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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5 Hot Stocks Heating up the Summer Markets

June 17th, 2016 by VantagePoint Software

Hot Stocks

Summer panic often sets in around the 4th of July. The warm months are ticking away and traders want to maximize the last few months before the holiday season sneaks up on them. Come August, traders don’t want to be spending days in front of their computer trying to pick hot stocks, they want to be outdoors taking advantage of the heat.

While summer markets can be precarious, the current market environment provides favorable conditions for selective stock buyers. Despite all the recent back and forth trading action, over 25% of NYSE stocks hit new 52-week highs in the last two weeks. That’s a pretty impressive bullish indicator to counteract the omnipresent fear of a summer slump and a host of other negative drivers including the “Brexit” vote.
But this massive wave of new highs doesn’t tell you if you should buy into the market right now, let alone which sectors and stocks, in particular, you should buy. That’s something only a uniquely honed trading system like VantagePoint Intermarket Analysis Software can do.

Fundamentals, seasonality, and most traditional technical analysis can’t compete with VantagePoint’s patented trend forecasting abilities. The proprietary and patented market-leading forecasts put bulls ahead of the rally to get you in an upward trending stock before most other traders know what’s happening.

How is this possible?

By utilizing artificial intelligence to identify intermarket relationships to quantify the impact that outside market drivers have on the stocks you want to trade. That technology has led to a software that can predict market movement with up to 86% accuracy.

Here are 5 hot stocks that have recently started to heat up in a variety of sectors. From a big box retailer (COST) to a resort and entertainment conglomerate (WYNN) to a technology communications company (EGHT), VantagePoint traders would have been able to profit from the big up trending moves in these stocks.  Were you aware of these stocks, and if so did you get into position as soon as VantagePoint users did when they saw the crossover?

Hot Stocks #1 – Costco Wholesale ($COST)

Hot Stock - COST

$COST saw a crossover at the end of May and has remained bullish ever since. The price per share has grown more than $20.

Hot Stocks #2 – 8×8 Inc. ($EGHT)

Hot Stock - EGHT

$EGHT has been bullish for quite some time. After a volatile start to May, this relatively cheap stock has seen it’s price climb from $11.60 to nearly $14 since the last crossover.

Hot Stocks #3 – Stericycle ($SRCL)

Hot Stock-SRCL

Traders without VantagePoint might have been tricked out of their long position when $SRCL showed some consolidation in late May. But without a crossover, VantagePoint users have continued to reap the benefits of a bullish trend nearly 30 days and counting.

Hot Stocks #4 – Taser ($TASR)

Hot Stocks-TASR

A bullish trend that started in early May just ended earlier this week. But not before the stock price rose by more than $4 per share. A recent crossover to the downside looks like it may be nothing more than a hiccup as our patented PMA isn’t gaining any separation from the SMA.

Hot Stocks #5 – Wynn Resorts ($WYNN)

Hot Stocks-WYNN

Long positions have been riding $WYNN since the latter half of May. We do see some consolidation of late, but without a definitive crossover and a strong neural index, traders will be paying close attention to see what VantagePoint says in the coming days.

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5 Tips to Help You Master the Trading Game

April 5th, 2016 by VantagePoint Software

The Masters is special. “A tradition unlike any other” is how the television stations often describe the annual tournament. It isn’t just about golf, it’s an event that stretches into pop culture history.

With a million shades of green (including the iconic jacket donned by the winner) highlighted by acres of blooming magnolias and azaleas, Augusta National provides a pristine backdrop for this annual obsession. But aesthetics aside, no course makes players beat themselves as regularly as Augusta.

masters TradingAs traders, we often beat ourselves too. So in honor of the Masters, here are five ways to stay on course and avoid the common traps and hazards that can derail your game.

1.  Have the Right Clubs in your Bag

Taking your grandfather’s old wooden clubs from the garage may be okay for hacking around the public course while knocking back a few brews. But serious golfers know the need for clubs tailored to you and your game. Beyond the bevy of different brands, you have to choose the shaft of the driver or the degree of loft in the head for your woods. It gets even more granular when you add the cavity and head size of the club face for irons. Putters, forget about it. You could spend weeks selecting from the thousands of options.

