Hot Stocks Outlook for the Week of

July 3rd, 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 Amazon (AMZN) Electronic Arts (EA), ResMed (RMD), Cracker Barrel (CBRL)and ETSY (ETSY)

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This Week’s Hot Stocks Outlook

Hello again traders, and welcome back to the Hot Stocks Outlook for July 3rd, 2020. Hope you all are having a great week out in the financial markets and getting ready for the July 4th holiday. We have a lot of great opportunities to take a look at. Some very popular companies here. We’ve got Amazon.com, Electronic Arts, Etsy, ResMed, and lastly, Cracker Barrel here.

AMAZON

AMAZON

So we’re going to start out with shares of Amazon, and what we have here is daily price action. So each one of these candles represents a full and complete trading day. We can see going back really to the beginning of June, and what we have right up against that price date, you’ll see that there is a black line and also a blue line. Now, very important to understand that that black line that you see there, that is a regular simple moving average, very common technical indicator.

And what that does is it looks back over the previous 10 candles, adds all those values together, divides by 10, and it does a good job to smooth out that data, really letting us know where market prices have been over a given period of time, but obviously, as traders, we need to understand, well, where are prices going moving forward so that we can be ahead of the move? And so what we want to compare that black value, that simple moving average value to, is this blue line, and for this value to be generated each and every trading day, VantagePoint is performing what’s called Intermarket analysis, and specifically utilizing the technology of artificial neural networks to do that. So what that means is rather than just looking at the share price of amazon.com, VantagePoint is able to determine how other individual stocks, other ETF groups, futures and commodity markets, global currencies, interest rates, how all of these global markets share very important relationships with the target marketing question, in this case, Amazon.

And what it’s able to do is actually use that inner market data to actually generate predictions. So market data that hasn’t yet occurred yet, a true prediction, and actually build it into constructing the value of what was a regular moving average into a forward-looking predictive moving average here. So whenever we have that blue line, in this case, cross above the black line, it’s suggesting average prices are going to start moving higher. That black line will start to move towards the blue line, if you want to think of it that way. Now in addition to that really trend indicator that you have there of where overall prices are moving, there’s a couple of other indicators here that round out the entirety of the forecast. If you look at the bottom of the chart, you’ll see you have this bar that goes from green to red back to green, and this again is utilizing that technology of artificial neural networks, but it’s tuned to be very short term.

So it’s looking ahead two trading days at a time. So whenever the indicator here is in a green configuration, it’s suggesting average prices should move up over the next 48 hours and then you get a new forecast for that prediction, and this is an extremely accurate indicator. You can see … this is probably about the only day where it’s off here, where you see that after that market trading day, the market immediately traded higher, but you see how this works. When the neural index goes to a red configuration, you get that pull back and consolidation, meaning those average prices over the next couple of trading days are moving below that predicted moving average, but the overall trend is still very much to the upside. You see it again here, where that neural index goes bearish, you get a little bit of a dip, but the overall trend, again, still to the upside. You want to hold onto that position.

Lastly, to really round out the entirety of these forecasts though, you’re also given an intraday predicted high and low level, and those can actually help with setting limit orders, profit targets, doing some short term trading, and potentially adding to your position in a trending move that’s working for you. So if we go ahead and look at how accurate all of those actual predictions were against the then actual market data you see filling that range there, you see how this works over the duration of the last month here trading Amazon. You’re going to be buying down at these predicted low levels. You see you’ve come across really four of them in a row, and then get this huge move higher over the next three days. Again, moving down a little bit more aggressively here, but you see how those predicted ranges really adapt, and that’s a huge part of this technology is its ability to take in the market data, look at those intermarket relationships that are happening, and then forecast utilizing these predictive indicators moving forward so that you know what to be prepared for moving forward through time over the next trading days.

And you see how this works very well as far as getting in at a great intraday price, but understanding that the overall trend is still up. As long as that blue line remains above the black line, you’ve got a trending market. So we go ahead and look at this overall opportunity here over the last month, Amazon shares up 16 and a half percent here, about 500 shares, maybe five option contracts. You see a substantial amount of profit there, over $206,000. Obviously a more expensive stock, but still a 16% move just over the past month here.

Electronic Arts

 

Electronic Arts

Now moving on to Electronic Arts, very similar situation where you see this coming through around the 9th of June, getting this crossover to the upside, and again, look at this neural index, how it understands and says, “Okay, well look, there may be some weakness over the next 48 hours. You get those lower lows in the market, but you see a lot of separation between that blue line prediction and the actual,” letting you know that the overall trend is still up.

You see, again, you run a little sideways when these neural index signals get bearish, but that’s just letting you know, “Look, expect some weaker price action. Don’t panic here as the market declines a little bit, and have your orders waiting down at these levels so that you can get a good intraday price over that next 48 hours of weakness,” and again, we see a very nice opportunity to the upside here with Electronic Arts, breaking out a little bit more recently, but getting an average price over here, you’re up over 10% just in the past 15 trading days, so really just a few weeks of time.

