Hot Stocks Outlook for the Week of December 20, 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 Eli Lilly (LLY), Amdocs (DOX), Ironwood Pharmaceuticals (IRWD),  Humana (HUM) and Tenet Healthcare (THC).

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This Week’s Hot Stocks Outlook

Hello again traders, and welcome back to the Hot Stocks Outlook for December 20th, 2019. I hope you all are having an excellent week out there in the financial markets, and as always, plenty of opportunities to cover in this week’s Outlook. We’re going to start out here and really focus on a lot of the healthcare and biotech stocks, which has been a theme, really, over the past couple of months here within the Hot Stocks Outlook. But we’ve got Eli Lilly here, Amdocs, Ironwood Pharmaceutical, Humana and Tenet. And specifically Ironwood, Humana, Tenet Healthcare. We’ve all gone over these opportunities over the past couple of months, and all these opportunities really started in October. But it really gives you a great point of reference to say, okay, well where is the strength in the marketplace? Where should I be focusing my attention here, with the VantagePoint shorter-term forecast?

Eli Lilly (LLY)

So starting out here with Eli Lilly, what we have here are daily bars and candles. So you see that where there’s a black line and a blue line, right up against those daily candles. And what that black line is, is a regular, simple moving average. If we go ahead and bring our cursor here, we can see that it says the actual medium-term average. And that’s a very common technical indicator. It’s really just a simple moving average. Looks at the past price data over the last 10 days, adds those days together, divide by 10, and you get that rolling moving average. And that’s a very common technical indicator, but it really lags the market place and it doesn’t give you any good information about where the markets are headed next. It really just lets us know where the markets have been.

Eli Lilly Stock Movement

 

So what we want to compare that value to is this blue line that you see against the chart. And for this value to be generated after each and every trading day, VantagePoint is performing what’s called Intermarket analysis and it’s utilizing the technology of artificial neural networks to do that. So what it does is it looks at other healthcare stocks, it looks at ETFs, it looks at futures markets, the S&P 500, the NASDAQ, and how all these other markets are known to drive and influence, in this case, the target market, Eli Lilly, moving forward through time. So what we’re able to do is compare that blue line, or that predicted moving average, to the actual moving average, to let us know where our price is expected to move going forward.

Now in addition to that predicted moving average being generated via those artificial neural networks, there are also some other tools on the screen here. You see at the very bottom there’s a green and a red indicator. It goes from green to red. It’ll flip back and forth each and every trading day. And you also have a predicted high and predicted low. Now this first indicator at the bottom, this is an extremely accurate, upwards of 80% accurate, indicator. It’s only looking ahead 48 hours at a time. So once you have the overall trend direction, this will help you understand, okay, well, is there going to be short-term strength or weakness in the market?

Now, if I want to be long in the market and there’s short-term weakness coming in, well, that actually means go ahead and buy on the dip. Take advantage of that short-term weakness because you want to be long anyway. In addition, you also have every single day, a predicted high and low level generated. So these are great levels to go ahead and set limit orders for your entry price. Also on the top side, if you’re looking to go long, profit targets for some short-term trading. And really see how this forecast works as far as the overall entirety of the forecast, with the combination of these indicators. We have the overall direction up neural index, you’ll see. You’ll get some of these windows where you see the neural index goes down to a red there, quickly back up to a green. How I like to look at the neural index is when it goes bearish and the trend is up, you’re likely to trade on the lower side of the predicted moving average. But again, very, very short term as far as how forward that indicator is looking.

And then, of course, we can bring in those predicted highs and lows. And so what we’re looking at is the actual prediction before the trading day occurred. So you see this is the prediction going into today. And you see that if you trace that back, these are the actual predictions against the actual trading day before it occurred. And what it allows you to do is say, okay, well intraday, where is there a good level to get in? What’s the overall trend direction?

And make sure that you’re not just getting involved with the market, and in this case we see it, the market has a really nice rally over the past month here and moves up. We can see a overall 14%, about 14 and a half percent. You see about 500 shares would net you about $8,000. But you can get more than that 14% out of there, because you’re buying in at good levels, able to add to your position strategically as the trend continues. It’s a really fantastic opportunity. I know there’s a higher price stock, but even if you’re buying just a hundred shares here, you’re doing quite well here. An option contract. Just one contract going to appreciate very highly in value here. You see this one up $1,600, just on a hundred share position.

Amdocs (DOX)

Amdocs here. Another opportunity, as we see. Again, here at the beginning of November, you get this crossover to the upside. Again, you see that this neural index here, this 48-hour indicator, it’ll warn you of some very temporary or short-term weakness. But as long as that blue line remains above the black line, and you see each time the market trading at the lower side of that predicted moving average, generally what you’d expect. You expect to trade above and below an average. That’s what an average means. But what you want to do is say, okay, well, there’s a really nice opportunity here. You see this market pushing up against $72 per share. And certainly, there’s a $10 rally there just over the past, let’s see, 35 trading days. But as a shorter-term trader and someone who’s adding to their position as a trend trader, you’re getting multiple opportunities along the way to know, hey, I should be heavier on my position at these predicted lows, and go ahead and take profit on what could be that core position, as far as the overall trend trade.

