Hot Stocks Outlook for the Week of

April 24, 2020

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This Week’s Hot Stocks Outlook

Hello again traders and welcome back to the Hot Stocks Outlook for April 24th, 2020. Hope you’re all having a great week out in the financial markets and as always, plenty to cover in this week’s outlook. So we’re going to go ahead and do things a little bit differently and really focus on this concept of intermarket analysis and that’s really what the backbone, a vantage point is, in that it’s looking at these relationships between markets and how they affect other markets.  So when you’re looking to trade individual stocks, well those individual stocks are highly effected by the S&P 500. When you’re looking at stocks that are related here, we have Dominoes and Yum Brands, those markets are going to play off of each other and looking at one market can give you some valuable insights to a another opportunity. So looking here at the S&P 500 when I just want to highlight is going all the way back here, now a month all the way towards the end of March, we had a very strong signal from the S&P 500. You see this crossover to the upside between these blue and black lines?

DOMINOS

So let’s explain all of this. Now this black line that you see right up against the chart, that is a regular simple moving average. So we refer to this as the actual simple moving average and what that is is a very common technical indicator. It just looks at past prices, adds the past 10 days together, divide by 10 and gives that rolling number moving forward.

 

YUM BRANDS

Now the problem with tools like that is that they only look at the past. They really get dragged around by the most recent price action and obviously, as traders we want to understand, okay, well if that’s where prices have been, where are prices moving forward? So to do that, what we want to do is take a look at this blue line that you see against the chart and this line for this value, essentially every night to be calculated, Vantagepoint is performing what’s called Intermarket analysis.  What that means is when forecasting for things like the S&P 500, it’s not just going to look at past prices of the S&P. It’s going to look at things like global indices like the DAX or CAC 40, those a European stock indexes. Things like the Nikkei over in Japan. It will look at global currencies like the dollar index, Euro. It’ll look at global interest rates. It’ll even look at individual stocks and ETFs that are known to share a very important correlation to this target market being the S&P 500 futures and obviously the S&P 500 futures are going to have an effect on individual stocks.  What we see here is a very strong signal as far as that blue line crossing above the black lines suggesting that average prices, forecasted via this predicted moving average, are moving higher than that black lagging, moving average and letting you know that prices are expected to move higher. As long as that blue line remains above the black line, prices are expected to go up. So what does that tell you about stocks and where you should be looking for opportunities in the market.

 

S&P 500

Now additionally, at the very bottom of the screen you see you have this green goes to red and this updates every single day at the right hand portion of the chart after the next trading day and what this indicator does is it’s also derived via those intermarket relationships but forecasting very short term strength or weakness, 48 hours ahead. So you can think of that as really two candles ahead, short term strength or weakness and that can help you understand, okay, what’s the volatility going to be? Where is this market likely to trade and are we likely to see a continuation, a trend, or possibly a little weakness before things improve.  At the very right hand side of the chart, you see a predicted what is called the high and low predicted range here and this again, derived via those intermarket relationships, utilizing the technology of neural networks, to really pinpoint intraday levels for you to set limit orders, take profit targets and manage your trading style effectively.  So when we look at the S&P, we can look at these predicted highs and lows and see how accurate these have been over the course of this trade. But more importantly, what I want to highlight is, well, how important is the S&P when looking at well, should I be getting long or short and where should I be looking for opportunities?

Seattle Genetics

Seattle Genetics

Well, when we look at Seattle Genetics here, here’s this opportunity again. The same time period and where this is very effective is we have this feature actually called the Intella scan, which will actually present you with fresh opportunities as far as that blue line crossing above the black line. You can set any indicator to make sure that things like your neural index are bullish, make sure your predicted high and low range are slanted upward.  But what we see when we run our nightly scans is that Hey, there’s opportunities moving to the upside. The S&P has just forecasted a move to the upside and if we’re going to be looking directionally to take any trades, we should therefore look for fresh opportunities to the upside.  So with Seattle Genetics here we see this blue line crossing above the black line telling us, look, okay, let’s use those predicted high and low ranges if we really want to get good intraday levels on the opportunity. So trend traders can say, okay, well I know this is the trading day. I need to go ahead and get long but what’s really effective is using these levels to manage an opportunity.    So what you’d be doing is buying at or near the predicted low or even in the lower half of that range there and targeting bullish opportunities to the upside. You see that you get these, these really nice opportunities to get involved in the market at a great price, know you only want to be long and potentially get a great entry but be able to manage that entry and take pieces away from it along the way.  So here in shares of Seattle Genetics, a really nice opportunity as the S&P and the broader markets have moved higher. This stock individually up about 37%. So when you can find that individual stock that looks strong, it’s likely to outperform the move that you’re going to see from the index and you can therefore take a smaller position, don’t have to take as much risk, and can still make a lot of money here.

