Hot Stocks Outlook for the Week of

February 28, 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 Boeing (BA), ALLSTATE (ALL),  Exxon (XOM), Tyson Foods (TSN), Plains All American Pipeline, and Steve Madden (SHOO).

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This Week’s Hot Stocks Outlook

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 Boeing (BA), ALLSTATE (ALL),  Exxon (XOM), Tyson Foods (TSN), Plains All American Pipeline, and Steve Madden (SHOO).

Hello again traders, and welcome back to the Hot Stocks Outlook for February 28th, 2020. I hope y’all are having an excellent week out there in the financial markets, and as always, plenty to cover in this week’s outlook. We’re going to go ahead and actually cover many of the markets that we’ve covered in just the past few weeks, really to highlight how in a market environment as volatile as the one that we have seen, how these indicators adapt and get you ahead of the market moving forward. When we go ahead, we’re going to go with to start here with shares of Boeing. We’ve got Allstate. We talked about the energy companies here, so we’ve got Exxon, Plains All American. Lastly, the shoe company, Steve Madden, and then Tyson Foods. So, starting here with shares of Boeing, what we have right up against this daily price action, so each one of these candles represents a full and complete trading day, you’ll see that there is a black and a blue line there.

Boeing (BA)

Boeing-022820

Now, the black line that you see there, that is a regular, simple moving average, or what we actually refer to as the actual simple moving average, and that indicator is a very common technical indicator. It just looks back over the previously closed prices, takes the last 10 closes, adds them all together, divides by 10. And that’s a good measure of where market prices have been over a given period of time, but obviously, as traders, we need to know, “Hey, where are prices going to move going forward?” And so, what we want to compare that actual moving average to is actually this blue line that you see against the chart. And for this value to be calculated and generated each and every trading day, ahead of the market, what it’s doing is actually a very sophisticated type of analysis called Intermarket analysis, and specifically using the technology of artificial neural networks to do that.

What that means is, rather than just looking at past prices of shares of Boeing, vantage points, neural networks here are able to identify important market relationships that are known to drive influence, specifically the target market here at Boeing. And so, that can be things like big ETFs in the market. That can be individual stocks. That can be global currencies, futures markets, interest rates. And it’s able to use that information, understand those market relationships, and actually use that data to actually generate a future price. So you can think that of candles in the future that haven’t yet occurred yet, and actually use that information and build it into these indicators, turning what was a lagging indicator, into a forward-looking predictive tool.

So what we were highlighting here was actually this move up in shares of Boeing. You’ve gotten that crossover between that blue line and the black line signaling, go ahead and look to get long shares of Boeing. But what I want to do is highlight how things change, and how critically important this is to recognize how things are shifting over time. So you get a 6% rally higher in the market, but then come some of these other tools, and really the exact same approach when we look to how this market started to decline. So another indicator that we really need to understand is this indicator at the bottom. You see it goes from a green to a red configuration, and again that updates every single trading day, and you’re also provided a predicted high and a predicted low, again before each and every trading day, getting those values ahead of time so you can place limit orders, profit targets. And how this neural index, this bar at the bottom of the chart works is, again, looking at those Intermarket relationships but only forecasting ahead 48 hours at a time.

So you see that it goes red here and it’s signaling look, expect some market weakness over these subsequent 48-hour periods moving forward. You see that indicator has held bearish for quite a while here. Now lastly, again you have this predicted high and low. So these give you intraday levels to go ahead and look to take positions from, and we can see how this works is after this 6% rally, where you may belong, you start getting these clues that, look, go ahead and at least try to get cheaper prices here, if you still want to belong because we’re likely to see that market weakness over the next couple of trading days. And if we bring up those predicted high and low ranges, you really see exactly how this works, and if you’re still a buyer coming in down here. But then recognizing that, hey, this crossover came through is now saying, “Look to actually short the market. You don’t want to be shorting from up at these predicted highs and getting just a huge move lower here.” In just the past couple of days, really about six or seven trading days, in many of these markets I’ve seen the S&P just make a huge, huge move lower. So you see shares with Boeing off over 10% just in the past five trading days.

 

Allstate  (ALL)

ALL

Allstate, another one of these examples where we were focused on the upside, really nice rally to the upside, plenty of opportunities to be adding to your position along the way. But what happens midpoint of last week? And it’s not just here in Allstate. You see a lot of crossovers turning last week to the downside signaling, look, you don’t want to be long here. Look to take a short position, at the very least get out of your longs, but look to go ahead and possibly go ahead and get short, buy some put options. And again, we see here, that’s the end of that trade. You’ve got your neural index and crossovers moving to the downside. And again, utilizing those tools to say, “Look, don’t be participating on the bullish side of this market.”