AMDOC

But you see here we’ve got one, two, three, four, five, six, seven, eight, nine, 10, 11 entries that are all pretty quickly moving into profit. And you see that blue line still saying, look, the trend is up. You don’t want to go ahead and get out of the position. You see that you get a little bit more narrowing of the predicted moving average against the actual moving average here, and you see things run a little bit sideways. But overall the trend is up, and you see as that neural index goes back to a green, you start rallying out of that move, and easily a three, $4 move there to the upside there, in shares of Amdocs.

Ironwood Pharmaceuticals (IRWD)

Now, Ironwood Pharmaceuticals. Now, we talked a lot about this early period in October. This is where all the healthcare and biotech stocks really started moving up. And it’s been really the best area of strength as far as this S&P rally. And what I really want to point out is, remember when the S&P, really early on in December, it had that pullback in the marketplace. Well, if you’re trading these stocks, you don’t want to go ahead and get shooken out of the position. You want to go ahead and maintain that position, and understand, okay, well, how should I manage this to stick around for the longer term? And you see, since those opportunities, as far as the market dipping down from the 3rd of December, this market up another 11%. But we covered this all the way back in mid-November here. You see overall the markets up pretty nice percentages. You’re up 52% just in the past 48 trading days. So even 500 shares, which is a tiny position here with only an $8 stock, has you up over a couple of thousand dollars.

Ironwood

But more importantly, how would you manage this opportunity over the past month or so? So you see, okay, well, where are these predicted levels coming in and letting you know, hey, there are good opportunities here to go ahead and add to your position, take some chunks out of the market at these predicted highs, and have some really good entries and also profit targets, to make the best of these opportunities. And obviously a 50% move in a stock is going to do a lot for your trading month and trading year and really moving that equity curve in the right direction.

Humana (HUM)

Here’s Humana, and this has really been great opportunities all within the healthcare insurance area. United Healthcare, Tenet, Humana. Pretty straightforward here. And again, that period in December where we started to sell-off in the S&P, you don’t want to get knocked out of your position. And you see very clearly here, look, the trend is still up. These areas of strength are holding on pretty good here. And you can use these predicted levels. And you see how accurate this is, as far as there’s actually a gap down here, where if you’re buying at that limit, you’re getting filled at the open and immediately moving into profit. And you see ever since then about two or three more positions or opportunities to go ahead and get long, and things once again accelerating to the upside.

Humana

So again, this whole sector, it’s not as if it’s just a one-off where you see things like United Health or Humana start… I mean, the whole sector is showing a lot of strength here. and now you have shares of Humana up 42% in just the past 49 trading days. It’s really an opportunity that you want to understand what’s going on there and say, okay, well, let me focus my attention. And even if you didn’t get in at the beginning here, understand that this is the area of the market, healthcare, biotech stocks, where there are some real trading opportunities here.

Tenet Healthcare (THC)

Here, Tenet Healthcare. We can go ahead and back this out again. Over just the past couple of months here, as we’ve seen these opportunities move higher and higher, well, how has the daily predicted highs and lows and the neural index held up? Well, I’d say they’ve done a really good job here, as letting you know, intraday, where do you want to be a buyer, and within literally 48 hours of each one of those positions, you’re already moving into profit, and the overall trend continuing. And you see even how these predicted highs do a really great job as far as intraday. But overall the trend very much to the upside here, in shares of Tenet, Humana, Ironwood Pharmaceuticals. I mean, it’s just very obvious that this is the area of strength. Go in with the help of your shorter-term forecast and tools, and make the best of each one of these opportunities.

So once again, once the S&P, I mean, once it starts turning lower and we see some weakness, we can take some short positions or take some profit on some of these opportunities that have been trending up. But this is the benefit of VantagePoint saying, look, stay in these positions, manage them so that you’re taking less risk, essentially, as you take profit, add back in at lower levels. But of course, a 55% rally, 40% in just shares of Humana.

Really fantastic opportunities all spread throughout these sectors, and it’s something that throughout the year you just don’t want to miss out on these sorts of opportunities. And they all generally come through at the same time. So VantagePoint has this intellscan feature that really makes it quite obvious that okay, all of these particular stocks are starting to turn up. Pay attention and focus in on those areas of the marketplace.

So once again, this has been our Hot Stocks Outlook for December 20th, 2019. Thank you all for watching. Best of luck, and bye for now.

 

AMDOC