Take-Two Interactive Software

Take-Two Interactive Software

 

Here’s Take-Two Interactive Software. So you know, again, you can think very basically of things like software companies, healthcare things, probably better to get into then retail or restaurants, right? Well, here’s Take-Two Interactives. We see we get that crossover to the upside and pretty much a straight shot here. So this indicator at the bottom, upwards of over 80% accurate. So, you’ll have days where it gets it wrong. You see here, we actually don’t get much weakness from this neural index but look over the course of the entirety of this month, you’ve had a pretty straight forward forecast as far as a huge amount of separation between that blue line and the black line, suggesting that the average prices are much higher than this lagging, moving average and this is a very strong trend.  Additionally, every single day, getting that 48 hour view that prices are going to move higher. Act accordingly, look towards things like vantage points, predicted lows to get a really great intraday entry but very clearly to the upside is all you’d want to be doing here. And again with that guidance from things like the S&P 500 that say, look, stocks are moving higher. Sure there is a lot of nervousness out there in the markets, but as far as the probabilities go, you’ve got very clear forecast suggesting that at least in this market, you want to go ahead and be a buyer.

F5 Networks

F5 Networks

F5 Networks here. Same thing here where what happens is because of the correlation in stocks, and stocks especially you see this, when you run that Intella scan, you’re going to see a lot of opportunities come through at very specific times. So some nights you may run the scan and get only, 10, 15 opportunities. Well, that’s probably not suggesting there’s a big shift in the overall marketplace.  Here in F5 Networks though, you see how this ties in with the same period of Seattle Genetics, Take-Two Interactives. The S&P moving higher and here in F5 Networks, very similarly getting that blue line crossing above the black line, now an entire month here, but you’ll get these periods of time. You see this neural index saying, look, expect some weakness over those 48 hour windows that that neural index forecast is bearish but as long as that blue line remains above the black line, this trend is to the upside. And you see how very early this says, okay, well now everything is ready to go ahead and accelerate and that’s where you’re getting gaps in the chart and that aggressive move higher.  Again, we can look at those tools like the predicted highs and lows and this is where things are again really effective where you see the neural index goes bearish here. Also your predicted high and low ranges are going lower. So you’re getting those two signals at saying expect some weakness over the next couple of trading days. Intraday, this is where you should expect the market to trade. Make sure you don’t have stops sitting all in this level to get stopped out and then miss the really nice opportunity as the overall trend continues.    So another opportunity here in F5 Networks from where that crossover came to the upside, over a 20% advance here, 500 share position here for about $11,000 here, just in the past month. So you’ve seen very clearly, we looked a few weeks ago looking at Amazon. Again, when you see things like Amazon, Microsoft turn higher and come through that Intella scan, it lets you know that Hey, something’s going on here. There’s an opportunity and if we get a nice rally in trend, great, but the vantage points also going to let us know when that trend is over and when we should now look for stocks to resume to the downside.

 

DROPBOX

Dropbox

More recently we’ve had shares of Dropbox. See this crossover to the upside, a lot of strength from the neural index. So even if you don’t recognize things a month ago, you’ll see some of those opportunities where particular stocks start to turn higher and of course have the tools to come in and manage that opportunity to effectively, to know that, Hey, if I want to be a buyer, in this case, you’d actually open up buying at the the gap down open there and you see how the market wants to trade back towards that predicted level, but very clearly here you don’t want to be short.  You only want to be buying the market, taking profits on longs and as a trend trader, getting a really nice entry as the market continues higher here and we see a pretty nice move; shares up, just in the past nine days, just about 10%, about 9.76% so far. After today, we’re probably going to exceed that 10% mark. But again, it’s 500 shares. This is a very cheap stock here. You’re already up close to a thousand dollars.  More recently as well, seeing Domino’s Pizza and also Yum brands here. So very similar stocks. Again, when you run that scan, you’re going to see that, well, what’s going on with some of these restaurant brands and a little bit more effectively, more sort of take out brands within a restaurant, but seeing these crossovers to the upside.  Look at this just straight shot from the neural index. I mean very clear here that every single day that this forecast is coming through, you’re getting one, a lot of separation between that predicted moving average and the actual moving average, but that 48-hour forecast saying, look, this trend is up. Your predicted high and lows can help you as far as those intraday entries and typically within 48 hours of you getting an entry from a predicted low, you’re getting that market accelerate higher and hit some of these upward profit targets at least from the predicted high if you’re that short term of a trader here.  So another great opportunity here in shares of Domino’s and not very different from what we’re going to see in Yum brands here. See about a 12% move higher. Again, 500 shares, you’re up about $20,000. Even a hundred shares here, doing quite well up about $4,000 in that case.

Here going over to Yum brands and again, very strong crossovers to the upside here, right? So you see that separation, really extreme sort of separation here, from the predicted moving average and the actual and using that guidance from those intraday levels to say, okay, well if this is the place to be, if I should get long stocks, if I see that as a sector, this area in the market is doing quite well, where should I be looking for intraday entries to make the most of that opportunity and limit how much you have to risk to get into the opportunity but still do well as the market advances. We see shares up again over 20% over just the past 10 trading days. So more recently seeing some of these areas in the market turn higher.  This is really the whole point and understanding that markets share very important valuable information between those markets. Right? So what happens in the S&P is going to affect your stock trades. What happens in the oil market is going to affect oil equities. And so if you can understand those relationships, which that’s what this technology is able to do and incorporate that into your overall analysis and your overall system and how you want to trade the market, gives you a huge advantage over all those tools that simply look at where the market price has been, plot that moving forward and are just really reacting to what most recently has occurred in the market and really have no predictive capabilities at all.  So once again, this has been our Hot Stocks Outlook for April 24th, 2020. Thank you all for watching. Best of luck and bye for now.