Hot Stocks Outlook for the Week of
June 12, 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 Dollar Tree (DLTR), Humana (HUM), Boston Beer (SAM), KB Homes (KBH), and Monster Beverage (MNST)
This Week’s Hot Stocks Outlook
Hello again, traders and welcome back to the Hot Stocks Outlook for June 12th, 2020. Hope you’re all having an excellent week out there in the financial markets and as always plenty to cover in this week’s Hot Stocks Outlook. Pretty exciting week, actually. We’re going to go ahead, start out with shares of Dollar Tree, we also have Humana, Boston Beer, which we’ve covered several times over the past couple months, KB Homes and lastly Monster Beverage here.
But I want to start out with Dollar Tree and really highlight how this software works, really on any market that you’re getting ready to trade. In shares of Dollar Tree, we can see that what we have here is daily price candles. Each one of those candles represents a full and complete trading day. And you’ll see that there’s a few indicators across the chart here. The first one being right up against the price data, you’ll see that there is a black line and also a blue line. If you look at the bottom of the screen, you’ll actually see that this bar changes from green to red, back to green. We’ll explain that. And then at the very right hand portion of the chart, you have actually a predicted high and a predicted low. Actually a next day intraday levels so that you can buy at limits, shoot for profit targets, really have that prediction of where the daily range is. But it’s important to understand, how are all of these indicators generated? What’s going on under the hood here with Vantage Point?
Now, what Vantage Point’s able to do is actually something called intermarket analysis and it’s utilizing the technology of artificial neural networks to do that. What that means is rather than just looking at shares of Dollar Tree and past prices, like a lot of other technical indicators, Vantage Point is looking at things like global ETF groups, things that model sectors within the individual stock markets, things like individual stocks. Similar companies, companies in the same sector, maybe even companies that don’t seem to share an obvious correlation, things like global currencies, things like global interest rates, futures and commodity markets. All of these markets are known to drive and influence the target price of, in this case Dollar Tree. And every forecast utilizes its own set of intermarkets, because what we’re able to do is find those important market relationships that are specific to this target market that you’re trading. And it can be up to 30, 35 other markets that are going into this calculation.
Now, when all of that information is calculated, it’s actually generating future prices. Looking at those relationships again, whether they be positive, inverse relationships and incorporating predictions that are then generated into the value of these indicators, turning what was a lagging indicator that’s always chasing around past prices on the chart, to a forward looking predictive tool. When we look here at shares of Dollar Tree, what we have here is this black line and blue line. And what that black line is, is actually a simple moving average or what we actually referred to as the actual simple moving average. And that’s just like a common technical indicator. It just looks at past prices, plots that line moving forward. But what we’re able to compare that value to, so that value of where market prices have been, is this blue value.
And this is Vantage Point’s proprietary, predicted moving average. Again, weighted via those Intermarket relationships and that future predictive data. And the idea here is, cut out the lag time in indicators to have actually a forward-looking predictive tool. Whenever you see that blue line cross above the black line, it’s suggesting that average prices are expected to start moving higher. They’re going to be higher than where they’ve been. And it’s usually indicative of a trend reversal in the market. Here we can see with Dollar Tree, we get this crossover to the upside. We’ve had a lot more recent crossovers to the downside, and that’s really what I want to focus on here moving forward. But we see here in shares of Dollar Tree, we get this nice rally higher, pretty nice move over a very short period of time, about 24, 25% rally in just the past 12 trading days. 500 share position makes about $9,500.
But what you’ll also notice is again, we can utilize these predicted highs and lows. When I go ahead and bring up those predicted highs and lows, you understand that, look, if the market’s in an uptrend, if this neural index, which is forecasting short term strength or weakness, just over the next 48 hours, if that’s bullish as well, you really want to be buying at these intraday predicted low levels that are provided to you before each and every trading day. And you’ll see that this market makes a huge rally higher, nice gap up in the chart, but look how quickly now you’re actually getting short term forecast of weakness in the market, and then that market moving into a downtrend. And we’ve certainly pulled back over the past several days.
