Hot Stocks Outlook for the Week of
July 12th, 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 Western Digital(WDC), Philips 66(PSX), Motorola(MSI), Royal Gold(RGLD), and Boston Scientific(BSX).
This Week’s Hot Stocks Outlook
Good afternoon traders. Welcome back to the Hot Stocks Outlook for July 12th, 2019. I hope you’re having an excellent week in the financial markets.
Starting with Western Digital, we’ll look at the daily bars and candles. Each one of these candles represents a full and complete trading day, along with a few indicators against the chart. This is a good example to understand how these indicators work together.
If we look right against that price action, you see that there is a black line and a blue line. The black line on the chart, that is a regular, or what we refer to as, the actual simple moving average. It’s very easy to calculate a simple moving average. Simply add the last 10 days closing prices and add them all together, then divide by 10. That line plots where the market has really already been. As a trader, we need to understand where prices are heading next. To do this, compare the black value to the blue line on the chart.
For that value to be generated, VantagePoint is looking at what’s called intermarket relationships. This isn’t only from what’s going on with Western Digital, but other with other tech companies. Some company may include Seagate or some other hard drive manufacturers. There are ETF groups, futures markets, the dollar index, currencies, interest rates, and it’s using that intermarket information to generate future prices that haven’t yet occurred. This is built into these indicators, turning them into what used to be a lagging indicator, only looking at past prices, and now is a forward looking predictive indicator.
We might ask, “Where are prices likely to start moving next?” Once that blue line crosses above the black line, it suggests, look, the trend is now up. We can expect average prices to start moving to the upside.
In addition to predicted moving averages, there’s an indicator at the very bottom of the chart, the Predicted Neural Index. This is another indicator derived via intermarket relationships by the artificial intelligence within the software, but it works differently. It’s attempting to look forward in 48 hour periods, determining very short term strength or weakness.
I like to look at this is that if we have a very accurate prediction of where the moving average is, and where average prices are expected to go next when this 48 hour indicator gets bearish or moves to the other side. Then, you can expect price action on the negative side, in this case, of that moving average. But, overall the trend is still to the upside, there’s a huge amount of spread between the prediction of the moving average and the actual moving average.
Rounding out the forecast, not with just the 48 hour indicator, but also intraday levels, you’re provided a predicted high and low, allowing you to make decision. This can be used to set your entries or limit orders and take positions in the market; but also shorter term profit targets for those upside targets that you may want to hit. But, understand that, in this case, the overall trend is up. You want to remain in this position as long as that blue line or trend remains to the upside, though you can take some profits along the way. There’s a huge move here in the past 13 trading days. Western Digital shares are up over 38%, or a $15 per share.
Using the same logic, it doesn’t really matter what market you look at. Now, let’s look at Phillips 66 in the energy space.
At the beginning of June the crossover is to the upside, with the blue line remaining above the black line. What you’ll notice is there are a couple of times where the neural index dips down to its red configuration, meaning we can expect those prices below the moving average, but be on the lower side of the average over the next 48 hour period. The neural index hanging in a bullish trajectory with this market moving up each and every day.
Depending on your timeframe, you can use these different levels to determine where to get involved, without getting shaken out of the trade. There may be some short term weakness in the market at these points, but it’s usually a great time to add to your position without getting out of the way as the trend continues to the upside. There’s about a 17% move from this point, with a couple areas along the way, three or four entries along the way. It’s over a 17% move over the past month, making Phillips 66 a nice opportunity. It’s a little over a 15% move in just over those 21 trading days.
Let’s look at more of the tech area with Motorola Solutions.
In June, we saw a lot of markets turn to the upside with the predicted moving averages, meaning we could go long. If the trend continues, you want to stick with that trade. Look at the 48-hours periods, where there are retracements in the market. You may look to trade below the predicted moving average of the blue line, but getting guidance from your predicted highs and lows along the way.
There’s multiple entries to add to this position in this overall uptrend. There’s entry after entry, with the market going sideways on pullbacks and retracements. These are great levels to add to the market, with the trend still to the upside here. The blue line is still above the black line. There’s a nice move over the past couple of months, about an 18% move to the upside in Motorola Solutions.
The gold market has done extremely well, as well as, the commodity for gold. A lot of gold and mining stocks, like Newmont Mining, is doing really well.
Here we’re looking at Royal Gold. There’s a crossover to the upside. In the periods where the trend is up, there still may be some sideways action. When the neural index is bearish, you’re not in a very strong uptrend in those time periods. As things straighten out there’s another retracement, allowing you to determine where to be more aggressive with trades.
Shoot for those upside price targets using the predicted levels from the VantagePoint software, establishing a position early on in the trade. There’s around 13 entries to the upside, so even on when there’s movement past the predicted low, have a limit order waiting. Get filled at the open and immediately move up, because that overall trend direction is up.
You’re likely to trade around the predicted moving averages. It’s a predicted average. You can trade above and below it, but as long as the trend is up, you want to stick with that trade, making sure you make the most of the opportunities. Don’t get involved in these opportunities at the start of the trade, but get out of them as that trend is still moving higher, which you see is almost 30% so far. It’s the same thing again for things like Newmont Mining, just the gold market in general, moving from $1,300 up to over $1,400 an ounce, but 39 trading days, 28% move to the upside there.
Lastly, we’re looking at Boston Scientific. A lot of these markets have been moving to the upside since around June. There’s been a nice bullish trend starting to emerge in the marketplace. The areas where neural index are bearish there is some sideways movement with a bit of retracement. The blue line never crosses below the black line. The trend never reverses. It’s just been two months of buying opportunities.
What’s great about the predicted levels is they adjust and adapt. Every day we get more information, as more price data becomes known from the target market and the intermarkets affecting it, including – ETFs, stock futures, the dollar index, and interest rates. All the information from these other markets are included in the forecasting, telling your in the intraday levels what the range it likely to be, along with if the average prices are still moving higher. As with all these scenarios, as long as that blue line is above the black one, the trend is up.
Regardless of what your trading strategy is, whether trading in the options market, buying calls, or you’re a short term day trader, match the time frame with what the tools are telling you about the market. You’ll get much better entries into these trades, managing the opportunity as it moves forward much more effectively. This market is up over 15% in just the past 37 trading days, almost $6 per share. There’s great opportunities here, spread throughout the greater markets. The is S&P moving higher, all the sectors trending to the upside, opening up opportunities for traders.
This has been our Hot Stocks Outlook for July 12th, 2019. Thank you all for watching. Best of luck and bye for now.