Hot Stocks Outlook for the Week of
August 9, 2019
The Hot Stocks Outlook uses VantagePoint’s market forecasts that are up to 86% accurate, demonstrating how traders can improve their timing and direction. In this week’s video, VantagePoint Software reviews forecasts for Yamana Gold(AUY), AK Steel Holding(AKS), HollyFrontier(HFC), Franklin Resources(BEN), and Workday(WDAY).
This Week’s Hot Stocks Outlook
Good afternoon traders, and welcome back to the Hot Stocks Outlook for August 9th, 2019. Hope you all are having an excellent week in the financial markets and as always, plenty to cover in this week’s outlook.
So we’re going to take a close look at a lot of the basic material stocks, which we’ve really been looking at really since the beginning of June here. We’re going to start here with Yamana Gold, we’ve got AK steel and also HollyFrontier, more in the oil side of things. And then we’re going to look at financials. We’ve got Franklin Resources here, and lastly, workday, a tech stock here.
But starting out, let’s take a look at Yamana Gold. And what we have here are really the daily bars. So each one of these candles represents a full and complete trading day, and against those candles, you see that there is a black line and a blue line against the chart. Now, the black line that you see there, that is a simple moving average, very common technical indicator. We refer to it as the actual simple moving average. That’s a really good barometer of where prices have been over a given period of time, but obviously, we need to understand where are prices expected to go next to then make those trading decisions in the market. So what we want to compare that black line to, which again just plotting the last 10 prices, add them all together, divide by 10, you can create a moving average. But what we want to compare that value to is this blue line generated via the artificial intelligence found within the VantagePoint software here.
So when VantagePoint is generating its predictive indicators, that being all the indicators that we’ll get to here, it’s utilizing artificial neural networks, which is a type of artificial intelligence, and it’s performing what’s called intermarket analysis. So you can imagine in a stock like Yamana Gold, well that’s going to share a strong correlation to things like the GLD ETFs, things like the futures markets for gold, other mining stocks, other mining ETFs, things like the dollar index, currencies, commodities, and even interest rates. So what this software is able to do is analyze all of those what’s called intermarket relationships, how all those different markets effect, drive, and influence the one target market that you, the trader, needs to go in and trade and then uses that information to generate future prices. Those future prices that are predicted future prices are then built into these indicators to make them much more effective.
So when we have that blue line cross above the black line, so that prediction move above the actual, it’s saying average prices are expected to move higher and you’d, therefore, would want to get along the market.
Now, in addition to that indicator, we also have you see this green or red indicator at the bottom and that is a very, very short term indicator. It’s only looking ahead 48 hours at a time, so you can think of it as very short term strength or weakness in the marketplace, and to really round out the entirety of these forecasts, you’re also given a predicted high and predicted low. So an intraday level to go ahead and place limit orders, set profit targets, and so on.
So what we see here is at the beginning of June when things like the XME, metal and mining ETF, things like gold started to move higher, so did shares of AUI and we can see how all those forecasts work together as far as the predicted highs and lows. When you understand, look, I want to go ahead and make sure I’m getting along this market and there’s a great opportunity to go ahead and set a limit order there and get involved with the market.
Now, you see as the market moves forward, this neural index goes bearish and says expect some weaker prices over the next couple of days, and what I usually like to do is understand that says, okay, well if we’re going to get some weaker prices over the next couple of days, we’ll try to buy at those predicted low levels, but also look at it in reference to the predicted moving average and understand that we’re likely to see some price action move below that average, right? Because we can see prices above and below an average over time and that can help you, again, improve that overall entry in price that you’re getting into the market, and this has been a really fantastic opportunity where we see we’ve got multiple entries over the course of this market, but you know, absolutely huge trade here.
The market’s up over 74% just in the past 48… or two months here, right? So since the beginning of June, and multiple opportunities along the way to use those predicted lows to add to your position. So if you’re scaling into the position and understanding, look, as long as that blue line remains above the black line, you still want to be a buyer in the market.
And you see pretty much if you take an entry on this market within 48 hours, you’ve got the market moving higher and those average prices from again the predicted moving average, really guiding and moving forward, and you see still a lot of separation there between those values. So a huge opportunity there. Market up over 75%. If you buy literally 1000 shares of a stock that was trading down at $2 per share, you’ve already made $1500. So every thousand shares making about $1500 just by holding that position over the last couple of months and you know, multiple areas here to add to that position over time.
Now let’s take a look at AK Steel because there are very similar opportunities here but more recently getting another turn higher here, and you see that for the past month here we’ve had this forecast very strongly to the bullish side of the market. The neural index you see goes bearish here and you get some dips below that average price, right? But there’s still a lot of separation between that blue line and the black line and you see a really nice move over the course of what’s now really just been a couple of weeks here.