ETSY

ETSY

Here’s shares of Etsy. Again, you’re going to notice that a lot of stocks move in tandem and we’ve had a big grouping of stocks move up together, and a large grouping of stocks actually start moving down together, and many of these things come through at the same time. So what you’re able to do is actually utilize an intelliscan feature that actually pulls out these fresh crossovers when they occur.

So rather than looking at chart after chart, you actually have a system to deliver where are there fresh trend reversals in the market and therefore new trading opportunities? And you see here that over the course of … we can see if we bring up our profit calculator, as far as how many days this has gone through, you see about 13 trading days this neural index has remained up. The only time it went negative here was really here, where you see that you actually do get a little bit of a weakness where you’re trading back down to the predicted moving average, but over the course of this, you see you’re getting an indicator that is extremely accurate over those 48 hour windows, saying, “Look, the trend is up. You clearly want to be a buyer here. You’re getting a lot of strength from that neural index, and again, a lot of strength from those predicted daily ranges,” moving higher and higher, meaning every day you get a new forecast and those ranges are moving higher.

You see on this day, the range goes lower after that neural index signal, but does a great job of highlighting the intraday price moving forward. So a 36% rally here in just the past 13 trading days in shares of Etsy, really nice move there, just over really the tail end of June there, this last couple of weeks here.

RESMED

ResMed

Shares of ResMed, very similar situation as well, getting this crossover to the upside in June. So again, seeing a lot of stocks turn up in June. You want to have your radar that says, “Okay, well, we’re seeing a lot of things move higher. Let’s pick our spots where we’re seeing some strong crossovers, some strong neural index signals,” and you see again here, the accuracy of these forecasts, where neural index goes bearish here. So you’re getting those subsequent 48 hours of weakness from these forecasts that come through, but then very clearly, things getting straightened up and saying, “Look, this is in a very strong uptrend with that blue line very much above the black line, suggesting average prices going forward are predicted to be much higher here. You want to go ahead and make sure that you are long a market like ResMed here.”

So again, we’ll take a look at the overall move here. A nice move of about 18%, about 18 and a half percent so far in just the past 20 trading days, but when you go ahead and look at these predicted highs and lows, you get a good measure of, “Okay, well, I want to have these orders sitting down and waiting at these predicted low levels,” and in this case, you’ll see this every once in awhile, you see all the price action takes place above the predicted range and you see what happens is the next day you come back to that previous predicted low, but the overall trend, very much on the upside here, and you’re getting these early clues that let you know, “Look, there’s some volatility coming in.” You’re getting bullish, bearish, bullish. Expect that range to expand, but you have these predicted levels coming in and letting you know, “Make sure you’re aware of those levels, not having stops sitting up in those ranges, and make sure that you capture that overall move.” So you see about an 18% rally there just in the past 20 days in shares of ResMed.

Cracker Barrel

Cracker Barrel

Lastly here, Cracker barrel stores. I wanted to bring this in because we’ve seen a lot of stocks pivot to the downside, and this was actually a Thursday. There was a big 5% decline in the major indices, very big move that comes through, but it’s very important to understand that what this software is able to do is adapt. So rather than just looking at Cracker Barrel and trying to figure out and get dragged around, as far as those moving averages, what it’s doing is looking at those other restaurant stocks, looking at ETFs, looking at the broader indices and understanding how this is going to affect Cracker Barrel stores moving forward, and what this does is it allows this to be a very adaptive tool. So where we see that on the way up, very clearly we’re in an uptrend. We can go ahead and use those predicted highs and lows again, to determine, okay, well intraday where we can have those limit orders waiting to go ahead and get involved in the uptrend, but very quickly things from here on saying, look, the trends reversed.

So I mean this is a huge move. I mean an unbelievable, huge amount of volatility here as far as the overall move here. So you sort of understand that the percentage daily ranges are quite large as this market advances about 40%, but you see very clearly from this point moving forward, and this has been the case with a lot of these restaurant stocks. We look at McDonald’s and Cracker Barrel, some of the retail things made this shift and haven’t recovered. So you really want to understand where are those areas where there’s still a lot of strength and you can play that bullish side, and where do you need to go ahead and get out of the way, because that blue line has crossed below the black line and therefore, well, what you’d be doing is looking to short position. So if you have an order waiting on a day like this, you see probably some low volume in getting a market moving higher, but you get filled up at this open.

And again, you see the software adapting and getting really on line with those predicted highs and lows and letting you know, “Okay, well, if you want to short this market, where do you want to come in and do that? But very clearly? You do not want to be long in a market like this,” and we see, again, our analytics getting some bullishness here, but the overall trend still to the downside. So not a place to be playing around on the bullish side trying to get long here. Look towards those other markets that are performing much more strongly and moving higher and higher over the past couple of weeks, where we didn’t really respond to that weakness on that Thursday a couple of weeks ago and have been moving higher ever since here. So once again, this has been our Hot Stocks Outlook for July 3rd, 2020. Thank you all for watching, best of luck out there, and bye for now.