The key is finding the right clubs that match your specific swing. For traders, the choice can be simple when it comes to software that fits your strategy. Whether you are a day trader specializing in Forex or a swing trader focusing on a specific stock sector, VantagePoint is the complete software solution for today’s volatile, intertwined markets.

VantagePoint provides leading indicators for about 600 markets across 22 categories divided neatly into three categories – commodities, financials, and stocks with more than a dozen proprietary, forward-looking and easily-accessible technical indicators. No golf cart necessary to tote around a heavy bag, VantagePoint fits nicely onto your home computer.

2.  Timing is Everything

With your golf swing, the key to getting good distance, consistency and control is perfect timing. But this can be elusive for golfers as one millisecond is all it takes to hit the ball too early or too late.

Traders struggle with the same frustrating timing issue. They either get into a trade after a trend has started or got into a trend too early only to get stopped out. They are in the proverbial sand trap because most traders use lagging technical indicators. These indicators rely solely on past data. You can realistically expect better results if you switch to leading technical indicators like those found in VantagePoint.

VantagePoint’s full suite of predictive, leading indicators helps keep your trades on the fairway by achieving that elusive perfect timing.

3.  Hit the Practice Tee

Saying you have to practice, whether in trading or golf, isn’t groundbreaking advice. But, practice without purpose doesn’t make you better. Perfect practice does. You can go to the range and hit a bucket of balls with no purpose and have fun, but don’t expect to break 100 on your next outing. Same thing with trading. To get better you have to practice with a purpose. If you are paper trading, be diligent about your journaling or trading log. Remember, when there is real money on the line, there are no mulligans with your broker. You’re only competing with yourself so be honest about your progress.

4.  Focus on Your Short (Trading) Game

Sure it’s sexy to crush a 350-yard drive with your Big Bertha. But golf is often won and lost around the greens. The pros know they must rely on their short game to win tournaments.

Smart traders also know the market is a two-way street and you need to trade from the short side. Sticking to “long-only strategies” limits your trading opportunities.  VantagePoint’s forecasts provide insight 1-3 days in advance. This allows traders to make money in both up and down markets.

5.  Remember the Wind…

…and the green speed, the grass length, the altitude, the softness of the ball and the thousands of other variables that affect a golf shot.  It isn’t easy to process all this information, even with the help of a professional caddy.

Traders also recognize there is a confluence of factors affecting any market they trade. Solid analysis must include the interplay of global market forces. The price of U.S. equities can be tied to the price of oil, the price of the Chinese stock market and a variety of other market forces. The challenge is finding trading tools that keep pace with the shifting intermarket realities to help predict market trends. Most trading software ignores these intermarket relationships. Those that do are not updating their parameters to forecast new trends.

VantagePoint employs a sophisticated neural network process to identify which markets have the most influence on a target market. It then produces a set of intermarket data to generate predictive indicators for short-term price trend forecasts for today’s volatile markets.

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How VantagePoint Performed Against the Fed’s Announcement

October 28th, 2015 by VantagePoint Software

fed announcement header

As expected, the market showed various signs of volatility today as a result of the Fed’s announcement. Right around 1:30-2:00pm today we saw some crazy movement in both directions. So we wanted to know (more so, we wanted you to know), how did VantagePoint perform? Because if there’s one thing that trips traders up the most it’s unexpected movements due to outside forces, right?

So we put VantagePoint to the test. We look at forecasts for the Dow, the S&P 500 and Natural Gas to show you whether or not the software was able to withstand today’s volatility.

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Stock Trading Basics – The Importance of Technical Indicators

March 5th, 2015 by VantagePoint Software

What is the importance of technical indicators in today’s trading conditions?

The Importance of Technical Indicators in Stock Market AnalysisYou’ve done the research on a company, evaluated their balance sheets, and taken into account the P/E ratios and other projections. While this due diligence is extremely important when trading stocks, to maximize your potential for return, make sure you aren’t neglecting the importance of technical indicators in your trading arsenal.

