Sell in May and Go Away?

May 10th, 2017 by VantagePoint Software

Sell in May and go away

If there is anything to recall relative to the current top-heavy market it would be this: what goes up must come done. And this brings us to “Sell in May and go away,” a ritualistic saying that may or may not is good advice. It truly depends on the market.

Market Trends

The market does not behave on ritual. It is cyclical, pattern-driven and historically bent. But it is not ritualistic. Does this mean traders should not follow the annual advice about “sell in May and go away?” The reality is that the market can, has, and will act differently each and every May. The wins (or losses) a trader encountered will determine whether he or she should sell or buy in May. After all, every portfolio is different. There isn’t a one-size-fits-all strategy. It’s all about doing what’s best to suit each trading style.

The Reality

However, the reality of today’s market suggests traders seriously consider selling this May, or soon thereafter, but not going away entirely. Think about divesting to build up a bank for the correction that is surely coming.  Remember Newtonian physics – what goes up must come down. Be aware, the market has been defying Newton for some time now and the apple is hanging precariously on its branch. But gravity will surely take over eventually.

By any measure, the market is overpriced. For example, the Schiller P/E ratio shows a market almost 10 points higher than the historical mean (25.35 now vs. 15.65 historical). There are more metrics, and here are 20 of them according to Bank of America.

Metrics aside, the biggest reason a trader should prepare for stepping away in May, or soon thereafter, is there is no rational for the big climb since November. The hope that the current political administration and Congress might produce tax reform and remove the regulations that keep the greed of big banks in check is not a solid platform upon which the current lofty market stature can stand. So far we have seen how well this dynamic duo has performed.

What now?

The point is this– the market will correct. It always has and it always will. Maybe not this May, but soon enough given the historical patterns of money movement in the summer. Having suggested this, it does not mean traders simply disappear.

Rather, do this instead:

  1. Keep a watchful eye and be prepared to get out when the correction arrives.
  2. Be patient. As with all corrections, they do not happen overnight.
  3. Use the right tools to track individual markets for short-term movement within the ups and downs of the correction. Find those trend resistors.

By modifying the strategy to adapt to the changing market conditions (whatever they may be and whenever they may happen), traders don’t have to “Sell in May and Go Away.” Instead, they can put themselves in a position to find profitable positions in any given season (and market condition).

The VantagePoint Difference

Smart traders find ways to make money. And all traders want to be smart, right? A tool that can help the timing and give accurate forecasts 1-3 days in advance will be crucial to every trader’s timing strategy. VantagePoint Intermarket Analysis Software provides that forecast with up to 86% accuracy.

Take a look at Nokia ($NOK).  Using the power of Artifical Intelligence and Intermarket Analysis, VantagePoint predicted a bullish trend starting in late April. In the 13 trading days since predicting the trend, the stock has rallied 18.73%. At a very affordable $5.25 share price, traders could have invested a small amount to yield large gains.

Nokia Stock Chart

5,000 shares x .95 =  $4,750 in profit!

Had a trader followed the “Sell in May and go away” logic they would have missed this short trend to make a very easy profit.

Despite volatile market conditions, there is always an opportunity to make money with the right tools and understanding. A blind strategy is a poor strategy. Don’t let this be you. Use VantagePoint to your advantage and find those trend-changing trades that can keep you successfully trading while others have simply gone away in May.

What goes up will always come down. Do you have the right tools to handle a market correction? 

Get ahead of trends despite any market condition with VantagePoint Trading Software. Sign up today for your FREE demo to see how you can predict market trends 1-3 days in advance with up to 86% accuracy.

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Using Artificial Intelligence Trading Software

May 2nd, 2017 by VantagePoint Software

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Are you ready for a self-driving car?
Did you ask Google, Siri or Amazon Alexa for anything today?
Was your last trade a winner?
Or did you lose?

These questions point to a reality in today’s world. Artificial intelligence (AI) is here to stay. You are up against it in the trading world if you are not using it to your advantage.

Success is all about increasing the odds of picking a good trade. It is about winning more and losing less. One way to increase the odds in a fluctuating market is to use trading software that relies on the power of Artificial Intelligence.

How Does Artificial Intelligence Work?

AI is based on the idea of intelligent agents. Intelligent agents are devices that gather data and take actions to maximize its chance of success to achieve a goal. AI does this through learning and solving related problems that might hinder achieving the goal.