Now, moving on two shares of Humana. Now, this has been very important for the broader markets and what we’ve seen in a lot of individual stocks. It started really towards the end of March. We saw a lot of stocks turn up in a big way and it’s very easy to see, okay, well, if the market’s moving higher, where are those stocks that have been performing well since March? And how have they looked so far? And what we’ve seen in things like shares of Humana here, huge rally higher. This market has moved, let’s see how big the move is here. This is a big healthcare stock. It has a 45% move over the past 48 trading days. Again, not even a huge position, a 100 shares, 200 shares going to make you, 10, $20,000. But we got this really nice move higher, but what have we seen recently here? Actually crossovers moving to the downside.
You actually see that last week, almost five, six days ago, you got a crossover to the downside in this market that was performing extremely well. Sending you a signal that, why are these markets that had turned up so aggressively in March now starting to actually forecast markets that are moving to the downside? And again, we can utilize those predicted low levels. If you’re coming in and saying, “Look, Humana has been in an uptrend. I want to be buying down at these predicted low levels.” And you see how that works as a good intraday level to be adding to your position as that trend continues and moves forward.
Day traders can go ahead and take that information and use that to get a good entry price and likely within the next 48 hours, you’re going to be moving towards the next day’s predicted high. But then understanding, look over the past several days, you want to go ahead, use those predicted highs to get out of the market. Or also go short if the trend is now down. But very clearly, look, that market has crossed to the downside and said, “Look, this trend that had started at the end of March after that big sell off in the S&P is now over, take your profits and move on to something else.”
Boston Beer was one of these markets that week after week after week, we kept coming through and saying, “Look, this thing just keeps moving up. It’s a good example of how you can understand that if that blue line is still above the black line, you should maintain that position.” And again, now we see last week, getting these crossovers to the downside that say, “Look, this opportunity is over. Look to potentially short the market. Definitely take your profits from the upside.” And for weeks, you have that game plan here is about 65 almost percent move higher in the past 49 trading days.
But week after week just coming in and saying, “Okay, well let me buy at the Vantage Point predicted low.” Buy down at these predicted levels that you’re getting again before each and every trading day, you see you have a shadow candle here that’s saying, “Look before the trading day, you know hey, it’s time to be long here.” For several months, that was a couple months, that was a really good thing to do. You get picked up in the market, market immediately starts moving higher and very clearly here saying, “That’s over. Stop that.” Now, the move is to the downside and you want to therefore act accordingly.
Shares of KB Home, so home builders as well, we see more recently getting this crossover to the upside. Again, early on in that trade, we can say, “Okay, well, how are these predicted lows helping us?” Really nice entries into this market but you see things have shifted here and it’s saying, “Look, the market is now trending lower here. Go ahead and get out of the way. Take those profits.” A lot of weakness from the neural index, going back, even over the past few days there in KB Homes.
Lastly here, Monster Beverage. Again, another one of these opportunities where we’ve had a really nice uptrend that’s lasted for a while here, you see a little bit of volatility. The overall trend here remaining very bullish and letting you know that if you want to be a buyer here, you’ve got those intraday daily levels to come in and make that decision. But things have now shifted to the downside. And what you’re able to do is actually utilize this Intelliscan feature found within the software. And what this allows us to do is actually scan for fresh one day old crossovers between that blue and the black line.
And what you tend to see is large swaths of the market moving up and moving down together. And that can let you know that look, something’s going on. If you start seeing those big stocks that have been performing well, start to turn lower, you understand that something’s a little off there in the marketplace and we should therefore look for potentially opportunities to short the market and definitely realize you want to trim some of these long positions that have been in this pretty considerable uptrend now going all the way back into March here. Boston Beer being an excellent example where we brought this through about three or four times in this weekly stocks outlook. And you see very clearly saying, “Look, trend is now over. You don’t want to be buying this market looking for a rally. Actually look towards those predicted high levels to actually go ahead and set a short position.”
Once again, this has been our Hot Stocks Outlook for June 12th, 2020. Thank you all for watching. Best of luck out there in the markets and bye for now.