Hot Stocks Outlook for the Week of February 21, 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 Grifols (GRFS), Legg Mason (LM), Goodyear Tire (GT), Tyson Foods (TSN) and Shopify (SHOP).
This Week’s Hot Stocks Outlook
Hello, again traders. And welcome back to the Hot Stocks Outlook for February 21st, 2020. Hope you all are having a excellent week out there in the financial markets and as always plenty to cover in this week’s Hot Stocks Outlook. So we’re going to go ahead and start out here with shares of Grifols. We got some financials here with Legg Mason, Goodyear Tire and Rubber, some big chicken stocks here with Tyson Foods, and lastly, Shopify, a market that we’ve highlighted several times over the past few months here.
But let’s go ahead and start out here with Grifols because this is a great example of how all of these indicators work and how you can really pair your trading style and timeframe with the tools that are provided here. So looking at shares of Grifols, what we have here is daily price action. So each one of these candles represents a full and complete trading day, and you will see right up against that price action, you’ve got a black line and a blue line, and we’ll go ahead and get to a couple of these other indicators later. But right now with the black line and the blue line, what we need to understand is that the black line on the chart, that is a regular simple moving average, or what we refer to as the actual simple moving average, very common technical indicator. And really where it’s weakness is that it’s only looking at the one marketing question, meaning it can’t understand how other markets are affecting where that average should be. And it’s also really just based on past price data. So it’s really a victim to previous price closes.
But how that works is you’ve got, you know, a 10 day moving average, takes the last 10 days, adds them all together, divides by 10, and sort of rolls forward. And it’s a good measure of where prices have been over a given period of time, but obviously, as traders we need to know where are prices moving next, right? So what we want to actually do is compare that black value on the chart to this blue line that you see, and for that value to be generated each and every night, Vantage Point is performing what’s called Intermarket analysis and utilizing specifically the technology of artificial neural networks to do it. So rather than just looking at shares of Grifols, what the technology is able to do is look at things like related ETFs, looking at individual stock relationships, this could be global currencies, global indices, futures markets, commodities markets, and these are all specific to the target marketing question. So these are determined by those neural networks to carry these significant relationships, and it actually uses that information to generate predictions for price.
So you can think of this as a couple of candles in the future that hasn’t yet occurred and actually utilize those predictions and build them into the value of these indicators, turning what was a lagging indicator into a forward-looking predictive tool. Now whenever we see that blue line or that value from the predicted moving average cross above the black line suggesting average prices, or average prices, the predicted moving average, so average prices are expected to move higher than this black lagging moving average, and that suggests prices are going to start moving higher.
Now in addition to the predicted moving averages, which are really our measure of the overall trend, what we have here at the bottom of the chart, you see that we have this indicator that can go from green to red and these updates after every single trading day. And this again, driven by that neural network technology, but really tuned to only look 48 hours ahead. So very short term strength or weakness in the market place. And you’ll see these periods of time where that neural index will go bearish, you get trading lower, you get lower lows, and volatility really has to do with this, of lower lows or lower highs coming in over that 48 hour period, but certainly don’t lose track of the overall trend.
And really lastly, here again, those neural networks are tuned to actually pick out next days predicted highs and lows. So you actually have intraday levels that you can go ahead and trade from to really fine-tune your entries, take targets, and really pair the timeframe of the indicator and the predictive tool to your timeframe and your trading. So you see here, once that blue line crosses above the black line, go ahead and use those tools within Vantage Point, to say, okay, well you can go ahead and get in at the early part of the trend, or maybe you want to go ahead and wait for one of these predicted lows to be hit, and you see a little bit of volatility there, you move a little lower than the predicted low, but immediately gapping up in this trend moving higher. Another predicted low hit here and a really nice opportunity to get these great entries on these reversals in the marketplace.
So we can see here that over the course of this, market’s up about 8% but really only eight trading days since that move down to the predicted low, but a good guide here of how each one of these tools works within the corresponding timeframe and can get you really great entries, but more importantly, manage the opportunity along the way and make the most of these opportunities.
Here are shares of Legg Mason and it’s exactly the same thing here. You have this blue line crossing above the black line going all the way back in January and you see again, you’ll get these little periods where the neural index may move down to that red configuration, and oftentimes what I like to look for is you know that’s suggesting that average prices are probably going to move and trade on the lower side of that predicted moving average, but as long as that blue line remains above the black line, the overall trend is still up.
And again, now you can go down to that shorter term timeframe and say, “Okay, well intraday, what price levels do I want to be accepting as a trader to get involved with this move and not have to take a significant amount of risk, right?” You can minimize the amount of risk and exposure you have to the market, and even go ahead and as a shorter term trader, target the predicted highs on these levels. So you have a place to go ahead and add to your position, but also some areas to go ahead and take some profit along the way, but certainly not lose sight of the bigger move. And you see that here’s a situation where we actually had a buyout offer here, but oftentimes you’re going to see this happen where you really need to be getting in the market ahead of time, right? By the time the news comes out, the market’s already moved and you can’t go ahead and benefit. Here we have a situation where all the way back in January is saying, “Look, this trend is moving higher.” Go ahead and you can manage that position with the help of those predictive tools, but clearly only want to be long here and you see about 25 trading days, market’s up about 37% over that time period.