 

Technical analysis is a method of evaluating securities by analyzing statistics generated by market activity, such as past prices and volume. Technical analysts do not attempt to measure a security’s intrinsic value, but instead use charts and other tools to identify patterns that can suggest future activity.

Technical analysis can be broken down into a number of sub categories depending on the types of technical indicators.

Trend Trading Indicators – Trend Lines

Experienced traders say the first thing any trader should know about a market is the trend. A market can only do three things – it can go up, it can go down, and it can go sideways. Trend Lines are an important trading tool for identifying and confirming the trend direction. They can also help predict areas of support and resistance and help traders spot important chart movements and significant price points.

A Trend Line is a straight line that connects a series of price points. The more price points the line touches, the stronger and more important the trend line is perceived to be. As a general rule, it takes at least three distinct points to confirm a valid trend line.

An Uptrend Line has an upward slope and is drawn by connecting three or more low points on a chart. Each low price point must be higher than the preceding low price point to form the positive sloping line. An Uptrend Line can act as support in a positive trending market. As long as prices continue above the Trend Line, the uptrend is considered intact. If prices break below the Trend Line, it could be an indication that the uptrend is coming to an end.

A Downtrend Line has a downward slope and is drawn by connecting three or more high points on a chart. Each high price point must be lower than the preceding high price point to form the negative sloping line. A Downtrend Line can act as resistance in a negative trending market. As long as price continue below the Trend Line, the downtrend is considered intact. If prices break above the Trend Line, it could be an indication that the downtrend is coming to an end.

Trend Trading Indicators – Moving Averages

Trend lines are the basic indicator of trend, of course, but they are quite subjective, depending on the eye of the beholder. A line that might fit one time frame may not be right for another time frame.So analysts have refined technical indicators that can verify visible trend observations from a price chart.

Perhaps the simplest to understand and most widely used of these technical indicators is a moving average, which traders have used for many years to smooth out erratic short-term price fluctuations to reveal existing trends or situations where a trend may be ready to begin or about to reverse.

The Simple Moving Average (SMA) is calculated by adding prices for a specified period of time and dividing by the number of prices in that period to get an average. Each price is given an equal weight. As each new price becomes available, the oldest price is dropped from the calculation. Many traders use a six day moving average.

Moving Averages and the Importance of Technical Indicators

With a Weighted Moving Average (WMA) more weight is given to the latest price, which is regarded as more important than older prices. If you are calculating a three-day weighted moving average, for example, the latest price might be multiplied by 3, yesterday’s price by 2 and the oldest price three days ago by 1. The sum of these figures is divided by the sum of the weighting factors – 6 in this example. This makes the weighted moving average more responsive to current price changes.

Moving averages have several uses: (1) Reveal trends by smoothing out data when market “noise” produces erratic price patterns, (2) identify points where trends may be ready to begin or end, (3) indicate shifts in market momentum based on the performance of price vs. a moving average or one moving average vs. another.

But most moving averages are lagging indicators. While they are great at identifying past market behavior, they have no predictive value. The higher level moving average is the Predictive Moving Average (PMA) used in the VantagePoint trading software.

With VantagePoint’s PMA, six days are still averaged, but day five and day six are predicted. This minimizes, if not totally eliminates, the lag. Now, the important key here is that the two days of predicted data are derived from the ongoing “under the hood” work of neural networks and intermarket analysis. Vantage Point takes technical analysis to a whole different level.

Moving Averages and the Importance of Technical Indicators

Momentum Trading Indicators

Traders are obviously interested in prices and how they change over time, but they are equally interested in measuring how fast prices are changing – the momentum of the market. Is the velocity of a price trend increasing or diminishing? Does this measurement suggest anything about future price direction?

Momentum is simply the difference between prices over some period of time. What distance does price cover in what amount of time? A price at any given moment – $42 for Microsoft stock (MSFT) for example – is just one price and doesn’t indicate whether prices are moving up or down. If the price rises $2 in one day, a trader now has a distance and a time to compare with previous price movements and arrive at a momentum value.

