Hot Stocks Outlook for the Week of
July 24th, 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 Waters Corp (WAT) , BJ’s Wholesale (BJ), Opko Health(OPK), Couer D’Alene(CDE) and SilverCorp Metals (SVM)
This Week’s Hot Stocks Outlook
Hello again, traders, and welcome back to the Hot Stocks Outlook for July 24th, 2020. Hope you all are having an excellent week out in the financial markets. And as always, plenty to cover in this week’s Hot Stocks Outlook. So starting out, we’re going to start out with shares of Waters Corporation. A lot going on in the metal and mining area. So we’ve got a couple of silver mining stocks to take a look at, BJ’s Wholesale, which we looked at actually a couple of weeks, and actually OPCO, which we looked at last week. I just want to update the shorter term forecast and how some of these tools work. But starting here with Waters and really good example of how anyone would look for new opportunities within the software. What we’re able to do is actually scan for some of these new opportunities and look for these indicators creating some buy or sell signals. But here in Waters, what we have is daily price action.
So each one of these candles represents a full and complete trading day. And right up against that price data there, you see that there is a black line and also a blue line. Now, very important to understand how all of these indicators work together and really the timeframes and what they’re forecasting here. So what we have with this black line on the chart is, that is actually a regular simple moving average. So a very common technical indicator. And what that does is, it looks at really past prices and really smooths out that data. So it acts as a really good measure of where market prices have been over a given period of time. But obviously as traders, we want to understand, where are prices going moving forward? So what we want to do is actually compare that black line or that simple moving average to this blue value that’s generated and updated each and every trading day.
And for this value to be generated, Vantagepoint is utilizing the technology of artificial neural networks to perform what’s called intermarket analysis. So the difference here is, rather than having an indicator that just looks at past prices and updates that black line based on really what the most recent close has been, what vantage point is able to do is look at important market relationships specific to the market in question. So in this case, Waters, vantage point is looking at how other markets are driving and influencing and affecting the future price of Waters here. Now, that can be individual stocks and individual equities, that can be ETFs that model the sector or group that the stock is in. This can be futures and commodity markets, global indices, like the S&P and the Russell and the DAX. This can be global currencies, global interest rates.
And what it’s able to do is look at those market relationships that are significantly driving Waters and actually generate future price predictions. So you can think of that as data to the right hand side of the chart that hasn’t yet occurred. Now, what that data is used to do is it’s actually built into the value of these indicators. Turning what was a lagging indicator that really only tells you where the market price has been and what’s happened most recently, to a forward looking predictive tool. So whenever you see that blue line or that blue value cross above the black value, it’s suggesting that average prices are going to start moving higher. So very important to identify trend reversals and shifts in the marketplace. Now, in addition to that value being really affected heavily by those intermarket relationships, you also see this indicator at the bottom of the chart.
You see it can go from green to red, back to green, and this also gets updated each and every trading day at the right hand side of the chart. And what it’s doing is it’s an extremely accurate indicator, but it’s very short-term. It’s actually only looking ahead 48 hours at a time. So you can think of it as two trading days at a time and looking for very short-term strength or weakness in the marketplace. Now, in addition to that, you also have this predicted high and low range. So you have not only a 48 hour indicator of strength or weakness, but also an intraday predicted high and predicted low level to help you make decisions on, well, where should I add to my position? Where should I be buying? Where should I be selling? And this is very effective and then really rounds out the entirety of the forecast.
So you understand that the overall trend is up, neural index suggests some strength over the next 48 hours. But then moving forward, you get that guidance of the predicted highs and lows. And they really let you know that, okay, if you’re coming in intraday, you can have a limit order waiting down at these levels. And actually these days where you gap down a little bit lower and open below that level. In that case, you’d actually be filled at the open and then see prices start to rise. But you’ll see how effective these levels are, where you’re constantly bouncing off the predicted highs, bouncing off the predicted lows. But the overall trend here still very much to the upside and that blue line is still very much above the black line. So just the overall trend is still solid here. So we look over this opportunity, we’ve gotten a nice move, but really just a good example of how these indicators work together to identify and find new trading opportunities, here this market up about 22%, just in the past 13 trading days.
So again, 500 shares has got up about 20 grand, a little bit more expensive stock, but again 1000 shares there has you up about four grand.
Now, moving forward to Couer D’Alene Mines, and this is a good example of how these Intermarket relationships are very important to identifying where the great opportunities are in the market. So we’ve seen dollar weakness, dollar weakness translates to gold, precious metal, overall commodity strength. That’s going to affect the prices of silver and mining companies. So here we have [inaudible 00:05:18], and again, think of that relationship of, you’ve got things like the gold futures market, you’ve got silver, you’ve got things like the dollar index, you’ve got ETFs, those model mining companies and such.
