Hot Stocks Outlook for the Week of
April 3, 2020
The Hot Stocks Outlook uses VantagePoint’s market forecasts that are up to 87.4% accurate, demonstrating how traders can improve their timing and direction. In this week’s video, VantagePoint Software reviews forecasts for Limelight Networks (LLNW), Macerich (MAC), Two Harbors Investments (TWO), Macy’s (M), Meredith (MDP) and Sleep Number Corp (SNBR)
This Week’s Hot Stocks Outlook
Hello again traders, and welcome back to the hot stocks outlook for April 3rd, 2020. Hope y’all are having a great week out in the financial markets and as always, plenty to cover in this week’s outlook. So we’ve got plenty of markets here today. We’re going to start with a stock Limelight Networks. We’ve got [McCarrick 00:00:17], Two Harbors Investments. These are actually real estate property companies. We’ve got Macy’s, Meredith, and lastly Sleep Number Corporations. So a lot to cover. But what I want to do is really highlight here, Limelight Networks, to really highlight how all of these indicators work together and they work the same on each and every chart. So whether we’re looking at this stock or the subsequent charts that we’re going to take a look at a, it really works exactly the same way. So here with Limelight, what we have is daily price actions, so each one of these candles is a full and complete trading day.
And you’ll see right up against that price action, there is a black line there and also a blue line. Now the black line that you see on the chart there, that is a regular simple moving average or we refer to as the actual simple moving average. And it’s a very common technical indicator. And all it does is it looks back over the previous price action, takes all the close prices, adds them together, and then divides by that number. And all it does is really tell you where the market has been, right? It’s sort of a slave to that previous price action and what the previous closes have been. And obviously as traders we need to say, “Okay, well where’er prices going next?” So that we can capitalize on that. So what we have against that price data is that black line, but also you’ll see this blue value.
So for this value to be generated each and every trading day, Vantage Point is performing what’s called intermarket analysis. And it’s utilizing the technology of artificial neural networks to do that. So what that means is rather than just looking at past prices of the target market here, Limelight, it’s able to look at known markets that are driving an influencing the future price of Limelight. So that can be things like ETF groups. That can be individual stocks, global currencies, things like deep S&P 500, global indices, interest rates. So all of these global markets are known to influence and affect that market that you’re trying to trade. And that’s what the software is able to do is understand those relationships and actually generate predictions of future prices that are then built into to create these indicators. What were lagging indicators that only look at pass price are now utilizing predictive prices to plot their new values and make their predictions here.
So whenever we have that blue line cross above the black line, it’s telling us that average prices are expected to start moving in this case higher. Now in addition to that predicted moving average, comparison to the actual moving average. You look at the very bottom of your screen, you’ll see that you have this green bar, goes to a red, then back to a green. And this indicator is the predicted neural index, also utilizing this prediction, utilizing that artificial neural network technology. But it’s looking ahead very short term, so just 48 hours. You can think of that as two candles. Short term strength or weakness in the marketplace. So you’ve got the overall prediction of the trend direction, short-term strength or weakness. And again that tuned to be looking ahead 48 hours at a time and keep updating every single trading day.
And then you also have, you see at the shadow bar at the very right, a predicted high and a predicted low. Again, that artificial intelligence, those neural networks pointing out those intraday levels before each and every trading day. So what will happen is that a real candle will populate this data here and we’ll actually see how accurate those predictions were and we can actually look back and see how accurate have the predictions been. And you’ll see that since this market went into an uptrend. You have these multiple intraday tools that are saying, “Okay, well if you want to buy, buy towards the lower part of this predicted range towards the predicted low. And if you want to sell, you want to be a seller up here towards the predicted high. Now if we take a closer look at this as well, what’s interesting about this is if you go ahead and look at the neural index, you see how it goes to a red configuration here.
Well the neural index is actually forecasting 48 hours ahead and it’s actually looking at predicting a typical price. So actually that includes the high, the low and the close. So actually again the highs and the lows for the next price action. And you’ll see this a lot where that neural index goes bearish and you’ll see these lower lows setting in over the next couple of days. But very clearly the trend, that blue line is still very much above the black line and you see very quickly that neural index getting green and the next two days seeing a lot of strengths. So this is where traders can use the accuracy of these forecasts to help get them involved in markets.
And you see here in this example we’ve had Macerich had a really nice rally or Limelight here, has had really nice rally just over the past eight trading days, 26% rally to the upside.
So we looked at a few opportunities to possibly look to go ahead and get long. It’s mostly in some biotech stuff, looks like some of this technology and communication stuff, but we’re still having issues throughout the market. So here we have Macerich and Two Harbors Investments, these being real estate, sort of commercial real estate properties and retail properties. Here with McCarrick. You see we got this crossover, this blue line moving to the downside back on 2/14 so this coming in really before a lot of the weakness from about 2/20 where the S&P and broader market started to turn lower. And you see this forecast here saying, look, the overall trend is lower, you’ll get this neural index and you see what happens here. You get that sideways price action every time that neural index gets bullish, things go a little bit sideways.
