Hot Stocks Outlook for the Week of

March 6, 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 Wells Fargo (WFC), Dicks Sporting Goods (DKS),  Skechers (SKX), Rambus (RMBS), and Regeneron (REGN).

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This Week’s Hot Stocks Outlook

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 Wells Fargo (WFC), Dicks Sporting Goods (DKS),  Skechers (SKX), Rambus (RMBS), and Regneron (REGN).

Hello traders, and welcome back to the Hot Stocks Outlook for March 6, 2020. Hope you all are having a great week out in the financial markets and as always plenty to cover in this week’s outlook. So we’re going to go ahead start out here with Wells Fargo, one of the financials. We’ve also got Dick’s Sporting Goods, Sketchers. We’ve been looking at the shoe companies quite a bit, Rambus here and lastly Regeneron. Starting here with Wells Fargo and really just a good example of what we’ve seen across many of the financials.

Wells Fargo (WFC)

wellsfargo

But what we have here is daily price action. So each one of these candles represents a full and complete trading day, specifically for Wells Fargo here and you’ll see right up against that price data, you have a black line there and also a blue line. Now, the black line that you see there against the chart, that is actually a regular simple moving average, or what we refer to as the actual simple moving average. All that does is really tell you where past prices have been. This is really the weakness of many technical indicators, and that they only looked back at past prices, and they only look at the one market in question as if they’re not driven by global market relationships.

So, what we’re able to do is compare that black value to this blue line that’s plotted each and every day on the chart. But for that blue value to be charted, VantagePoint is performing a very sophisticated type of analysis known as Intermarket analysis. So it’s looking at relationships between markets and utilizing the technology of artificial neural networks to do it. So, instead of just looking at past prices of Wells Fargo, what this software is able to do is look at relationships that can be within different ETFs, things like the broader indices like the S&P 500, global currencies, global interest rates. It’s able to understand how those market relationships are affecting and driving, and influencing the price of Wells Fargo moving forward. So what this is able to do is actually use that Intermarket data to generate future prices. So you can think of that as prices or predictions that haven’t yet occurred and actually build that into the value of these indicators turning what was a lagging indicator into a forward-looking predictive tool.

So, what we have here with these lines here, is this blue line signaling that average prices are expected to start moving lower, and you can use that blue line as a good guide of where average price is likely to be over the next few trading days. Now, in addition to that predicted moving average, you’ll see at the very bottom of the chart here, we have a bar here that goes from red, to green, back to red. This, as well updates every single trading day, but is a little different in that it’s tuned to only look ahead 48 hours ahead and really forecast short term strength or weakness in the market. So not the overall trend, but just short term strength or weakness, where there’ll be some higher highs or lower lows over that 48 hours into the future.

Lastly, you’re actually given an intraday prediction. So you see that we have this shadow candle here jittering a predicted high, and a predicted low so that you can go ahead and place limit orders in the market, really have everything set up before the next trading day to know, okay, what direction is the market headed? Is there some short term strength or weakness I need to be aware of? And what’s a good level to go ahead and accept prices? So, we see here with Wells Fargo, and really again many of the financials, and many stocks just in generally around 218 starting to see these crossovers to the downside and you see how these predicted levels work.

Again using those predicted highs and lows, and all of these predicted high and low ranges that you see, you see that they really plot forward. So, you see after the trading day we’ll get a candle, whatever happens, to occur here, we’ll fill that space and we can see how accurate all of those predictions are. So when you know, hey look, I want to be short the market. Ideally, I want to be getting shorts up near these predicted highs, and one of the great things about the software is its ability to adapt. So, taking in that market data after each and every trading day and then these neural networks plotting. Okay, what is the overall moving average? Where are the next day’s predicted highs and lows and neural index? Is that bullish or bearish here? You see we get in this market down 19% really, I know this predicted high was hit, here’s about 18% from one of those levels where it’s very easy to go ahead and not take a huge amount of risk, put in your stop loss, and that trend continuing to the downside.

You see that blue line well below the black line and again a lot of weakness here, a lot of separation between that blue line and the black line value. Now, interestingly shoe companies, so we keep bringing these in every week, whether it’s Steve Madden or Sketchers, I think we brought in Crocs as well, but really the same thing here coming back again that 217 right when the market started to turn, you got a lot of stocks coming through the Inteli-Scan feature here. Moving to the downside and letting you know that, look, the trend has now reversed, look to go ahead and get short. We see that again, these predicted high levels, you may not hit them the first trading day or so. You can always go ahead and put on a position as a trend trader, but ideally looking towards those levels to go ahead and actually stake out a position.

