Hot Stocks Outlook for the Week of December 13, 2019
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 State Street (STT), Briggs & Stratton (BGG), lululemon athletica (LULU), Tenet Healthcare (THC) and Salesforce.com (CRM).
This Week’s Hot Stocks Outlook
Hello, again traders and welcome back to the Hot Stocks Outlook for December 13th, 2019. I hope y’all are having an excellent week out in the financial markets and as always, plenty of opportunities to cover in this week’s outlook. We’re going to go ahead start out here with State Street, a financial company there. We’ve got Briggs and Stratton, Lululemon, Tenant Healthcare, which have really been focused on that biotech and healthcare space and we’ll round it out here with salesforce.com.
Starting with State Street and really all of these forecasts really work the same way. Even if you’re trading a stock or the S&P 500 futures, everything’s going to work exactly the same way. What we have here are daily bars. You see with State Street, each one of these candles represents a full and complete trading day. Right up against that price data, you see that there is a black line and also a blue line.
Now, we can see the values of this bar right here. If we take a look at that black line, that is a regular simple moving average, we refer to it as the actual simple moving average. It’s a very common technical indicator. Just takes the last 10 close prices, adds them all together divides by 10. And the problem with indicators like that is that they’re lagging.
They really give you a good, a real gauge of where the market has been. But we need to, as traders know where is the market going next. What we want to do is use that value and actually compare it to this blue line that’s generated each and every night. For these values to be generated in what’s called this predicted forward-looking moving average, VantagePoint is doing a very sophisticated type of analysis called Intermarket analysis.
Because whether you’re trading a financial stock or S&P 500 futures or even live cattle, these markets share very important relationships with other markets out there. What we’ve done is actually train these neural networks to identify those important market relationships. Those can show up in markets like ETF groups, individual stocks within the financial sector, stocks outside of the financial sector.
Things like the futures market, like the S&P 500, the Russell, the NASDAQ, and also things like currencies. Things like interest rates. It’s looking at about 35 related markets and measuring how each one of those is affecting the future price of, in this case, the target market, State Street.
Whenever we have this situation where we see that blue line crossing above the black line, it’s essentially saying we’re expecting average prices to move higher than where they’ve been and you should, therefore, expect to go ahead and look to take long positions on the market. Now, in addition to that predicted moving average, there’s a couple of other indicators that really round out the entirety of the forecast here. If you look at the bottom of the chart, you’ll see this bar that goes from a green to a red back to green.
This is an extremely accurate indicator, upwards of 80% accurate over fed announcements, earnings reports, you name it. But it’s important to understand what it’s doing. What it’s doing is looking ahead 48 hours. Really just two candles at a time and letting you know very short-term strength or weakness in the market. When you understand the overall trend direction and you have that directional bias, this can help guide you, help you deal with that volatility much more effectively.
Lastly, if you look all the way to the right, we actually have a predicted high and a predicted low, that’s generated each and every night at 6:00 PM before the next trading day, so you really know exactly where you should be looking to go ahead and add to your position. Maybe go ahead and take a position and also do things like set limit orders to take profits. We can understand that okay, well we want to go ahead and get long, but we’re going to see how accurate all of those predicted highs and lows are each and every day.
Obviously, nothing’s going to be absolutely perfect here. You see you’re going to come outside the ranges, but overall when you understand, okay, directionally I want to be a bull in this market, you have a really great guide to know where to add to your existing position and as a short-term trader, really understand, okay, well if I can measure the overall trend, understand that there’s strength coming in or conversely even weakness, knowing where to buy on those dips and take a position.
You see here that the trend, very substantial trend that we’ve had a lot of fantastic trends all since really the beginning of October, but in addition to that, another 10 or so opportunities to go ahead and add to that position. You see here a 500 share position. We’ve got about a $59 stock here from where you would have started taking those positions, but market’s up $9800 on a 500 share if you trade the options about five contracts there, but you’ve got a 33, almost 34% rally in the stock in just the past 42 trading days.
There have just been so many tremendous opportunities that have all come through in that early part of October and have continued to trend and you want to catch the entirety of those moves. Despite a lot of the biotech and healthcare stocks, you see State Street moving really straight up over the past several months here, you’ve got things like Briggs and Stratton here. You see that some markets are going to change direction and you really want to be aware of that.
Now, I really prefer setting a directional bias, knowing, hey, I want to be a bull or I want to be a bear in this market. And then going in and executing those trades based on what VantagePoint’s guidance is. But you see here, you get this crossover to the downside, huge declines. You really don’t want to get caught up in that, but we did have a really nice rally going into October.
Again, when most stocks started to do well, you could have bought just about everything because the S&P bottomed out, started moving higher in October. We actually have a scanning feature that’s going to help you identify new opportunities that are coming through and what ends up happening is when you scan all these opportunities, they really stand out that a lot of the market’s starting to go into an uptrend and you can really get in line with that overall cycle and sectors that are starting to move higher. But you see here you had a really nice rally.
You see this neural index holding up and its green configuration. But, very early here, saying, “Okay, there’s some danger coming in here.” You get that big spike and ever since that neural index has been bearish, you get this crossover to the downside. But again, you have that guidance each and every day before the trading day to let you know that, okay, well back here you want to be looking to short. And you actually see on days like this, the predicted high and low range is actually getting elevated for you.