So AK Steel moving higher towards these predicted highs, but just over the past couple of weeks now this market’s up 21% and you’ve had the help of those predicted values. So you see here, this predicted low coming in here, here, here, great levels to be adding to that position, and in a lot of these areas here like this day and this day, you’re going to get filled at the open when that market opens up and get some really great entries in that overall uptrend, right? So really nice opportunity there, over 20% just over the past couple of weeks.
HollyFrontier. So again, at the beginning of June, a lot of these things started turning higher and have weathered the storm of the last couple of weeks fairly well. And you see that there’s plenty of places where you are getting that blue line crossing below the black line and stocks moving lower but not everywhere, and you want to stick with these forecasts as they’re going to help guide you and stick with those positions over the longer term.
So again, we see here this market, you know, really nice entry at the beginning of this move, the market consolidates a little bit, more entries along the way, and a great tool to help you add to a position over time. So when you can take accumulated profits and add into those positions at better and better prices using your profits to take essentially a bigger position, that’s where you can really sort of knock the cover off the ball and make a significant improvement to your trading equity and make a really nice trade here. So really great opportunity, again, this being in the oil space and there being a lot of volatility around that, but you still see overall the market’s up 25% since these forecasts started moving to the upside. You see a little bit more recent volatility coming in here, but also still some separation. That blue line is still above the black line.
Now moving on towards the financial stocks, and so this is where things get a little bit different and you see that in this case for Franklin Resources, not only do we have this crossover to the downside, so a good place to hedge your portfolio or just take a short position. The neural index has never gotten bullish here. So there’s never been those opportunities that say, hey, hold on, maybe go ahead and try to get a better position at a higher price if you want to remain short, and just a huge amount of separation between the predicted moving averages. So, just a really great entry on the short side of this market.
We see that what’s really great about the technology here is its ability to adapt. So you see that you bang against these predicted lows over the next couple of days, but you get these values always changing and sort of updating and letting you know that, okay, well you don’t have to chase this market, right? So when it closes here, don’t go in there and look to just start chasing it, wait for those better prices, and you see, you get a pretty good average entry as far as a trend trade goes where you’re not chasing anything and you’re not sticking in the market for you know, days and days as the market moves against you.
This is where things can get tricky right, where the market closes on an up day, it closes at the high. But to really get involved in that move, that’s really where you’ve got to be shorting the market from, and you see that once the market really starts to move, you get gapped. It gets a lot more difficult to maintain that position and capture and really the entirety of the move here. So a really nice opportunity here.
We may see some of these markets retracing a little bit and getting some volatility, but the trend is still down. Just a huge amount of separation there you see between that predicted moving average and the actual, and we still haven’t gotten any move from the neural index suggesting things moving higher here, but market down over 13% just in the past 11 trading days. So again, easily a few hundred shares here, you know, you’re making about $1200, $1500 just over the past couple of weeks and not only having that place to get short, but these other places where those trends have persisted and VantagePoint said, look, the trend is still up, maintain those positions but don’t ignore the weakness that you’re seeing in some of these different sectors of the market.
Here in shares of Workday, another good example here where things really started to turn down in certain stocks and you see here that we get this crossover to the downside, but here’s what I really want to show you where this neural index can become really helpful in letting you know that, hey, you know, expect some price action above the predicted moving average, right? So over the next 48 hours or the subsequent candles coming through, expect a little bit of strength but still understand that the blue line is still well below the black line. The trend is still down and make sure that you maintain that overall position as a trend trader.
So we see here some really nice entries again. I can short the market here. You see we come towards those predicted lows, so if you’re a real short term trader, take some of your profits and manage the position, but always able to react at these predicted levels so that entry day you’re getting a good addition or then taking some profits at a good entry day level as well, but overall really only going short and maintaining that short position here.
So shares of Workday here you see average price probably around here, but really nice move to the downside, again over 13% just in the past 10 trading days. So this is where things can get really tricky for traders is we had a really nice move higher over June and July months and things pretty much going straight up. But there are those danger signs out there in different areas of the marketplace and you don’t want to stick with a trade that’s not working, whereas when you have a trade that’s working and those blue lines remain above the black line signaling the trend is still up, you see… I mean the neural index here, even over those short term windows saying, look, there’s a lot of strength here. Maintain your position in these areas of the market. But go ahead and avoid these other areas where there’s a lot of weakness and this is really sector-wide. You know, you see this across a lot of the different financials, a lot of the different tech stocks saying go ahead, get defensive and get involved with the short side of the market.
So that once again has been our Hot Stocks Outlook for the week of August 9th, 2019. Thank you all for watching. Best of luck and bye for now.