Hot Stocks Outlook for the Week of
May 1, 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 Boston Beer(SAM), Energy Transfer(ET), Plains All American Pipeline (PAA), Astrazeneca (AZN), United Therapeutics (UTHR) and OpkoHealth(OPK)
This Week’s Hot Stocks Outlook
Hello traders and welcome back to the Hot Stocks Outlook for May 1st, 2020. Hope you’re all having a excellent week out in the financial markets and as always, plenty of opportunities to cover in this week’s outlook. So we’re going to go ahead and we’ve got Boston Beer to start out a lot going on in the energy equity space. We’ll take a look at that and of course some of these healthcare biotech stocks doing quite well here. So let’s go ahead and start out here with Boston Beer. Really highlight how all of these tools that you see up against the screen work. Now shares with Boston Beer, what we have here is daily price action. So each one of those candles represents a full and complete trading day and you’re going to notice there is a black line and also a blue line right up against the price data there.
Now it’s very important to understand that this black line that you see, that is actually a regular, just simple moving average and a very common technical indicator. If you want to get a 10-day simple moving average, just add the past 10 close prices together, then divide by that number and you get a good rolling average of where prices have been in the past and it’s always going to be reacting to that most recent data that comes through. But obviously as traders, we want to know where are prices headed going forward, and so to do that, what we’re able to do is actually compare that black line value on the chart to this blue value that’s generated each and every trading day. And for this value to be generated, Vantage Point is performing what’s called intermarket analysis and utilizing the technology of artificial neural networks to do that. So what that means is that rather than just looking at the share price of Boston Beer and looking at past price data that’s already occurred, the technology is able to identify very important market relationships between Boston Beer, Sam Adams here, and things like the S&P 500. Things like ETF groups, things like other individual stocks, global interest rates, currencies, futures markets. And so what it’s able to do is identify those important market correlations and relationships, whether they be positive relationships or inverse correlations and it actually uses that data to actually generate predictions. So predictions that have not yet occurred, but rather than just trading off of those predictions, what we’re doing is taking that data and building it into the value of these indicators and actually tuning them so that they’re forward-looking. So they have a very high level of accuracy at predicting short term market forecasts and where are prices going to go next. So when you have that blue line or that predicted moving average, in this case, move above the actual moving average, it’s letting you know really from a trend perspective that average prices are expected to start moving higher. So that blue line is weighted by those predictions to give you a much more accurate tool and indicator. Now, in addition to that predicted moving average you see at the very bottom of the screen, you have this bar that goes from green to red back to green. This is another indicator derived via that neural network process, but it’s really just tuned to look ahead 48 hours at a time. So it’s very short term strength or weakness in the market. And you’ll notice that when that neural index goes bearish, how I like to look at this is actually that you’re likely to trade at the lower side of that predicted moving average. We should expect to trade above and below a particular average, but when that neural index is bearish, you’re much more likely to get some short term weakness in the market. But if that blue line is still above the black line, the trend is still to the upside. So we see here in shares of Sam, really before we go ahead and move on to that is to really round out the entireties forecasts, you’re also given a predicted high and a predicted low. So how I like to think of this, again, is you’ve got your overall trend direction, short term strength or weakness in the market from the neural index. And then all the way towards the right of the chart data here, you see that there’s actually a shadow candle here predicted high and a predicted low and we can actually go and see how accurate each one of those predictions are.
So if we understand, look, the trend is up for the last month here, you want to be buying shares of Boston Beer, Sam Adams. And we can see, okay well every day, where was that predicted low coming in and letting you know, Hey, if you want to go ahead and stick a limit order in here and look to get a good price, most people are going to be buying at or near this predicted moving average and, or not the predictive moving average, the predicted low here. And so even on days like this, if you have a limit order waiting, you get filled right at the open. So that gap down and immediately you see trading higher towards the predicted high. So overall you’re getting some very accurate forecast to not only identify that there’s a trend reversal and therefore a new trading opportunity, but also that how do you want to manage that opportunity.
Where do you want to go ahead and take profits along the way? Where do you want to go ahead and add to your position as a trend continues and use those profits most effectively to build a position here. You see this market’s up 37% in just the past 25 trading days. At 500 shares, you’re up to $62,000 so really nice opportunity to, if you trade options, again signaling where do you want to start that buying and where should you expect those daily ranges to trade into? So nothing’s catching you by surprise here.
Now, what’s been interesting is there’s been some opportunities in the energy space. And very clearly here we’ve seen a lot of these crossovers move to the upside. You see we’ve got Energy Transfer (ET) here, Plains All American (PAA), but all these forecasts work the same way. So you understand that, look, there’s an opportunity here to buy some of these stocks at very, very cheap prices, but of course we want to do that and really limit the risk that we have to take to get involved. So again, we can come in and say, okay, well where do we want to be buying in this particular opportunity? You see this day we shoot up to the predicted high this day.