All of these red and black bar there, that’s the predicted high and low, that was provided before each and every trading day. You can understand that okay, well here’s where I want to go ahead and get long. You’ve got a couple of good entries down here if you’re a real short-term trader, but the overall trend is up. But then things really start to reverse and you want to make sure that you’re on the short side of that market or at least taking profits on those longs, and taking this chunk out of the market and moving on to something else. Some of those healthcare stocks or biotech that continued to trend higher, it would be a nice opportunity there.
Again, not all these markets are going to go straight up, but you’ve got that guidance to really say, “Okay, well how long should I stick in this position? How should I manage it moving forward? And where can I effectively add to the position and manage each one of these opportunities and really get the most out of it?” You see Lululemon crossover to the upside neural index, very strong going into the beginning of November.
Multiple opportunities here to be adding to the position. And again, you see how these predicted high and low ranges are slanted lower, letting you know, hey, expect some weakness. But the overall trend is still up and you see just multiple trades here about three or four or five, actually about, six-day trades there where you could buy on the dip. You’re making a profit within the next couple of days, but mostly you want to be getting in on the overall trend and getting the most of, again, these really nice rallies we’ve had all throughout the market.
Lululemon just in the past 22 trading days, so a calendar month essentially market’s up over 14%. 500 shares have you up about 14,500 bucks. Tenant Healthcare here.
We talked about biotech, we talked about especially the healthcare providers, Humana, UnitedHealth. Here you see another example of Tenant Healthcare and this is one of these opportunities where we’ve highlighted this all the way back in November, but you see that the trend is still up.
So you want to understand, okay, well I can take those profits, add to this position a strategically and know that, okay, well over the past month where do I want to be coming in if I want to go ahead and get involved in this move? So you’ve got to have five entries there, nice entries right before this big rally higher. So just again, UnitedHealth, Humana, all these things doing very well. And again, you can use this scanning feature to identify that and say, “Okay, well all of these socks are in strong uptrends. This is where I should focus my attention, especially if I’m a shorter term trader.”
Make sure that you’re in line with that overall trend and have good guidance for the very short term. Here, Tenant Healthcare up 68% in 44 trading days, 500 shares on a $22 stock has you up over seven grand in really two months of time. So again, these opportunities, it becomes very clear when you see this entire sector start to generate these crossovers to the upside. It really says, okay, well here’s the opportunity, here’s where it starting. Let me make sure I get involved. And more importantly, use these predicted highs and lows and a neural index and also the predicted moving averages to keep participating in that trend and really pull the most out of this 68% rally you have to the upside.
Shares of Salesforce here, another situation where you have this really nice crossover to the upside doing pretty well here, but the market is going to shift and change and you want to go ahead and recognize that and say, “Okay, well let me go ahead and take my profits. Maybe even look to go ahead and go short.” As we’ve seen some weakness in some of these different tech names here.
But here you see Salesforce crossover to the downside and again that guidance of those predicted highs and lows each and every trading day. So you understand that, okay, well you can be a buyer back here, you can be targeting these predicted highs, but once we get to this point it’s like, okay, well now definitely be taken some profit look to short up at these levels.
A really nice opportunity as the market goes from about one 46 to one 66 and now back down again, you don’t want to give up that $10 decline. Just go ahead and take your profits, find another place to go ahead and get long the market. I keep mentioning this and Intelliscan feature and we can really highlight some of this really quickly here. So I’ll go ahead and open up a new one of these. We can open up our markets. And what’s nice is you can just simply drag and drop whichever markets that you’re treating into some of these areas. And so what you may want to do is really filter these things out specifically for the type of trader and the type of trades that you like to take here, right?
If you’re a short-term trader, maybe you’re looking to go ahead and take a shorter-term positions in line with the overall trend. So again, we can look at things like let’s look at things like Salesforce here where we had a crossover to the downside things that are in a downtrend. And it makes it pretty easy to identify, okay, well where should I be looking for more opportunities here? Additionally, what I find really helpful is we can actually go ahead and you can take all of these predictive indicators and really look for exactly what you want.
Everything to meet that exact sort of trade criteria that fits your style and approach here. What I really like to do is even drag the category tab in here. Again, we can look for specific sectors, right? So let’s say we want to look for technology, we can go ahead and drag that down. See, okay, well, which markets here have been in a downtrend and predictive indicators still showing that downward move.
We’ve got Square here. We can open that up. And what I like to do is open up all of these markets that meet my criteria and then just simply scan through them and say, “Okay, well what’s going on in-market XYZ. How should I look to manage this opportunity moving forward?” Do I see those similar conditions across the entire sector, like technology or healthcare, biotech, those sorts of things?
Make it pretty clear that hey, there’s actually some opportunity here. Not only the sector is moving, but you’ve got this opportunity within individual stocks. And you see, again, once this market moves to the downside, really nice short entries here on Square after a really nice rally neural index, very strong.
But you want to understand when those things shift and change and make sure that you get out of the way, take the profits, or even get involved in a new opportunity to make money to the short side.
Once again, guys, this has been our Hot Stocks Outlook for December 13th, 2019. Thank you all for watching. Best of luck out there and bye for now.