Tensions with Iran are growing again, and there’s an opportunity here if I go back to evaluating what’s worked in this scenario in the past.
One way I can do so is to reflect upon some of the most powerful signals we’ve seen from the AI-powered Stock Forecast Toolbox. For me, I know one of the most bullish stocks in March is on the top of my radar, and when I check the Toolbox and the market, I feel a sense of relief that I didn’t miss this one already.
The stock I want to highlight today is CF Industries, (CF):
The stock has been firm and looks ready for a push higher, and after an initial bullish move today, it’s pulled back to the opening price. This is certainly a more attractive entry point rather than chasing the move!
For now, the Toolbox isn’t ready to commit to a major bullish move even if I’m already leaning that direction. I expect that will change, but I have to trust the due diligence. The AI-model updates daily to give me a new projection, and if it updates to my thinking, I am that much more confident, and if it doesn’t, I want to adjust. My thought today is to start with a call position, like the October 16th $130 call. If the model doesn’t get more bullish in the next two days, I can convert this into a call vertical by selling the October 16th $140 call, leaving me with an October 16th $130/$140 call debit spread. If the model gets more bullish, I’m set for a homerun and don’t need to adjust! That’s where the trading plan really kicks in – not just knowing my entry, my target exit, and my stop loss, but also knowing what would cause me to want to adjust the position and how I want to do it. But the first step for me is looking at the AI-Model and seeing if it can help me structure that trade idea and know when the timing is right!
Make sure to take advantage of the free 7-Day Trial of the Stock Forecast Toolbox so you can see what it can do for you!
If you have any questions, never hesitate to reach out.
Keith Harwood
Keith@OptionHotline.com
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