the movements around this event and you will begin to see a pattern.

  1. Understand the psychology of the market and The Market ‘R Us people making emotional decisions.

The psychology of the market is correlated to the above, but it is less specific and harder to pinpoint. Nevertheless, if you track global events, stay tuned into the global consumer. Understand economic fundamentals and you will soon learn to better “predict” emotional market responses from the greater population of traders. This will allow you to be in a better position to make moves for your own portfolio.

  1. Supply yourself with software that helps you reduce market risk and help you win more often and defy the law of probability.

Understanding that market analysis software is here and ready for you to use it as a solid way to mitigate market risk. The best way to capture these benefits is to find software that works, software that has a track record of helping users determine short-term market movement. VantagePoint uses artificial intelligence to predict market movement 1-3 days in advance with up to 86% accuracy. We eliminate the coin flip approach and help you focus on markets that are more likely to produce winners and reducing market risk and volatility.

If you learn nothing else regarding your trading in 2017, understand that market risk is always present. However, with the right education, market understanding, and analytical tool, you can manipulate it to be more in your favor.

Reduce your market risk with VantagePoint

Make sure you have all the best tools available to you that will reduce your market risk. Sign up today to receive a free demonstration of VantagePoint and see how our predictive technology can help you gain an advantage over the markets and make 2017 your most profitable year yet!

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Big Trends and Big Trades after ‘The Big Game’

February 13th, 2017 by VantagePoint Software

Big Game Big Trades

The financial world is full of big trends and trendy indicators, predictors of future market value. But, one would be hard-pressed to find one as wild as the Super Bowl indicator.

According to the “Super Bowl” indicator, a win by an American Football Conference team, like the New England Patriots, means stocks are more likely to see big bearish trends.  The indicator, which was first introduced in the 1970’s, has an 80% accuracy rate according to Investopedia.

LPL Financial crunched the numbers further and found that in the year an NFC team wins, the average return for the Dow Jones Industrial Average is just under 11%, compared to just a 4.3% average return in the years an AFC team wins.

Theoretically speaking, this is interesting, and it sparks thought about probability, randomness, and cosmic forces beyond our control. But on the practical side, traders should ask the question, “Is this an indicator that I should utilize to capture big trends and utilize to risk your money?”

Putting aside the 80% accuracy rate of the above, the odds are good the market will drop substantially this year. For no other reason than the Schiller P/E ratio for the S&P 500 is extremely high. Shiller P/E at 28.6 is 71.3% higher than the historical mean of 16.7

Factoring in the current U.S. and global economic fundamentals, one does not see the precipitous danger. But, they are also not pointing toward momentous growth, which brings us to the Fed.

Janet Yellen will disclose their thinking next week. It would not be surprising to hear her say (once again) that the Fed is considering raising rates. Why? Perhaps it would be the big trends that led to an escalation in jobs and the slow rise in wages.

Combine an interest rate hike announcement with a market that has ridden big trends to new highs that may be too good to be true, and add the geopolitical wobbliness, and you have the ingredients for a snowballing effect in the market. One thing the market deems “bad” and we see a push of the panic button. Once the stampede starts, the market could easily see big trends to the downside and see a 10-15% fall rather quickly. It is that far out of balance.

While this still falls into the “possible” category, one thing that is fairly certain. According to historical terms, the market is due for a correction. The DJIA has climbed approximately 11% since the election. The “President Donald Trump Rally” looks to be weakening. When you take Trump out of the equation, there is no substantive reason for the recent market run in place since November. Which then leads to every credible market analyst pointing towards any reason it would continue.

The Patriots came away from last weekend’s game as champions as an AFC team. You can decide how much merit you will place in the unrelated “Super Bowl” indicator.

Catch the big trends BEFORE they happen with the help of VantagePoint

If you want to find a more reliable way to analyze the markets, then look no further than VantagePoint Intermarket Software. It utilizes artificial intelligence to forecast market movements 1-3 days in advance with up to 86% accuracy. If you want a specific example, then check out the chart below of the E-mini S&P 500 that demonstrates how accurate VantagePoint can be.

VP blog -Big trends after The Big Game

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2017: Another Year of Buying Dips and Selling Rips

January 20th, 2017 by VantagePoint Software

Buying Dips with VP

This year promises to be, well, a bit wild. Volatility can be expected not just here in the U.S. market, but all over the globe. So when it comes to picking an investing strategy for 2017 “buying dips and selling rips” could prove to be a profitable one.

