Hot Stocks Outlook for the Week of
January 22nd, 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 Cameco(CCJ), Gilead Sciences(GILD), Horizon Pharma(HZNP), United Therapeutics(UTHR), Dick’s Sporting Goods (DKS) and Ford (F)
This Week’s Hot Stocks Outlook
Hello again, traders and welcome back to the Hot Stocks Outlook for January 22nd, 2021. Hope you’re all having an excellent week out there in the financial markets and as always, plenty of opportunities to cover in today’s outlook. So, we’ll start out with shares of Horizon Pharma. We’ve got Gilead, also United Therapeutics, which we’ve looked at over the past few weeks, in addition to Cameco and Dick’s Sporting Goods, which we’ve covered over the past couple of months here, and also Ford Motor Company.
So, let’s go ahead and start out with really this grouping of biotech stocks and what we have here with Horizon Pharma really works regardless of what markets you’re trading. So, whether it’s a stock or a futures market, really all of this works the exact same way. And what you see as far as the price data here is daily bars and candles. So, each one of those candles represents a complete trading day and you’ll notice that there is a black line and a blue line right up against that price data.
Now the black line that you see there, that is a simple moving average. It’s a very common technical indicator, and what it does is it looks back over the previous price action, ads the last 10 close prices together, divides by that number, and it acts as a good measure of where market prices have been. It really smooths out that price data. But obviously as traders, we need to understand where are the markets moving going forward so that we can be ahead of any market move?
So, what we’re able to do is actually compare that black value, that measure of where things have been, to this blue value generated from the vantage point technology. And so it’s important to understand what’s going on here is rather than just plotting past price action and smoothing that out, Vantage Point is doing what’s called intermarket analysis and specifically using that technology of artificial neural networks.
Now, what that means as far as intermarket analysis is it understands how other markets drive and influence this specific target market. Now, that can be things like individual stocks. That can be ETF groups like biotech ETFs. That can be global currencies and global interest rates as well as futures and commodity markets. And what it’s able to do is understand those relationships, whether they be positive, inverse correlations, leading or lagging relationships, and it takes all of that data and actually uses it to generate future price predictions.
So, you can think of that as bars to the right of the chart that haven’t yet occurred. And rather than take that past price data and use it to construct these moving averages, it’s actually taking those future predictions, allowing the indicator to cut out the lag time so you can really identify when trend reversals begin in the market.
So, whenever that blue line crosses above the black line, it’s suggesting average prices are going to start moving higher and therefore you can take your trading strategy or approach and act accordingly. Now, in addition to that predicted moving average, you’ll see at the bottom of the chart here, we also have a bar that changes and every single trading day at the close of the day, what will happen is you’ll get an update to this prediction. And what it’s doing is actually it’s a 48 hour indicator. Again, driven via that neural network technology and it’s looking for short-term strength or weakness over the subsequent two next trading days. And you’ll notice that as the blue line crosses above the black line, the overall trend gets started. But notice that that neural index goes bearish. And what you’ll often see is the market trading below that prediction of average prices over the next 48 hours. But the overall trend is still very much bullish.
Now to really round out the entirety of the forecast, you look at the very right-hand side of the chart, and you also have a predicted high and a predicted low, a shadow candle here. And that’s provided every single trading day before the market opens. And what we can do is actually look back and see how accurate each one of those predictions were when compared against the actual market data. And you’ll see here that you get a very good roadmap of where this market is headed moving forward. But you really want to use that adaptive technology to help you manage that position along the way. So, you’ll see here, right as that crossover comes through and says, “This market’s in an uptrend,” you get multiple levels here where you can go ahead and add into that position.
You see it, a nice round $71 per share before that trend really gets started. And even with that volatility as the market breaks through those predicted highs, the software does a good job of adjusting and letting you know, okay, well, tomorrow’s a new trading day. Let’s come in and understand the overall volatility is we’re as far as those predicted highs and lows and it allows you to, depending on your trading strategy, add to that position along the way. So, you can take those profits by catching that move higher, and then use that to trade this position as long as that blue line remains above the black line, the overall trend is still to the upside.
So here in Horizon, a more recent opportunity here. But just in the last 13 trading days, these shares are up almost 13%, about a 500 share position there has you up about $4,600 in profit.
Now here’s Gilead Sciences, and you’ll notice when you utilize tools like the Intelliscan here within Vantage Point, a lot of similar markets start to move in tandem and share very strong correlations and you can identify when one of those big shifts is coming into the marketplace. Well, here in Gilliad, we see at about the same time period that blue line crossing above the black line and the overall forecast extremely accurate. Once that neural index goes bearish, you get some weakness over the next couple of trading days, but very clearly that predicted moving average above the actual moving average. Neural index gets bullish once again and then you see that strength and continuation of trend over the next couple of trading days.