Dicks Sporting Goods  (DKS)

dicks

You see that blue line well below the black line and again a lot of weakness here, a lot of separation between that blue line and the black line value. Now, interestingly shoe companies, so we keep bringing these in every week, whether it’s Steve Madden or Sketchers, I think we brought in Crocs as well, but really the same thing here coming back again that 217 right when the market started to turn, you got a lot of stocks coming through the Inteli-Scan feature here. Moving to the downside and letting you know that, look, the trend has now reversed, look to go ahead and get short. We see that again, these predicted high levels, you may not hit them the first trading day or so. You can always go ahead and put on a position as a trend trader, but ideally looking towards those levels to go ahead and actually stake out a position.

Skechers (SKX)

SKX

 

Rambus (RMBS)

And certainly, you can add to your position at those levels. So go ahead and take a position and then you know, manage the opportunity off of those predicted levels that are coming through after each and every trading day. So again, really nice opportunity here. Just so much of this market moving to the downside, over 14% decline there in Skechers and you know, if you trade options, it’s really the same thing. Just understanding that, okay, well this is where you want to go ahead and start executing those options, whether you’re buying puts, or calls, or strangles, or whatever you might be doing there. But understanding that look, the trend is now down. The bias should be to the short side and where you can add to those positions, whether it’s through the shares or through additional option contracts at those predicted high and low levels.

 

RMBS

 

Here Rambus, so a little bit of the technology space, again, very similar. So much of the market you know becomes correlated and this is why you want a tool that’s looking at those intermarket relationships. So it’s looking at things like, you know the technology ETF. It’s looking at things like the S&P and the NASDAQ, looking at global currencies, looking at other related tech stocks and letting you know that look, there’s no reason to be long here. All of these tools are really moving to the downside here. Blue line crossing below the black line, you see a little bit of strength from the neural index coming in here. Just again, I point this out often that often you’ll see the market trade, above the predicted moving average, doesn’t mean the trend is now moving to the upside or anything like that. But you’re likely to see some higher prices over those subsequent 48 hour periods where that neural index gets bullish.

So again, really nice opportunity to the short side here in the market. I’m sure we hit some of these predicted highs earlier in the move here. Yeah, pretty much these first two trading days here before things really start to decelerate to the downside, but 14% move to the downside there and shares of Rambus. Lastly, Regeneron here, so not too many bright spots throughout the marketplace. But Regeneron is one of those areas that really has exposure to vaccines and things like that. But certainly difficult to trade in these environments, and so you want a tool that says, okay well how can I go ahead and pick my spots more efficiently? Again, we see here the trend, this is going back all away to really the beginning of February. So you see that Regeneron gets a crossover to the upside, lot of strength from the neural index suggesting this is a place to be and you see that we’ve never gotten that cross to the downside.

Regeneron (REGN)

REGN

So the trend has consistently been up here, a couple of blips where the neural index goes bearish and you see you get that sideways price action. Again, trading below that predicted moving average but still the trend very much to the upside. And again, we can come in with the help of those predictive tools and understand that, okay, well if we’re getting involved in this stock, where do we want to go ahead and do it? You see just days like this are fantastic where you get a gap down and then immediately trading higher. A little bit of volatility here as you see, you break a little bit lower, but look how quickly the tools adapt and say, okay, well look, let’s get… Take in all that data, get back on track and say okay, well where are those predicted levels coming in? So that you can keep executing, managing the position, and stick with that trade and really pull the most out of it.

So, Regeneron here marching much higher, really over the last month and a half or so here, up 39% just in the past 21 trading days. So, just some fantastic trading opportunities. Certainly, if you have a portfolio that’s heavy, long the market. The software like this is really sending a very powerful signal that says, look, there’s some weakness out there in the equity markets, and the S&P 500, and the NASDAQ, all of these indices turning lower. Then when you run the scan, so actually we can use this Inteli-Scan feature and identify fresh crossovers and new opportunities that are coming through each and every trading day. Generally, a lot of these things share some very strong correlations and you see a lot of similar stocks like Wells Fargo, Bank of New York. A lot of these things turning lower at the same time and really let you know, hey there’s some weakness here, and you want to go ahead and either get out of the way or take advantage of it and capture some of these double-digit moves to the downside recently.

So, once again, this has been our Hot Stocks Outlook for March 6, 2020, thank you all for watching. Best of luck and bye for now.