Already we’ve seen the pound fall, equities slide and gold climbing on concerns U.K. Prime Minister Theresa May is prepared to lead Britain out of the European Union’s single market and act as a guide for other countries that could break from the bloc. At least that’s what President-elect Donald Trump suggests as a possible outcome. Continue reading 2017: Another Year of Buying Dips and Selling Rips

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Five Trading Questions Every Trader Asks (and how we’d answer them)

January 12th, 2017 by VantagePoint Software

Trading Questions

As we ring in another new year it’s important to keep in mind that nothing changes as much as it remains the same. For example, political power has changed, but the themes remain. Republicans will continue to attack the usual topics including the Dodd-Frank regulations that curtail the healthy financial industry. Democrats will continue to attempt to outmaneuver Republicans in an attempt to stop them.

The turbulence from the political battle will no doubt affect the market (another yearly constant) and cause angst for everyone involved. But, more likely than not, the five trading questions we’ve listed below is what’s really going to keep Joe Q. Trader awake at night in 2017. These trite realities will wreak more havoc on you than politics will on the market. At least it will if you don’t learn one simple thing – you can do nothing about the external realities affecting the market. But, you can do much about the internal forces keeping you awake at night. Nothing changes as much as it remains the same. So without further ado, here are five trading questions traders commonly ask and useful mottos to remember when facing your most common trading angst.

5 Common Trading Questions

Did I make the right trade?

Second guessing your trade is useless. If you researched with forecasts that highlight trend changes and set the trade up properly, you have a high-probability trade with a well-defined in and out based on a reasonable profit/loss. Let it ride. Motto: The trade is made, move on.

How could I have been wrong?

Trades go south. Figuring out what went wrong is important. Beating yourself up over it after the fact is not. Learn from those mistakes and protect yourself with the proper tools. VantagePoint provides a clear crossover on its charts indicating trend changes that can be used to improve your timing on entries and exits.  Motto: The trade was made, move on.

Check out this video to see how VantagePoint identifies trend reversals before traditional traders even know what’s going on.

Why did I lose money?

Again, trades go south, which usually means a money loss. But, this is an integral and necessary part of the game. No one wins all the time. The trick is winning more than you lose. See your losses as learning opportunities, nothing more. Utilizing tools like VantagePoint’s Intelliscan will help find trades that are in a better position to move in a given direction. It can also help you identify markets with high volatility that you can avoid until the market becomes more favorable. The goal is to improve your win/loss ratio, not worry about your past losses. Motto: “Fogetta boud it …”

What will the market do tomorrow?

Truthfully, more pundits/analysts get this wrong than right. The market is the collective conscious of millions of humans, so consistently predicting with accuracy the daily behavior is unlikely. VantagePoint’s patented neural networks analyze intermarket relationships and predict market movements with up to 86% accuracy. Utilizing technology will help you sleep at night because it doesn’t have to. Motto: Technology is your friends, let it help you.

Should I even be trading?

For many beginner traders, this question will cause the most sleepless nights. Second guessing your trades, beating yourself up after a poor decision, fretting over losing trades, and betting on what others think the market will do tomorrow will all lead you here. Master the answers to trading questions 1-4 and you are less likely to end up contemplating this question. Something to also keep in mind; trading, like any other skill, takes time to learn. Stay calm and learn from your losses. Utilize the tools available to maximize your potential. Do these things and the answer to question five will more than likely be yes. Motto: Do it right, sleep at night.

Trade confidently with the help of VantagePoint

Don’t leave yourself unprotected and answering these trading questions on your own. Sign up today to receive a free market forecast from VantagePoint and see how VantagePoint can help make 2017 your most profitable year yet!

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Profit From Negative Market Reactions

January 4th, 2017 by VantagePoint Software

Neagitve market reactions to profit from

Here we are, another holiday season coming to an end and another end-of-the-year market with nowhere to go but down. Yes, it’s a gloomy way to look at generally bullish market reactions. The U.S. economy is picking up steam in all the right places – wages, inflation, jobs, manufacturing, and housing. U.S. homebuilders’ confidence soared this month to the highest level in 11 years, reflecting heightened expectations of better sales now and well into 2017.

So, why would the bullish U.S. economy market trends of 2016 turn bearish? Simple, the immediate market reactions to The Fed raising interest rates is wrong, all wrong, and there will be a correction coming. Continue reading Profit From Negative Market Reactions

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‘Tis the Season for Market Volatility

December 19th, 2016 by VantagePoint Software

Market Volatility Season

Holiday season is officially here. And with that comes holiday parties. Sweet treats, eggnog, fancy attire and of course that one guy or gal that shows up three-sheets to the wind and begins owning the room with loud talk. All eyes turn to that person and others start to wonder, “What will happen next?” Before you know it, the tipsy talker turns the room topsy-turvy with unleashed dance moves that leave a trail of broken lamps, knocked over wine glasses, and people jumping out of the way.

The scenario above is eerily similar to what happens when the stock market is just cruising along like a quiet holiday party – easy, predictable, fun – and then an “event” occurs – oil-price breakdown, Chinese economic downturn, interest-rate hike –the market is suddenly dancing wildly, solid indicators are getting knocked over, and investors are getting out of the way of the wayward drunk.

