Hot Stocks Outlook for the Week of

June 5, 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 New York Times (NYT), Splunk (SPLK), Amex (AXP), Delta Airlines(DAL), Cincinnati Financial (CINF), and Big Lots (BIG)

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This Week’s Hot Stocks Outlook

Hello again traders and welcome back to the Hot Stocks Outlook for June 5th, 2020. Hope you all are having a excellent week out in the financial markets, and as always, plenty of opportunities to cover in this week’s outlook. We’re going to go ahead, start out with shares of Splunk here. We also had some more recent opportunities here in Amex, Delta Airlines, Cincinnati Financial, which we’ll go ahead and revisit from a past few weeks ago, New York Times and lastly, Big Lots here.

A lot of things to cover here, but let’s start here with Splunk and really highlight how you utilize all of these indicators and tools provided in this platform. Now, what we see here is daily bars and candles. Each one of those candlesticks you see represents a full and complete trading day and right up against that price day, you’ll notice that there is a black line and also a blue line. Now the black line that you see there is a, what we call a actual simple moving average. And that’s what it is, it’s a simple moving average. And what it does is it looks back over the previous 10 close prices, adds them together and then divides by 10. And that acts as a good measure of where market prices have been. But of course, as traders, we want to know, okay, well we’re prices going forward? Where are they moving next so that we can be ahead of a market move?

SPLUNK (SPLK)

What we want to do is actually compare that black value to this blue line that you see right up against the chart. And for this value to be calculated, Vantage Point is doing a very sophisticated type of analysis called intermarket analysis. And it’s utilizing the technology of artificial neural networks to do that. What does that mean? Well, that means that for specifically Splunk here, specifically this one stock or this market, Vantage Point is looking at up to 35 intermarkets. Other markets that are known to drive and influence the future price of this asset. That can be things like the S&P 500, that can be things like crude oil prices, global currencies, like the US dollar, a lot of individual tech stocks or tech ETFs, global interest rates. And what we do is determine how these other markets are positively or negatively influencing the target market’s future price.

And so those calculations are then used to actually generate predictions. You can think of that as price that hasn’t yet occurred yet off to the right hand side of the chart here. And those predictions are actually built into the value of this predicted moving average, turning what was a lagging indicator that just looks at past price and gets dragged around, into a forward-looking predictive tool. Whenever we see this blue line cross above, in this case, the black line, it’s suggesting average prices are expected to move higher. As a trend trader, you understand, well, now’s the start of a new trend. As a shorter term or day trader you want to understand, well, what direction should I be trading the market?

SPLUNK (SPLK)

We see Splunk, you’re getting this crossover to the upside all the way back in April 30th. Really just the past a month and a week here, but at the bottom of the screen here, you also see that there is a green bar that goes from green down to red, flips back and forth. This changes every single day. But what it’s doing is again, utilizing those artificial neural networks, but forecasting very short term strength or weakness, 48 hours ahead. Again, a predictive tool that is gauged to be just over the short term, just over 48 hours or two candlesticks. You can think of it, it actually in a way measures volatility. You’ll see that when that neural index goes bearish, you often get a little bit of weakness, but as long as that blue line, those average prices are expected to remain above the black line, the overall trend is still up.

You often see that once that red configuration comes from the neural index, you get some weakness in some lower lows, but the overall trend is still very much to the upside here. We see here in shares of Splunk and actually to round out, the entirety of these forecasts and how every single one works is, at the very right hand side of the screen you also see a shadow candle and what that is, is a predicted high and low. Actually in addition to the overall trend predicted direction, in addition to the 48 hour short term strength or weakness, you have intraday highs or levels. Actually pinpointed highs and lows that can help you decide, okay, well, where should I set my limit orders? Where should I go ahead and take profit? How should I best manage this particular opportunity based on the combination of these predictive indicators?

And so if we look at Splunk here, we can understand that this market is clearly in an uptrend, but how well do those predicted highs and lows do at guiding us? Well, you can see here that even after this trading day here, we have a predicted low and predicted high actually slant down a little bit. They slant a little bit lower here and you see, we get these lower lows set in again here. Before this trading days occurs, you have this predicted high and low slanting lower saying, expect prices, expect a short term retracement, but the overall trend’s still very much to the upside. And you have all these levels to come in and take action in and actually be adding to your existing position. Assuming you’ve made some money on the early part of this move higher.

But shares of Splunk here up pretty significantly. A really nice move over the past month of about 40% in just the past 23 trading days. When you understand, hey, where should I be looking to go ahead and get long in the market? We have all these tools, not just to let you know when the trend reversed, but if the trend is still up, where to accept prices in that market and really make the most of one of these opportunities.

American Express (AXP)

American Express

Here, more recently, American Express, you see that we have a crossover to the upside right here, neural index very bullish going through that period and saying, look, this market here is in an uptrend. Go ahead and again, use those predictive tools to guide you as far as where do you want to go ahead and take a position? And you see that if you have orders, limit orders waiting down at those predicted lows, you’re going to be getting filled, not just in this first day after the crossover, but multiple days thereafter and understanding that yeah, there may be some volatility, but as long as that blue line, you see very, very much extended away from the black line. Letting you know that average prices are much higher than where the market has been. And the overall trend is still intact.

