Hot Stocks Outlook for the Week of
January 15th, 2021
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 Regions Financial(RF), East-West Bancorp(EWBC), ONSemiconductors(ON), HanesBrands(HBI) , Allstate (ALL) and Dick’s Sporting Goods (DKS)
This Week’s Hot Stocks Outlook
Hello again traders, and welcome back to the hot stocks outlook for January 15th, 2021. Hope you’re all having a great week out in the financial markets and as always, planning to cover in today’s outlook.
So let’s go ahead and we’ll start out here with shares of DICK’s Sporting Goods and really all these subsequent charts really work the exact same way. What we have here with DICK’s Sporting Goods is daily price action. So each one of those candles represents a full and complete trading day. There’s really three main indicators that go into the overall forecast provided from Vantage Point here. With this black line and the blue line that you see right up against the price data, that is what’s referred to as the predicted moving average. That’s actually a forward-looking tool that utilizes predictive data in the future to actually generate that value in calculation of the overall trend.
At the very bottom of the chart, you’ll see you have a bar that goes from green to red and back to green, that is updated every single trading day. So after the most recent trading day, you’ll get a green or a red bar, and that is actually a 48-hour indicator. So it’s tuned much shorter term, looking for short-term strength or weakness in the marketplace. To the very right of the chart, you see that there is a predicted high and a predicted low. That is actually again, utilizing that technology for intraday trading the next trading day. So where is the overall range as far as where this market is expected to trade? So what we have here… If we go back to, it looks like December 22nd, we see we have this blue line crossing above the black line, and this is very important because what that black line is, is actually a simple moving average.
It’s a very common technical indicator, and it does a good job at smoothing out the overall price action. But the problem with simple moving averages is that they really just drag data from the past and smooth it out and bring it forward. So when you have a 10-day simple moving average, it just takes the last 10 close prices, adds them all together and divides by 10. So you’re really getting a good measure of where market prices have already been, but you have the danger of things getting dragged around by that most recent close price. So what we want to do is actually compare that black value or that measure of where market prices have been, to this blue line that you see against the chart. For that number to be generated each and every trading day, Vantage Point is performing what’s called intermarket analysis, and it’s utilizing the technology of artificial neural networks to do that.
What that means is specifically for DICK’s Sporting Goods, the software has been able to identify markets that have very important market relationships. Now, it’s important to understand that could be leading or lagging relationships, that could be inverse correlations or positive correlations. What it’s going to do is it’s going to look at things like the broader market, like the S&P 500, the NASDAQ. It’s going to look at different ETF groups. It’s also going to look at global currencies, global commodities and future’s markets, as well as individual stocks. It summarizes all of that information and actually uses it to generate future price predictions. You can think of that as something that has not yet occurred. A true, genuine prediction in the future, and it uses that predictive data and actually builds it into the value of these moving averages.
So rather than having a tool that just looks back at what’s already occurred in the market and get dragged around, this is a tool that actually looks ahead and forecast where things are going moving forward. So whenever that blue line crosses above the black line, you can think of it as the overall trend is up, or that average prices in the future are going to move higher than where they currently are. Now, at the very bottom of the chart, you’ll see that red or green bar, and this is very similar utilizing that intermarket analysis approach and using predictive data, but this is tuned really to look ahead just 48 hours. So it’s more of a short-term strength or weakness, not the overall trend, as far as the predicted moving average, as far as predicted prices overall moving forward, but just very short-term strength or weakness in the marketplace. You’ll see here, and on the subsequent charts, we have these periods where that neural index goes bearish.
That doesn’t mean that the market’s going to reverse and start going lower, but it does mean that you’re likely to see some pricing below the average over the next couple of trading days, but as long as that blue line remains above the black line, the overall trend is bullish. You see that this overall does a very good job. When the market is in an uptrend, you have that neural index bullish. When we get that decline and retracement in the market, you get that forward, really forecast of that. So you’re not caught off guard if prices start to decline a little bit, but once that neural index gets bullish again, you see that overall trend really taking off. So shares of DICK’S Sporting Goods had a pretty nice rally so far since that forecast move to the upside, but it’s about a 22% rally. Also, what you’re getting though is the ability to every single day, have that predicted high and low forecast, which is changing each and every day.
This is actually this red and the black line, is showing exactly what the forecast was on that actual trading day. So you can see that the day before or as this market goes into an uptrend, the software’s telling you, “Look for prices down here. If you want to start a campaign of buying in this market, look to be a buyer at or near these predicted lows, and of course, to the bullish side as that overall trend is up.” So you see, before that breakout comes in, you’re getting about three really nice entries at the lower part of the overall range, and that overall trend takes off and things move higher. Now, same approach, we can take this over to Allstate. I wanted to bring this market in, really just to highlight what’s going on generally throughout the market. So we have a really great feature here called the Intelliscan, And what it allows you to do is identify which markets are going into fresh up trends or fresh down trends.
You can tune the Intelliscan to look for these fresh crossovers between that blue and the black line. When you do this on a large swath of markets, you start to see the overall really nature of the market. So at the beginning of November, that’s where we saw a ton of markets going to uptrend. Many of them have not reversed. You haven’t gotten down trends coming in. You’ve had a market just keep moving higher and higher.
Here’s a good example of what’s going on with Allstate. At the beginning of November, you get that crossover with the blue line and the black line, but ever since the markets have remained very bullish and you want to understand… We looked at Goldman Sachs, United Therapeutics, these stocks over the past few weeks, those markets remaining in uptrends, and what that identifies is an area where you can look towards the Vantage Point predicted lows in this case, to be a buyer in the market.