But the overall trend, that blue line is still well below the black line. And we’ve seen just a tremendous opportunity to short some of this real estate investment trusts and things like that. Shares off over 77% in just the past 32 trading days. And again, we looked at this last week where you see a lot of sectors turned down together. So when we’re looking at a lot of those shoe companies, oil companies, well here in Macerich, well 2/14, February 14th, you start to see this turn lower. You start to see things like Two Harbor Investments. So another one of these real estate property companies, you can take a look at two harbors investments, blue line crossing below the black line here. Again, similarly back here in February when the broader market started to turn lower, but then look at the accuracy of these forecasts.
Not just you know, the one move, but every single trading day here where we’ve had over a month go by and you see that neural index saying, okay, well there may be a little bit of strength there and some sideways price action, a little bit of sideways price action coming in here. But the overall trend, very weak. And when you’ve got that trend plus neural index, you’re likely to see that aggressive weakness in that particular market. So another one of these again, property companies, retail outlets, you’ve got things like Tanger retail outlets. You’ve got Two Harbors, Macerich here, these financial firms in commercial real estate here off 76% just in the past 27 trading days. So another one of these stocks just getting absolutely hammered here in just the past month here. And again, we can take a look at those things like the predicted highs and lows.
So you can see how going over the course of this entire trade, you’ve got a guide coming in each and every day that says, “Okay, well if you want to go ahead and get short, where should you be looking to go ahead and set those limit orders? And conversely also possibly taking some profit at those predicted lows.” So really great opportunities there in that space
And of course, well what are we going to see if commercial real estate and retail real estate is moving lower, well shares of Macy’s here, back there on 2/14 when we started to see the McCarrick start to move lower. Same thing, you start to see as crossover to the downside. Neural index, very bearish. Couple of days here where you see the market runs a little bit sideways again here as well. But the overall trend is still very much to the downside.
And this market’s here moved from about $16 per share. We can of course bring up those predicted highs and lows. See early on shorting the market up here at you know, above 16 a little bit below 16 and then maybe adding onto that position as the trend rolls forward. But really nice trade here, just a tremendous move and we’re seeing just absolutely just a bloodbath here in some of these areas, right? Another 73% move just in the past month here, 31 trading days, about a month and a half time. 500 shares short there, some option contracts. You’re about six grand just in the past month here.
Here, shares of Meredith. So this being more of a, I believe, magazines and things like that, but no different, right? Many places in the market just experience a heck of a lot of weakness here. And seeing this forecast and look, shares are moving lower, the market’s down about 63% in just the past 31 trading days.
You get these periods again where the neural index and we want to highlight each one of these indicators. Not just you know, one on its own being a be-all, end-all indicator, but when you pair all this together, you have a really good estimation of what’s going on. The trend is down. Well, here you may get some volatility, some sideways price action. Again here, things going a little bit sideways. Look at the distance between that blue line and the black line. Very clearly you should be shorting this market up at $32 per share, right now down about $12 per share and the trend’s still lower here. And lastly here, Sleep Number Corporation. Again, some of these kinds of mall stocks and retail companies and just not going to see a lot of foot traffic here.
A crossover to the downside, neural index bearish. And again, look at how the neural index come and makes these little adjustments, right? It’s only looking ahead 48 hours ahead. So it’s very short term, just a couple of trading days, but can let you know when that little bit of strength or sideways move is coming in but certainly don’t lose track of the bigger move, right? That overall trend and we see here, those predicted highs and lows. Again, going to do a great job of saying, “okay well look, look for these predicted highs short the market up at these levels. There may be some strength in here so make sure you don’t have your stops super tight on the market here, but the overall trend is still to the downside and you want to keep expressing it. And one of the really great benefits here is being able to get that position on and then use those accumulated profits to keep adding to your position. Taking profits along the way at things like the vantage point predicted low levels and locking in profit and then keeping those trades rolling here.
So we’ve had a lot of opportunities to do just that where markets are moving lower, even able to take a lot of profit and keep those positions on as the trend is still bearish here at. So you see market off about 66% in Sleep Number here in just the past 27 trading days. Again, 500 shares, shorts, has it up about 17 almost $18,000 here. So again you’ll see those things like Limelight, but again, they’re few and far between Vantage Points, doing a good job of pointing them out to us and letting us know that you know, okay, well certainly you don’t want to be short. These areas where you’ve got these strong crossovers to the upside, but much of the area or much of the market still performing very poorly, you want to be taking those short positions and creating that hedge portfolio with a lot of shorts, potentially some areas of the market where you can go ahead and get long as well. We looked a little bit at last week.