Hello, volatility.

Continue reading ‘Tis the Season for Market Volatility

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JACK OF ALL TRADES: Why Successful Traders Trade Everything

November 16th, 2016 by VantagePoint Software

Jack of all trades

We all have that relative, we’ll call him Uncle Joe, that claims he “made a killing” trading FANG stocks early in the year. Meanwhile, the talking heads on financial TV programs say all the “smart money” has been doubling down on the banking sector for its next big run up in the 3rd quarter with no mention of the FANG stocks. Successful traders, however, know that when it comes to identifying specific sectors or stocks that can yield a quick, profitable return, it can be difficult to know what direction to go.

The reality is that these specific “can’t miss” strategies are not only limiting but often ill-fated. If you want to be a successful trader, aim to become a “Jack of All Trades” instead of a master who focuses on one.

This is because the majority of Wall Street, like the guy that gave the tip to Uncle Joe, have their own agendas. They are hyping a specific stock or sector for their own gains. Research shows the so-called “gurus” don’t fare much better than the individual investor. The CXO Advisory Group has a section on their website titled Guru Grades. They go through years of data they have compiled to tabulate how many times each guru “got it right” on their forecasts. With dozens of gurus on their site, their accuracy ranges from 68% to 20% over a multi-year period.

While no one is expected to be right all the time, it leaves us to wonder how “guru” status is achieved when one’s accuracy shows a failure rating of more than 50%.

The lesson we should take from this is that it’s not about what you trade, but how you trade. If you feel compelled to find the next “vehicle” for your success, here’s a better idea: Find the success first and then trade any vehicle. Traders tend to spend too much time focusing on what’s hot. However, it isn’t the vehicle or the potential that is going to make you successful. Success comes from having the right technical tools and applying that knowledge to the markets.

Instead of listening to someone with a 65% failure rating, how about using a tool that can forecast trends across a variety of markets with up to 86% accuracy?

VantagePoint Trading Software utilizes artificial intelligence to create high-probability forecasts of market trend direction. This helps traders anticipate changes in price direction, rather than identifying trends after the fact, and gives traders confidence to find profitable opportunities in any market, no matter if they are trading stocks, futures, ETFs of Forex.

Sound technical tools should work largely the same in any market. As a trader, just because you aren’t familiar with a particular stock or market, doesn’t mean you should miss out on an opportunity to profit. But how does a trader find new opportunities if they are used to only trading one asset class?

In addition to helping traders be on the right side of trends, VantagePoint’s trading technology it can help find profitable opportunities in other markets. The IntelliScan® feature in VantagePoint can identify potential trades using criteria chosen from more than 70 filters. It then combines the data with its predictive indicators to identify trend direction, trend strength, market momentum, potential trend changes, along with next day highs and lows and possible points for trade entry and exit.

So stop using Uncle Joe as your source for identifying hot new trends, stop relying on talking heads who are right as often as they are wrong, and start utilizing a tool that has a proven record of making the right call across hundreds of markets and become a jack of all trading.

To learn more about how to use VantagePoint and see firsthand how our patented, predictive forecasts can help you be successful in any market, request a free demo.

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Back to Basics – Trading 101 with VantagePoint

August 17th, 2016 by VantagePoint Software

trading 101

It’s back to school season and for many traders, a little trading 101 is all it takes to start schooling the markets. We’ve compiled the top 10 ways VantagePoint Trading Software can help traders gain a major edge and move to the top of their class.

#1 Learn your ABC’s

Technology is rapidly changing the atmosphere for traders. As we become more dependent on data and technology, traders have to be sure their strategy and tools are keeping up. VantagePoint uses Artificial Intelligence through a Neural Network process to provide traders with forecasts that are: Accurate, unBeatable and Consistent. With these ABC’s on your side, your results will improve drastically.

#2 Get to the Head of the Class

What separates the 90% of unsuccessful traders from the 10% who are profitable? Unsuccessful traders REACT to the market whereas successful traders ANTICIPATE the market. VantagePoint’s ability to forecast market direction and strength with up to 86% accuracy puts our users at the top of their trading class.

#3 Don’t Get Bullied Out of Trades

The market can be fickle and completely irrational. Much like the bully in class, it can take advantage of traders who lack the necessary confidence to stand up for themselves.

So how can traders become more confident?

By trading with consistently accurate data that doesn’t let them down.

With VantagePoint at their back, traders can rest assured they are making the right decisions with their money.

#4 Paint the Whole Picture

Much like grade school – trading is one part art and one part science. Mastering your tools and your technique are equally important. However, trading without the full-picture can be dangerous. VantagePoint uses a full global market approach to ensure traders have all the information they need to make profitable trading decisions.