So you see that as those crossovers come through, you get these multiple opportunities to get really nice prices at or near that predicted low and within pretty much 48 hours or so that market is moving higher and continuing that overall uptrend. You often see days like this, where you come a little bit out of the range, but look at that predicted high and low range, slant lower and say, “Okay, well…” What it’s doing is it’s taking in that inner market information, understanding what’s been going on, and again, all of those inter markets that are affecting Allstate, and then it adapts. So you have this adaptive tool that isn’t just saying, “Okay, well the trend’s going on uptrend back here,” every single day, it’s updating and saying, “Okay, well, how’s that predicted range changing? So that you can make the most of that trading opportunity and manage the opportunity in a way that allows you to pull the most money out of that situation.”
So we can look at overall, we’ve got a 20% rally here. Obviously, Allstate, not the most exciting stock that you’re going to find in the world, but 20% rally in just the past 47 trading days and some very easy trading, as far as buying at or near that predicted low, pretty quickly seeing the market move higher and resume the uptrend.
Here’s Hanesbrands, and a good example. We have this long period of sideways price action, and over periods like that, where you never really know how soon an uptrend is really going to break out, but you want that ability to get really the best price possible. As long as that blue line is remaining above the black line, you want to maintain that position to make sure you don’t miss out on that market starting to really accelerate higher. So again, we can look at these predicted highs and lows… Again, just really back to that point of having an adaptive tool that looks at what’s going on, not only in this market, but other related markets and understands how that is going to affect the future outlook of the market that you’re trying to trade.
Again, you see these situations where the market is pretty much running sideways, but look how many times you get nice entries at the low end. You come up and hit these previous predicted highs. You’re hitting predicted highs here, getting a movement lower, and the software just doing excellent job of letting you know, regardless of timeframe. If you’re a short-term trader, well, where do you want to get in? What price targets do you want to look for, for that short-term timeframe? But one of the best things you can do is, again, as long as that trend is continuing, you want to understand that it makes sense to remain long. So you can always take some profit along the way, keep buying down at predicted lows, but make sure you’re not missing the best part of that 11% rally. Just in the past 17 trading days here in Hanesbrands, these things have moved higher. Again, just 500 shares here of a very cheap stock has you have about $770, obviously easy to buy a few thousand shares there and make money as the market moves into that uptrend.
On semiconductors, this was a market we looked at last week, I believe. To that point, we say, “Okay, well, last week was about five trading days ago. What have the forecast look like in this market moving forward?” If you wanted to be a trader here, well, the neural index has remained bullish and we can look at those predicted highs and lows. Another great example here, we do this every week. We keep bringing in markets that we’ve brought in in the past and just say, “Okay, well, if you’re still looking to trade, how have the tools updated and adjusted?” Use that adaptive approach to make sure you’re managing that situation well. You see here, you get a gap down right to that predicted low, and then the uptrend continues. That’s a pretty decent move there. At least a couple of dollars as far as an increase in the share price over a very short period of time.
This is another thing that you can do with the Intelliscan, is you can set the Intelliscan to identify markets that are already in uptrends, but potentially things like where’s there some weakness in that uptrend, so I can look for an opportunity to go ahead and get long. That’s going to help you. Again, regardless of your trading style or methodology, find the best opportunities where you can really pinpoint exactly the type of trading situation you’d like to get into. Here’s East West Bankcorp and Region Financials, so a couple of financial stocks.
Here in East West Bankcorp, where we see at the beginning of December, getting that crossover to the upside. A couple of these instances where the neural index goes bearish, and you see you do get some weakness of the price action. I always like to look at it and saying, “Okay, well, if that blue line is our average prices moving forward, when that neural index goes bearish, expect some pricing below the average to take place.”
That’s generally what you tend to see. It makes sense that you would trade above and below an average overall, but really just combining that strength of the overall trend and overall forecast with short-term weakness really lets you know, okay, what should you be doing in that environment? Again, we can see if you’ve got those predicted highs and lows over those periods especially, you understand coming on some of that weakness. If you’re getting it at the beginning of the trend, you see very clearly here some excellent entries about four entries that are five days there, before this market really goes into that uptrend. As long as that blue line, the overall trends is looked at, the market is still up. You’re certainly going to get volatility in markets as they bounce up and down, but don’t lose track of the bigger picture here.
You’ve got a 36% rally in just the past 29 trading days, you get about 500 shares there as you have about $8,000. Lastly, here Regions Financials, a little bit more recent as far as the opportunity, but again, blue line over black line. You get this neural index just a couple of days out of about 15 trading days or so where it’s bearish, but overall, a very bullish forecast. You see as that neural index goes bullish once again, that’s where we really start to see things breakout and accelerate to the upside. We can see okay, well from that predicted low perspective, really right… About three, four opportunities here, once that volatility really picks up and you’re later on in the trend, you still see the software doing an excellent job of saying, “Look down towards these levels, if you want to be a buyer. If you want to participate in more of that uptrend.” But about a 15% rally and just the past 13 trading days. Again, a very small position there. You have only 500 shares as you have about $1,200 in profit.
So once again, this has been our hot stocks outlook for January 15th, 2021. Thank you all for watching. Best of luck to the traders out there in the markets. Things have been looking very, very bullish and it’s opened up a lot of tremendous opportunities to get a long, but of course you want to minimize that risk and have a tool that’s really going to adapt for and keep you on the right side of things. So have a great rest of the week. Thanks again. Bye for now.