You’ll see this every once in a while where we come down, hit the previous days predicted low. But overall here, these things get on track and are letting you know, look, you very clearly only want to be a buyer here. You have these levels, you know also when to expect some short term weakness where you see we sort of run sideways for a few days once that neural index gets bearish, but very clearly that blue line’s that predicted moving average letting you know the trend is still to the upside. And we’ve seen a lot of these things explode higher as crude oil recovers. The stock’s much less volatile from the perspective of, they’ve been in a very clear uptrend. There’s not these 10, 20% down days, but here a 55% rally here in just the past 19 or so trading days, 500 shares, you’re up about $1,400 but this is a stock that you could have bought in around $5 a share. Now you’re pushing up above $8 per share. Another opportunity here, Plains All American, very really big energy company here, does pipelines, things like that. But here again, the same time period, you’re going to notice that, hey, energy stocks are starting to show these crossovers to the upside, and if I want to go ahead and trade that opportunity, I have a very clear picture that says, okay, well day to day, let’s use these predicted lows. You see how neural index goes bearish.
The predicted ranges are coming lower, but the overall trend is still very much to the upside. So you have that directional bias that says, look, remain a buyer here. Typically, you want to have orders. If you want to be long, buying at that predicted low is a really nice place to be a buyer. But you see here that you don’t want stops also sitting in all this area as well when Vantage Point is forecasting that, look, the market can easily trade towards those predicted lows. But very clearly the trend is up. And if we get that blue line crossing below the black line, well understand, okay, well let’s go ahead and take profit on those, get short the market and make money that way as well. But just a huge opportunity here in these energy stocks and just a lot of these stocks beat down and when these things recover, you see shares up about 62%. Again, 500 shares has you up $1,700. 500 shares is like 2,500 bucks. So, I mean a very small position size, making a tremendous return here.
AstraZeneca and a lot of these healthcare stocks, we’ve got AstraZeneca, United Therapeutics, Opco Health, same thing, and we noticed that the market turned up really a month after it went lower. It was February 18th through the 20th, the market made those turns from the predicted moving average start moving lower. But towards the pretty much, almost a month later in March, we start seeing all these crossovers to the upside. And so you can therefore pick those spots where you want to go ahead and participate in the market. But the best thing about this is you’ve got that guidance moving forward so that if the trend is still intact, well you want to be a buyer in the market setting those limit orders to pick up more of a position here.
And as long as that blue line is remaining above the black line, look, the trend is up, remain in this particular market. Once that blue line crosses below, you understand the trend is over and you can move on to something else or even go ahead and reverse your position. AstraZeneca here shares up 26% again, 500 shares, a little higher price value stock, but not really only about $40 a share. They are up about $5,200 in just the past 24 trading days, pretty much the past month on the calendar here. United Therapeutics, exact same approach. So regardless of the markets that you’re trading, you have that guidance that says, look, this market is very clearly been an uptrend. You got a little bit of sideways action and you see that neural index letting you know, hey, expect those daily ranges to move below the predicted moving average.
Don’t expect maybe too much acceleration when we have that contradiction between the predicted neural index down here and the predicted moving average. But you see that blue line remains above the black line. And if you want to go ahead and again manage the opportunity, you’re going to have really the guidance from these predicted highs and lows to really understand that, okay, well expect volatility but get a really great intraday entry while that market’s sort of chopping sideways for a while, you’re getting really nice fills at the lower part of that range before the trend continues and things really accelerate to the upside. So again, we see some of these neural index getting bearish, the daily ranges, letting you know, look, if you want to go ahead and adjust that position, you can go ahead and do that early, improve your overall price here.
But again, looking at the daily range, not the daily ranges here, but the overall trend, still pretty squarely above that regular moving average there. And we see over the course of, again about a month’s time and what you’re going to notice about this is most of these stocks turned up at the same time. You’re seeing a lot of correlation with the S&P 500 and individual equities.
But really what you want to do is pick those spots and of course manage the opportunity as effectively as possible. Knowing, hey, where can I use my existing profits from the first couple of weeks to add into that position and not have to take a whole lot of risk, but participate in what could be a tremendous opportunity there.
So again, 25% move, not too shabby there from United Therapeutics. Here, Opko Health, very, very cheap stock.
But again, everything’s getting very, very cheap and you see that crossover to the upside. Neural index here just saying, look, the trend is up short term over the longterm as well. And again, one of these really nice opportunities to say, okay, well if I want to be a buyer, especially in something that’s going to be very volatile and fairly cheap from a per price a share perspective, where do you want to come in and do that and make sure that you’re not having to run these huge stops but still participate in that overall move that’s occurring and a really nice opportunity here. I mean, you’ve got a market that’s moved up from about a dollar per share now over two bucks, a 67% move, this just in the past 17 trading days here. So again, really nice opportunities to get involved in these areas of the market.
So when we see the broader markets just generally turning up, things like Boston Beer, even restaurants, retail and stuff, starting to recover and not finding new lows especially, but you really want to pick those individual areas of the market where you see the most strength, and Vantage Point providing the most forecast, starting to move to the upside helps you understand that, hey, something’s going on with the whole sector here. Let me identify an individual market and really manage that opportunity to make the most of getting that capital in the market and taking on some risks.
So once again, this has been our Hot Stocks Outlook for May 1st, 2020. Thank you all for watching. Best of luck out there and bye for now.