Exxon (XOM)

We had these moves towards a predicted highs, which moves a little bit quickly here, and then we get this gap, but you’re recognizing days ahead of time that you need to go ahead and step aside from this market. And the trend is now down, and you just see how quickly things start to accelerate to the downside. Shares of Allstate down over 6.5%, just in the past five trading days. Now these were areas of the market that were showing strength, but over those past few weeks, we also highlighted areas of obvious strong weakness, and specifically those being in the energies. Now when the stock market is very weak, the energies can get tremendously weak as well. You’ll see crude oil starting to move much lower, nat gas, all these things, really starting to accelerate to the downside.  But these are things we had recognized all the way back at the beginning of the year saying, “Look, the energies are absolutely getting killed here.” If you want to go ahead and use the situation to go ahead, and while you’re getting long earlier in the year, take some short positions. And where should you be doing that? Well, do that in the energy space. We’ve seen multiple opportunities over the past several weeks to get short here, but look just last week, right? So if you’re recognizing and saying, “Okay, well I need to go ahead and look for a place to short the market, what sector is the weakest?” Well, energy here. And then use that short term guidance to say, “Okay, well where can I actually take out a position, and really limit my exposure, and risk to the market, but still really a benefit should the market start moving lower here?”

So you see shares of Exxon just getting killed here, energies markets, I mean crude oil, and these things, absolutely moving aggressively lower with those equity markets. And you see Exxon, just the past six days, down over 12%. Obviously, the entirety of the move here, down over 23%, 24% in just the past 33 trading days. If you’re trading options here, or just shorting the shares, several thousand dollar move to the downside.

 

 

XOM

 

Plains All American (PAA)

Plains All American, a little bit of a smaller company, and maybe a little bit bigger of a move, but again, recognizing that all through the energies there’s weakness. If you want to get in and play some of that weakness over the past couple of weeks, well, I think we even talked about this, that look, here’s some strength in the market. The neural index is saying, “Look over these 48-hour periods, expect a pop,” but you see that blue line holds below the black line. Neural index goes bearish once again, and lets you know, “Look, if you want to short the shares, where should you do it?” Well, up towards these predicted highs, right? Be very patient, wait on the market to move to these levels, and markets like this down 14%, 15% in just the past six trading days, right? So, really outpacing things like the S&P 500, overall again, down over 25% in just the past 34 trading days.

 

PAA-022820

 

Steve Madden (SHOO)

We talked about the shoe companies, so like Sketchers, Crocs, same thing. Areas of obvious weakness in the market, we long before last week when the equity started moving much lower. But if you’re looking for a place to go ahead and short the market, you already know those areas of weakness, and can therefore come in and say, “Okay well, where can I look to go ahead and look to take short positions?” And you see that thing is gapping, moving aggressively lower here, but multiple opportunities all along the way to get those positions on. Trail your stops even, and really benefit as markets decline even more here. So you see even yesterday getting this move up at about 35, hitting the predicted high, and then more weakness coming through the overall marketplace

So far again, we look at the course of this move’s entirety so far, down 18%, but these things are still moving, and we haven’t gotten those crossovers to the upside to signify that these trends are over yet, right?

SHOO-022820

 

Tyson (TSN)

Lastly here, Tyson Foods, another one of these areas where you look at, we call this big chicken, but you saw a lot of these producers really start to move much lower. And so when the S&P starts to sell off, these things are really, really susceptible to outpacing the move lower in the S&P. And so over the course of this, again, we say, “Okay well, over the past couple of weeks, you see some entries up here up at $80 or so.” Now the market off over 12% just in the past couple of weeks. Since the beginning of these moves started though, over 20% move to the downside.

 

tyson-022820

And you just see plenty of these areas and markets where there’s been some weakness. But also more importantly is, in those areas where you may have been playing strength, very clearly the market environment shifting and saying, “Get out of the way. Look to go short, and wait that portfolio to the bearish side of the market.” And then you see that big macro catalyst, as far as the S&P starting to move, and having a very big effect on all of these individual equities throughout the market. So just a really great example of how you can identify markets where you want to go ahead and focus your attention, those sectors of strength or weakness, and then use the vantage point tools day-to-day to manage those positions, and make the most out of those trading opportunities in where you’re putting that risk and exposure into the marketplace. So once again, this has been our Hot Stocks Outlook for February 28, 2020. Thank you all for watching. Best of luck, and bye for now.