#5 Rely on your Study Buddies

You don’t have to take on the markets alone. The world-class support team at VantagePoint is dedicated to your success. From 24/7 access to the Customer Learning Center, a dedicated account manager and various ongoing customer webinars, we’ll be here when you need us most. Whether it’s a phone call, email, remote login session or a quick live chat on our website – we’ll respond to your every need.

#6 Be On Time

When it comes to the markets, timing is EVERYTHING.

If you’re showing up late, you’ll almost never get ahead.

Tools and strategies that rely on outdated market lagging indicators will consistently have you chasing trends that have already started.

VantagePoint’s proprietary market leading indicators put traders on the right side of trends BEFORE they take off.

#7 Enjoy Recess Time

The best traders around will tell you – just because you trade does NOT mean you need to be stuck inside, in front of your computer. VantagePoint makes your trading simple and clear, giving you more time to enjoy what really matters in life.

#8 Make New Friends

Much like school, trading can be more fun with friends. Read what just a few of ours have to say about VantagePoint…

“I exited two futures trades early this morning for a whopping 85% total gain and increased my small trading account by 35.2%. Your help has been invaluable to me.” – Dale M.

“At this point I’m enjoying about 75% profitable trades. I’m able to cut losers quickly, and let the winners run. I am getting to feel very comfortable with VantagePoint!” – Tom H.

#9 Ace Your Tests

How does you trading report card look? Some of the most prestigious publications in the industry have put VantagePoint to the test.

See what they had to say…

“VantagePoint is intuitive, easy to use, and offers traders unique leading-type technical indicators. Most analysis software operates by plotting only current and historical prices. VantagePoint is different in that it was designed to tell you tomorrow’s expected high and low.” – Stocks & Commodities Magazine

“VantagePoint offers the trader a number of new indicators that, unlike the lagging indicators that are prevalent in most trading programs, are instead designed to be leading indicators.” – Traders Magazine

#10 Advance to the Next Grade

Trading Stocks? Forex? Futures? ETFs? Options?

Quite possibly the best part of using VantagePoint is that it works for ALL markets, regardless of your trading style. When you’re ready to diversify into new markets or add new sectors, our team will be here.

Click the image below to request a free market forecast for yourself!

VantagePoint Software Forecast

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Pokémon or Profits: Technology is a Game Changer

July 15th, 2016 by VantagePoint Software

Pokemon or Profits

“Pokémon Go” debuted last week and already millions of people have downloaded the app. The game has teens and adults staring at their phones, using technology to chase virtual monsters through parks, streets, and even off cliffs. Nintendo’s ($NTDOY) stock price has nearly doubled. This adds roughly $7.5 billion to the market cap of a game-maker that had previously lagged in mobile gaming. While the concept of augmented reality is nothing new, this is the first commercial breakthrough. 

Nintendo Stock

Technology has forever changed many industries from retail and automotive, banking and financial services. Being ahead of the curve and applying new technologies that improve current products, processes or experiences is what allows companies to flourish in today’s fast-paced, interconnected world.

Over 37 years ago, stocks trader and technical analysis guru, Louis Mendelsohn, identified an opportunity to take trading software to the next level. By applying an Artificial Intelligence system that analyzes global market relationships and transforms traditional lagging indicators into predictive, market leading indicators, in 1991 VantagePoint Intermarket Analysis Software became the first trading software that could forecast market direction and strength with up to 86% accuracy. To date, over 15,000 traders have utilized this cutting-edge technology to gain an edge on the stock market. And while it won’t help you catch a Pikachu, it will help you catch major profits.

Forecasting Technology in Action

VantagePoint Technology - DR. Horton Stock

VantagePoint forecasted a move to the upside (indicated by the blue line crossing over the black line) in D.R. Horton ($DHI). This stock rose 8.01% in the last 9 trading days. This equates to $2.52 profit per share.

VantagePoint Technology - E-mini DIJA
VantagePoint forecasted a move to the upside (indicated by the blue line crossing over the black line) in the E-mini DIJA D.R. Horton ($DHI). This market moved up $3190 per contract.
VantagePoint Technology - USD/JPY
VantagePoint forecasted a move to the upside (indicated by the blue line crossing over the black line) for USD/JPY. This market went up 257 pips, equating to $2550 per standard lot.

The similarities between VantagePoint Software and “Pokémon Go” extend well beyond the technology. Unlike conventional computer and console games that demand a player’s full attention, “Pokémon Go” can be consumed in bite-size increments throughout the day. This mimics a pattern that already matches most people’s phone usage habits.

Recognizing that most people don’t have all day to spend on their investments, VantagePoint was also built to be a time-saving tool. By requiring just a few minutes each day, the software fits well with the busy lifestyles of traders.

Instead of just augmented reality, how about augmenting your income?

Don’t let this one get away. Request a free one-on-one demonstration today and see for yourself how this trading software is a complete GAME CHANGER.

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