Simply put, Artificial Intelligence is about collecting and crunching massive amounts of data for learning, reasoning and perception. It performs the work that humans cannot.

Trading Success with Artificial Intelligence

Traders need a tool that does the heavy lifting for them. There are many ways to trade. Trend following, mean reversion, technical, analysis, fundamental analysis, etc. However, the problem always remains the same. Which way is the market headed?

Our global markets are interconnected and complex. How do traders analyze multiple markets influencing each other to the degree needed to accurately forecast market trends?

The answer: Use AI-based trading software.

Capabilities of Artificial Intelligence with VantagePoint

VantagePoint Trading Software utilizes AI to learn about markets through intermarket analysis, defines movement patterns in those markets and then predicts where that market is headed 1-3 days in advance with up to 86% accuracy. VantagePoint and its AI component maximize your chances of trading success. The software crunches massive amounts of data to achieve a highly probable outcome.

Let’s look at Wyndham Worldwide ($WYN). With the power of Artificial Intelligence and Intermarket Analysis, Vantagepoint forecasted an uptrend in mid March. By the end of April, the stock had risen over 19%. Using VantagePoint to spot this early trend, traders were able to get in sooner and make a hefty profit with very little work.

Wyndham Stock Chart

 

 

 

 

 

 

 

 

 

 

 

 

Ultimately, the evolutionary maxim – adapt or perish – defines the reality in today’s trading world. Traders who are not using Artificial Intelligence software to their benefit when trading are not competitive.

Are you ready to learn how Artificial Intelligence can improve your trading strategy?

Sign up today to receive a FREE demonstration of VantagePoint. See how we use our Artificial Intelligence software to sift through massive quantities of financial data, uncover the hidden patterns of movement and use that information to accurately and consistently predict market trend changes in advance.Artificial Intelligence

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Learn the top benefits of ETF Trading

April 25th, 2017 by VantagePoint Software

Exchange Traded Funds

The stock market is many things to many traders. Simply speaking, it’s all about choices. Not only choices traders make when making a trade, but the choices made on what to trade. Stocks, options, forex and futures are all trading vehicles. But for many, the risk is too high or the payoff is not high enough to draw interest. In the middle are Exchange Traded Funds (ETFs), a trading vehicle that is relatively low risk with a payoff that is often quite substantial. With ETF trading, traders get the benefit of owning a mutual fund without having to pay the expensive fees or abide by time-limit rules.

What are ETFs?

As defined by Investopedia, An ETF is a security that tracks an index, a commodity, bonds, or a basket of assets like an index fund. Unlike mutual funds, an ETF trades like common stock on the stock exchange. ETFs experience price changes throughout the day as they are purchased and sold. ETFs have higher daily liquidity and lower fees than mutual fund shares. This makes them an attractive alternative for individual investors.

Benefits of Trading ETFs

Traders are not interested in the net asset value of an ETF. Just like common stock, they are interested in the current and future daily price. Here are the top 3 benefits to ETF trading:

  1. ETFs experience price changes throughout the day so traders can set up a trading plan as if they were any other vehicle. Traders can sell short, long, buy on margin, and can purchase as little as one share.
  2. ETFs typically have higher daily liquidity and lower fees than mutual fund shares. This makes ETF trading a solid alternative for traders who like to spread out the risk.
  3. ETFs are no different than other asset-based markets. You pay a commission to your broker just like any regular order. However, many brokers have started to offer zero-commission trades, which makes ETF trading even more appealing.

ETFs have worldwide reach

Another advantage to ETF trading is that they are globally traded including markets in Canada, China, the United Kingdom, Japan, Brazil, Germany and Hong Kong.

With its cutting-edge and patented technology, VantagePoint trading software mines global market data based on intermarket analysis and applies the pattern recognition capabilities of Artificial Intelligence to produce proprietary, leading technical indicators that look ahead, not backwards for the ETFs you trade. In our interconnected global trading world, this is a huge asset!

Let’s analyze the impact of oil. Although the profits earned by trading the oil futures are highly sought after, futures trading isn’t for everyone. The capital requirements, volatility, and the expertise required to trade the futures markets makes ETF trading a more suitable option for stocks traders. ETFs give traders ability to capture profits with oil futures while trading them like a stock.

Oil ETF

Notice how VantagePoint indicated both uptrends and down trends in the ETF United States Oil (USO) before they occurred. By utilizing Artificial Intelligence to analyze the impact of global markets, VantagePoint has the ability to combine past price data with predictive data giving traders the opportunity to gain 30% profit in two short months.