Momentum and Trend Trading Indicators Combined -MACD

Momentum indicators are often combined with trend following indicators such as the Moving Average Convergence Divergence Indicator (MACD).

The indicator consists of a MACD line, a Signal or Trigger line, and a Histogram. The MACD line is typically calculated as a 12-day Exponential Moving Average (EMA) minus a 26-day Exponential Moving Average (EMA). The Signal line is typically calculated as a 9-day EMA of the MACD line. The difference between the MACD line and the Signal line is represented by the Histogram.

Signal line crossovers are the most common usage of the MACD indicator. When the MACD line crosses above the Signal line, it could be viewed as a bullish crossover and suggests the trend has turned up. When the MACD line falls below the Signal line, it could be viewed as a bearish crossover and suggests the trend has turned down.

While the traditional MACD can be a valuable indicator, it is still lagging. However, the proprietary Predicted MACD in VantagePoint utilizes a 20-day EMA and a 10-day EMA, with a 9-day moving average of the two values as the trigger line to predict trend changes 1-day in advance.

When the Predicted MACD line crosses below from the trigger line, this predicts a possible reversal of the current uptrend to a new downtrend. When the Predicted MACD line crosses above the trigger line, this predicts a possible reversal of the current downtrend to a new uptrend. Another crossover indicator occurs when the Predicted MACD crosses above or below a “zero” line, which is the point where the values of the two moving averages that make up the MACD are equal.

Predicted MACD also defines overbought/oversold conditions in a market when it pulls away from the trigger line, suggesting the price of the market may be due for a correction that will bring the averages back together. Predicted MACD also spots underlying strength or weakness in a market when its movement converges or diverges from the movement of prices.

Trading Profit is Obtainable

The predicted MACD is just one tool, and as any trader knows, to be successful in the markets, you need to employ a confluence of factors. This includes strong fundamental analysis of the stock you want to buy combined with a cutting edge technical analysis tool like VantagePoint predictive trading software.

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Intermarket Analysis Software Produces the Most Accurate Stock Forecasts

February 18th, 2015 by VantagePoint Software

Looking for the Most Accurate Stock Forecast?

Most Accurate Stock Forecasts

Today’s volatile markets leaves many traders scrambling around the Internet, blogs, Social Media and news outlets looking for any glimpse of hope they can get to better protect their nest egg. But what if it was more simple than that? What if there was a piece of software that consistently produced the most accurate stock forecasts to help you enter and exit trades with precise timing and increased confidence?

Last week we took a look at some recent forecasts for Gold, 1-800 Flowers and Canadian Solar. If you missed that blog catch up here. We showed you how VantagePoint’s deadly accurate forecasts could have resulted in the following for you:

  • Over $14,000 USD in just 2 trades of Gold.
  • 32% profit 8 trading days on 1-800 Flowers $FLWS
  • Profits of $8 per share in 11 trading days on Canadian Solar $CSIQ

This week we’re continuing that conversation by taking a look back at those exact markets to see just how much of an impact you could have made to your bottom line simply by picking up the phone and investing in VantagePoint Software one week ago. You can see from the moves below that you can easily recoup the cost of your investment in a very short time. Again, if the most accurate stock forecasts are what you’re looking for then look no further than VantagePoint.

Identify the Best Trading Opportunities

What makes VantagePoint so powerful is its ability to analyze markets from a global standpoint using tons of data and science behind the scenes. The use of Neural Network software correlates data across 25 related markets for each target market, providing accurate forecasts. The Intelliscan feature easily identifies the best opportunities for you to act on, which eliminates the noise and clutter and allows you to focus on what matters: making more money.

Hold Positions through Confusing Volatility

Many traders lack the confidence necessary to stay in positions when the markets become volatile. The confirmation you get from the proprietary indicators within VantagePoint will make you feel at ease knowing that you know, with a high degree of accuracy, when to enter and exit positions to capitalize on the most profitability.

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