Here’s shares of Goodyear Tire and Rubber and we talked about some of the weakness in some of the shoe companies. So, I don’t know if this is a rubber thing or what’s going on out there in the markets, but what the software is letting you know is that really since December you’ve had this crossover to the downside in shares of Goodyear Tire expected to move lower. And you’ll see again, you’ll get these periods where that neural index will highlight short term strength, right? Just 48 hours of very short term strength or weakness in the market, but the overall trend, that predicted moving average still to the downside. And you see when these things, the short term and the longer term trend get in line, you can really see those aggressive moves lower in price, and of course you want to go ahead and act accordingly.
So again, we can look at those predicted high and low levels that are coming through and really guiding you moving forward, and really what it’s all about here is having that overall trend, not overall trend, but overall trading concept in mind of what it is that you want to do, measure the volatility to go ahead and stick with those trades, and you see that very quickly, these things moving in the direction of that overall trend and predicted trading direction. So again, really nice opportunity to the downside here in shares of Goodyear Tire, shares off over 28% just in the past 41 trading days. So significant opportunity there, you see 500 shares on the short side of a cheap stock are trading options. You’re up over a couple thousand dollars just over the past couple of months here.
Here’s Tyson Foods. So we talk about when you tend to see similar stocks showing the forecast coming through at the same time. So I’m thinking of Pilgrim’s Pride, another one of those big chicken stocks, moving to the downside here. But here’s Tyson Foods, very clearly you see the separation between that prediction of the moving average and the actual moving average, suggesting this is a strong trend to the downside, and you see those significant moves lower, but also these little blips along the way where you want to understand when some short term strength or weakness is going to come and affect the type of trade that you’re taking, and not be getting out of the way and jumping out of your position, but actually using those price movements to go ahead and improve your overall position here. So Tyson Foods, really nice move to the downside. Certainly a great play to trade some options here, but off 13% just in the past 21 trading days. 500 shares are up about $6,000.00 almost in the past just 21 days of trading, so pretty much a month’s time there.
Now lastly here we got to look at Shopify, and this is a stock that we’ve brought through really repeatedly over the past few months. I actually checked and the last time we brought it through was about here on January 17th, and you’ll see that over the time since we’ve made that video, how have these forecast performed? And you see you’ve got these predicted levels to say, “Okay, well where do I want to come in and be a buyer if I want to participate in this move higher in Shopify?” And you see all of these opportunities here to say, look, buying down at this 470 level, clearly the way that you want to go, and another one of these big gaps higher in the market and the overall trend continues here.
So since about the 17th I think we’re up about 20% or so, but over the course of this entire move, this is about a 70% move to the upside. And you see early on these predicted lows being hit all the way down at 311 and just a fantastic opportunity to the upside. You see shares up over 70% in the past 62 trading days, going back to November. And really a great job of participating in a lot of that market strength here, specifically in shares of Shopify.
And just what I want to highlight here is we’ve got a lot of these tools like the Intelliscan feature, so we can go ahead and open up a new Intelliscan and show you how a little bit how this works. And really what it’s about is saying, “Okay, well what are the timeframes for these predictive indicators? What is it that we’re specifically looking at here and what is my trading style and
approach?” And you can really fine-tune a lot of these tools to identify the types of trades that work for you. So in this case, we can take an Intelliscan and say, “Okay, well, let’s look for markets that have been trending for we can say six or seven days or so to the upside.” Let’s look for that neural index to be to the upside as well, so that 48 hour forecast bullish. And even some of these shorter-term tools, we’ve got predictive differences, which again are looking at that blue and the black line and the relationship there. We can look and say, “Okay, well, where are those relationships and and where are those opportunities to go ahead and maybe look for long opportunities?”
And you’ll see that a lot of these things will come through. You can do some additional finer tuning here. But again, understanding that, “Okay, well, where can I look for opportunities to meet that timeframe?” Again, whether you’re shorter term looking for trend reversals, you may want to give yourself to the fresh one day old crossovers that occur in the marketplace. But again, utilizing these predictive indicators to match that timeframe and approach that you have to the market and get the better of those market participants when you’re participating in a particular trade or trade idea, being able to manage the opportunity to the best of your abilities and take the most out of it and limit those risks and exposure you may have out there.
So once again, just some really great opportunities happening to the long side and the short side. You know, you’ve got sectors and certain areas of the market doing some very different things, but certainly keeping that opportunity open to make some significant profits. Certainly things like Shopify, great opportunity to get involved early, but also use some of those profits to keep managing the opportunity and really making a boatload of money here. So once again, this has been our Hot Stocks Outlook for February 21st, 2020. Thank you all for watching. Best of luck, and bye for now.