If you’re looking for a way to diversify, trade one-on-one, and get a low cost for the trade, consider ETF trading. Put the revolutionary power of AI to work for you.

Let VantagePoint help you predict the best ETF trades for your portfolio. 

Apply VantagePoint’s forecasting capabilities to your first (or next) ETF trade and ensure your timing is on the money, not after it.
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How to Avoid Being Fooled by Market Volatility

March 31st, 2017 by VantagePoint Software

Don't be fooled by market volatility

After months of running uphill despite pundits consistently saying market volatility will cause the uptrend to run out of steam, the market is finally beginning to look like it’s running out of steam. As we approach April Fool’s Day traders need to ask themselves “Is it a trick, or is the market volatility defining a new trend?”

A trader only needs to look at the non-market influencers to understand how market volatility becomes prevalent. Economic and earnings news is positive but the threat of rising interest rates looms overhead. The general unease in worldly politics seems to have a spotlight on the tragic comedy that is Washington D.C. Where the talk of policy change positively affecting the markets meets a failure to communicate across the political party aisle.

It’s hard for a trader to determine whether this recent downward move has legs, or if it is just another period of uncertainty caused by market volatility. How can one maintain confidence to place trades when the news surrounding the market is in a state of flux?

The answer is simple. Dismiss it.

Don’t get fooled by the noise that is the news. Focus on the charts and the data. Focus on what an artificial intelligence is telling you.

The artificial intelligence in VantagePoint is up to 86% accurate and can do a better job than the average trader of collecting, crunching, and making sense of the data needed to find trades in the midst of market volatility. VantagePoint’s sole purpose is to find movement patterns in the chaos and give them to traders as market predictions. It’s the equivalent of using a bloodhound to track a scent. It’s been trained to do a single thing which makes it the best at what it does.

The below chart is a perfect example of what happens when you trust the artificial intelligence of VantagePoint. Himax Technologies Nasdaq: HIMX had a bullish crossover in early February. We see the market turns sideways roughly two weeks into the trend. The chart indicates four bearish days in a five-day stretch. Many traders would see this and get out of their position while patting themselves on the back as they think they just avoided an impending downward trend change.

Market volatility
After a great start, HIMX had a run of bearish days that likely scared away traders not using VantagePoint…

But, VantagePoint is smarter than human traders. It crunches the data and indicates trend changes with a crossover of the blue line against the black line. Yes, the blue line is virtually on top of the black line. But there’s no crossover. The pinching or tightening of the two lines indicates the trend has weakened, but that the overall trend was still up.

Those same traders previously patting themselves on the back missed out on doubling their profit. The trend did not reverse. Instead, it soared up to the $9.50 area (and is still climbing as we write this). If you had gotten in when VantagePoint first identified the crossover, you’d be sitting on more than 82% profit. All while the news surrounding the market during that time attempted to increase the volatility. While the recent news may worry you personally, it won’t have you worried about your positions in the market.

Market volatility blog
… but by trusting the artificial intelligence of VantagePoint traders stayed in the trade and more than doubled their profits enjoying 82% growth since the initial crossover.

So, as we recognize an international “day of fooling” take a minute to think about how you’re keeping yourself from being the fool. Don’t let market volatility fool you on April Fool’s Day or any other day. If you’re not confident your current tools can provide up to 86% accuracy the way VantagePoint can, maybe you’re already the fool.

Don’t be fooled by market volatility. Sign up for your free demo of VantagePoint today.

The best tools help you to avoid foolish decisions. Sign up today to receive a free demonstration of VantagePoint and ask our software specialists how VantagePoint’s predictive artificial intelligence can keep you looking foolish in the markets.

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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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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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Taking Advantage of Sector Rotation in VantagePoint

October 1st, 2015 by VantagePoint Software

sector rotation

Birds of a feather flock together, right? The same can be said for sectors of the market. This phenomenon, commonly known as sector rotation, allows traders to take advantage of economic cycles in which sectors tend to move in the same direction at the same time. By being able to identify sectors that are able to start trending, traders can gain a significant edge in the market.

Watch the video below as we identify the downward trend of the Basic Materials sector as well as some recent swings to the upside in the Healthcare sector.

Profitable trading opportunities exist everyday but traders must know where to look and when to move. With predictive trading software such as VantagePoint – you’ll never miss a beat.

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