We can look at these predicted high and low levels, and you see that once this trend gets started, we don’t quite get down to these predicted lows, but you want, again, a tool that adapts to what’s going on in the market, that takes in all of this information in addition to those intermarket relationships and then projects forward on what you can expect going forward in the market.
So overall, we’ve gotten a really nice move to the upside. Let’s see, overall, we’ve got about a 16% rally. So similar rally there, but again, some more recent entries here where this pullback in consolidation happens before that continuation of the uptrend.
Now United Therapeutics, and also actually Camico and Dick’s Sporting Goods, we’ve highlighted these opportunities over the past few weeks. And so United, you can see going back all the way to December getting this crossover to the upside. Now, when those other biotech stocks started moving higher, really at the beginning of January, you see this thing really took off as well. But you want those tools that are going to help you and say, okay, well, if I’m going to stick around in this market, where do I want to be looking to take positions to participate in the rest of that up move?
So, from the early goings here, some really excellent entries early on in the marketplace, but this trend has continued. And had you identified those crossovers all the way back in December, this market’s up about 27% in the past 28 trading days. About 500 shares, about an $18,000 position here.
Now, stocks generally have been doing very well, and we saw Ford and also GM and some of the automotive companies start to turn up here. You see January 7th getting that crossover to the upside. And that go ahead that says, all right, well, over the next 48 hours, you’ve got strength here. Look towards these next days’ predicted lows to stake out a position to get involved in that uptrend. And you see a couple of excellent entries here. Pretty much if you get in this day, you want to understand that, look, we may trade a little bit lower, you see that predicted high and low slanting down a little bit,. but over the next 48 hours, you’re likely to get that resumption of trend. You run sideways here with that neural index going bearish.
But very clearly we can see that blue line well above the black line. So, especially when there’s a lot of separation here between that prediction of the moving average and the actual moving average, suggests you’ve got a very strong trending situation there. And overall, we can see that this position now is up about 21% in just eight trading days. Again, that’s a very cheap stock where you could trade thousands of shares making about $1,000 for every 500 shares traded.
Now, lastly here, we’ve got a couple of opportunities and I really just wanted to highlight this adaptive forecast so that you understand that when you’re in a position, kind of like United Therapeutics, if the trend is still up, manage that position with the help of that neural index and predicted highs and lows over those short-term periods. But you also want to understand when things shift in the marketplace.
So here in Cameco, we got this crossover all the way back in November, and we saw tons of stocks move higher in November, especially oil and energy, basic material stocks, and things like this is really where there’s some tremendous opportunity. We can see over the course of this move, this market went up about 56%. But what we’ve seen recently is a lot of these basic material stocks start to turn lower and here in Camico, we can see very clearly that you get this crossover to the downside, some weakness forecasted from the neural index, even back here, saying, “Expect some weaker prices here.”
But once we get to this point, it’s very clear you actually want to go ahead and get out of those long positions, any of them that are left, potentially even go ahead and reverse that position and look to short the market.
So after that about 50% rally to the upside, just in the past four trading days, shares are off another nine and a half percent. So you don’t want to be staying long in that market. When you’ve got that clear forecast that says, look, the uptrend is over. Now look for another opportunity or potentially, like I mentioned, reverse disposition, sell shares definitely, is what the forecasts are telling you here.
Lastly here, Dick’s Sporting Goods. This is another opportunity we looked at more recently, but we can see further back in the chart where earlier in December, this was really not a place you wanted to be. And if you were coming in during this period, you wanted to go ahead and actually short the market, take some profit along the way. You see plenty of these opportunities where those predicted high and low levels are doing a good job of informing you where to go ahead and get involved and take profit as each subsequent day trades forward.
But then we get to this point and that trend shifts to the upside and you understand that, okay, well now these are the opportunities where you should actually be buying the market and benefit as this trend continues. And we can see as the market and volatility have picked up, you get that predicted high-end range. Again, adapting to what’s going on so that you can be prepared for the next couple of days trading here.
But overall, this move still in an uptrend. We’ve gotten a really nice rally here, shares of about 20 plus percent from these predicted lows where we’ve taken a position, a little over 20% in the past 15 trading days there in Dick’s Sporting Goods. So once again, it’s all about having a tool that’s going to help you, not only identify trading opportunities, and that’s really where the Intelliscan can help identify immediately when these predicted moving averages are generating signals so that you can be prepared for trend reversals, but also that adaptive technology, that neural index and predicted highs and lows, that once you’re in a position, you can understand how to manage it and add to your position effectively to really make the most of each one of your trading opportunities that you get involved in.