And what it’s doing is looking at those relationships and adjusting these indicators based on those intermarket relationships. And we can draw very important information based on what’s going on in the gold market of the dollar index and how it affects specifically these mining shares. So when you go ahead and see the exact same sort of forecast here, but this coming through, not just this week recently where we’ve seen things really start to rise, especially in the silver market, but all the way back at the end of June, early July. You have this crossover to the upside and look at all this strength from the neural index. You literally only have one day out of what’s probably over 20 days here where you’ve gotten that 48 hours consistently forecasted to move higher and clearly the trend very much to the upside. But really where this, entirety, the forecast comes in is looking at those predicted highs and lows.
So what we’re doing here when we bring up this red and black line is, those are the actual predictions that were forecasted before the actual trading day. So what you’re seeing here is how accurate each one of these trading day predictions are, really again, before that day happens. So again, today we will have an actual candle fill in this space and see again with a new forecast, new neural index, new predicted high and low. And where this really helps you is to manage an opportunity. So you got a very cheap stock here, especially when you’re trading stocks like that, you want to be getting good intraday prices so you don’t have to run a huge stock loss or take a lot of risks to participate in that opportunity. And where for shorter term traders this can be very confusing is, you see days like this where you really want to be a buyer down at that predicted low, because literally over the next couple of days you’re accelerating higher. But you really don’t have any chance to be buying down at the low and expecting it to move that day.
This is where this can be very effective. Again, you see this weakness coming in, closing a little bit lower, and immediately that overall trend taking hold. And that’s where the 48 hour forecast here really help you out and say, okay, well, strength of the next 48 hours, you’ve gotten filled, look for that strength to continue and guide you as those years move forward.
Silvercorp Metals here, very similar situation, ended June seeing these crossovers to the upside. You see these little blips where the neural index will go down to a red, but again, you got to remember, that’s just short-term strength or weakness. A way that I like to utilize that indicator is just to understand that if you have an accurate indicator of average prices moving forward, when that neural index goes bearish, expect the market to hang out below that average.
So you’re going to get prices above and below an average. But when that weakness comes in, you’re likely to see things push a little bit below that predicted moving average. But as long as that blue line remains above the black line, and especially when you have that distance and separation, the overall trend’s still very much to the upside. And again, we can look at those predicted highs and lows and understand that if we’re coming in over a period like this, very clearly, there’s only a few things to do, right? The direction is to the upside, you’ve got these predicted lows acting as good intraday levels to potentially take a position. And you see how over the course this moves, getting in at a really good spot on these overall ranges as the market continues higher. So a really great opportunity in these metal and mining companies.
Also, if you trade gold or silver as futures markets, it’s the same thing, you use these forecasts in exactly the same way. Here we have a market of 54% in just the past 21 trading days. So again, 500 shares there, which is a tiny, tiny position, has you up over $1,300, easily could buy a few thousand shares in a situation like that.
And so I want to revisit a couple of these opportunities over the past couple of weeks. Now, BJ Wholesale, we looked at last week. And so that means there’s been about five candles since that forecast had come through. And again, we can see again how these tools work to let you know, okay, well, if the overall trend direction is still very much to the upside, if you want to trade BJ’s, where do you want to be looking to? Take a position? And you see recently really great entry over that longer term range there, and that overall trend breaking higher and creating a good trading opportunity.
Additionally, these days where you hit the predicted high, seeing some short term weakness, at least come in from those levels, from those predicted high levels being achieved on an intraday basis. But clearly, you only want to go along taking profits on long positions here. So we’ve seen shares go a little bit higher here. Overall, this move up over 20%, just the past 24 trading days. Again, a very nice return in a 500 share position.
And lastly, OPKO. So this was two weeks ago we looked at OPCO. Really, I believe the ninth or somewhere back here is where we initially brought this forecast through. And again, remembering that, okay, well, weakness from the neural index has weakness over the subsequent next 48 hour trading day. But the overall trend still very much to the upside. Neural index, again, more recently saying bullishness over these 48 hour windows. And you’re seeing that stock really advance.
This is why this is so important, is because you really want to understand when to hold a position. That can make enormous difference on how well you’re going to do trade after trade, after trade. And if the overall trend is still up in the forecast, still looking good here, you want to remain in that position, not be taking profits and getting completely out of the way. So we see many entries here, early part of the move here. But more recently, even as that volatility increases, some really good entries and some good forecast to let you know, okay, well, if you want to come in and find a good intraday level, where do you want to go ahead and do that? So shares here of OPKO, we have overall, over the past, what I’d say is about 30 trading days or so, let’s see here, 31 trading days markets more than doubled, 115%.
Again, easily, a few thousand shares you can buy here making thousands of dollars to the upside on a stock that, again, it was trading down at 240. You want to have that good guidance so that you can deal with that volatility when things are moving around a lot on a small price stock on a percentage basis. But understand that, look, this trend is very clearly to the upside. You see the neural index outside of a couple areas, identifying that weakness. And letting you know, okay, things may run sideways, but that trend still very much to the upside. And you certainly want to be around for this move from 390 up to about $6 per share. So once again, this has been our Hot Stocks Outlook for July 24th. Thank you all for watching, best of luck out there and bye for now.