Delta Air Lines (DAL)

You see shares of Amex here up over 20%, almost 21% in just the past 11 trading days. Really just a couple of weeks of time there. Delta Airlines getting a lot of attention, obviously things that were really beaten down because of the virus and COVID and all this, what we have here is a crossover to the upside, very similar to Amex, where a lot of stocks started performing quite well. Neural index very bullish over that time period. And again, giving you that guidance that says, look, if you want to come in and buy Delta Airlines, just have a limit order down here waiting. Let prices come down to these predicted lows before you go ahead and get involved and really make sure that you get the best price possible as far as that intraday window, where you might be trading.

Delta Air Lines

Here we see about a 26% rally in just the past nine trading days from where those predicted lows were hit. And another example of a huge separation between that blue line and the black line, suggesting that this is a very strong trend and you can go ahead and again, manage that opportunity with the help of these predicted highs and lows and that guidance.

Cincinnati Financial (CINF)

Cincinnati Financial was actually a stock that we highlighted. This moved to the downside. But the week after we highlighted that, we said, “Okay, well now we have a crossover to the upside.” If you were short, you want to go ahead and cover those positions, take those profits from that short position. And you see, well, how has the market performed since those crossovers came through? Well, you see, you got a little bit of red here from the neural index, letting you know that there may be a little weakness over the next couple days, but the trend very much to the upside. Meaning over the past couple weeks, you’re not going to be making any money by shorting shares of Cincinnati Financial like you were over the previous month. And again, these opportunities to go ahead and add into that existing position and make sure you’re to the upside or even more, just making sure that you’re not short and waiting till these tools say it’s okay to short again, if you want to remain on the short side of things.

Cincinnati Financial

New York Times (NYT)

Really nice opportunity here again, the past couple weeks, very clearly don’t remain short here. And you see recently this market running up to some shorter term, fresh new highs. Here’s the New York Times, which I believe we looked at this last week. And I always like to bring an example like this in the highlight, how you may recognize a trend reversal early. Get in at the beginning of these crossovers, maybe at a predicted low soon after the trend moves to the upside. But you want to, of course, determine is the trend still up? Just like Cincinnati financial, you need to know, is the trend still down? Should we remain short? Or should we reverse that position? Well, when you get involved, especially early in a trend and it really starts to work for you, that gives you a tremendous advantage in using those profits and should the trend remained up, you can keep adding to that position.

And you see here that just over the past couple weeks, what would you be doing if you’re trying to get long here? Well, you’re going to have orders waiting down at these predicted lows. And again, another market, finding new highs in the marketplace. You see early on, very nice entries here as the predicted lows get hit about three, four days in a row actually before the market makes its first initial breakout. But shares here in New York Times up 27% in just the past 24 trading days. Again, a 500 share position here of a fairly cheap stock, we’re only trading in the thirties here, made about $4,400 just in the past 24 trading days. Pretty much about a month calendar time, a little bit longer than that.

New York Times

Big Lots (BIG)

And lastly here, let’s take a look at Big Lots. And again, to that point of, you want to get into these trends early. That’s certainly the goal. And we can actually run scans inside of Vantage Point to highlight which markets are reversing, whether to the upside or to the downside. And we can recognize these things and have them really delivered to us right when those crossovers and trend reversals occur. But you want to remain in a market when it really starts to work for you. Because the last thing you want to do is buy this market down at 13 and take all your profits at 14.50. And we see here that this blue line here has remained above the black line, suggesting look, this is a very strong trend here. We’ve again, got that help and guidance from these daily predicted lows that are going to come through and let you know that look, clearly over the past what’s now been almost three months here, two and a half months, this market’s been an uptrend.

It gets very clear on what you should be doing as far as which indicators to be paying attention to. Well, buying down at the predicted lows. Once you have that position, if you’re really short term, taking profit up at the predicted highs, but you see that there’s really only one way to trade this thing. Buy at the predicted lows, target the predicted highs, add to your position along with that bullish trend and just a fantastic opportunity here. You see volatility really starting to pick up there as far as the daily range up here. I’m actually curious about this. We’ve got a daily range here on a couple of these candles of about 14%. When again, you come into these opportunities early, you’re up well over a 100% on the trade, you can do extremely well on these days by buying at these predicted lows and taking big chunks out of the market on a percentage basis. Here again, just 500 shares of a $12 stock, has you up $12,665.

BIG LOTS

Once again, that’s going to be our weekly stocks outlook. I really hope all you traders out there are really having a fantastic week. There’s been a lot of tremendous opportunities out there. A lot of volatility, huge percentage moves. Once again, this has been our Hot Stocks Outlook for June 5th, 2020. Thanks again for watching. Best of luck and bye for now.