Hot Stocks Outlook for the Week of
May 15, 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 Cameco (CCJ), Champions Oncology (CSBR), Cincinnati Financial(CINF), Bank of New York (BK) and Fifth Third Bancorp (FITB)
This Week’s Hot Stocks Outlook
Hello again traders and welcome back to the Hot Stocks Outlook for May 15th, 2020. Hope you all are having an excellent week out in the financial markets, and as always planning to cover in this week’s outlook.
So going to be doing things a little bit differently, and I just want to highlight really starting out this stock Cameco here, and this is actually a stock we looked at just last week, and we see that these forecasts from Vantage Point have this in an uptrend in a very predictable way, in the same way that the broader markets like the S&P 500 have moved higher. So I want to go ahead and highlight this and what we have here though, is very important to understand that right up against this daily price action, that’s all of these indicators are working off of end of day data, but right against that daily price action, you see if there is a black line and also a blue line.
And what that black line is, is actually a 10 day simple moving average. Very common technical indicator. You just take the past 10 close prices, add them all together, divide by 10, and it’s going to be a rolling number, and a tool like that is a good measure of where market prices have been. But of course, as traders, we want to understand where are prices moving going forward. So to make those assessments, what we’re able to do is utilize this tool within Vantage Point. You see this blue line right up against the price data is what’s referred to as a predicted moving average. And for that value to be calculated for traders, each and every trading day Vantage Point is performing what’s called intermarket analysis. So what that means is rather than just looking at past prices of shares of Cameco, this software is able to look at things like ETF markets, individual stocks, things like the global indices, like the S&P 500, global currencies, interest rates, futures, and commodity markets.
And it’s able to understand specifically how those global markets are affecting, in this case, the target market of Cameco. Now some of those relationships can be positive correlations, negative correlations. Some of those relationships can be leading or lagging relationships. And that’s where the technology of artificial neural networks is able to understand how all of these other markets are affecting, driving, and influencing the future price of the target market here, Cameco. So for that blue line to be plotted on the chart each and every day, Vantage Point is utilizing all of that intermarket information and actually generating predictions, and that predicted price is actually used to generate these numbers and these calculations. So I wanted to bring this market in specifically, because this is a market that moved higher with the broader markets, with the S&P 500, with many stocks at the end of March, started to move higher, and here we can see from the entirety of the forecast, that if you’re trading this market, Cameco, you’ve gotten involved in a really nice opportunity to the upside.
Things forecasted again to start this trend at the end of March, market’s moved up over 60% and then you’ve had the benefit of those tools, like your predicted highs and lows to really be guiding you along the way, knowing where you can add to your position. And again, even tools like this, which are more tuned to a really daily price action, they’re really looking at intraday price levels for you to make trading decisions at and guiding you each and every day moving forward. So you see, we’ve actually gotten a fresh crossover to the downside, this predicted high and low range moving lower, and also our predicted neural index at the bottom of the screen, you see that this can go from a green to a red configuration. What this indicator is doing is letting you know about short term strength or weakness just over the next 48 hours. So you can think of that as two candles or two trading days moving forward.
And the reason I wanted to bring this through is because we’ve seen a lot of the market do exactly this, and we can see how markets, even unexpectedly, are going to share important market correlation. So here’s the S&P is moving higher. And we’ve actually just gotten a lot of forecast to the downside here as the S&P rolls over, and most of the stock market, if we’re running these scans on a nightly basis, has actually rolled over to the downside. If I go ahead and bring up our Intelliscan, I’ve got all of the stocks included here in this Intelliscan feature, and we can do something a little interesting here. I can go into greater than zero, set the trend to down, set even our short term forecast from the neural index to be down as well, and you see more than half the market is currently in a downtrend. And that’s what you’ve actually seen over the past couple of weeks as you’re running these scans and looking for new opportunities, is that more and more this market is actually rolling over in really all different sectors, specifically some of these things like financials, which we’ll go ahead and get to.
So I just wanted to highlight that just having looked at Cameco last week, this is a perfect example of how this software works, not just on an individual market basis, but on the aggregate to help you know what’s really going on out there, and in this market specifically, what one should be doing. Now, we’ve seen some areas do quite well, but also with that additional information, what you can understand is, “Hey, well I can go ahead and take some short positions, hedge my overall portfolio, and even on stocks that are still in these strong uptrends, get defensive, maybe go ahead and take some of your profits and just put those in the bag and be ready to cash out, as well as again, take some potential short opportunities to potentially hedge that overall position.”
But here in Champions Oncology we see same thing. At the end of March, this is where all these stocks started to turn up and many remained in an uptrend for the past several weeks, but we just have to understand that the period that we’re in right now is not like what we’ve had over the past several weeks, where we’ve had really strong trends, the S&P 500, everything moving higher. Things are a little different now. So again, we can use tools like our predicted high and low range, where you see over the course of this trend, really great opportunities to come in and buy at these really great intraday levels that Vantage Point is providing. So again, it’s utilizing those predicted neural networks to generate intraday levels, like these predicted high and predicted low levels, this 48 hour forecast from the predicted neural index, and also that overall trend, which we see here in this case for oncology, Champions Oncology, still in an uptrend here.
But more importantly, and again, to highlight some of the weakness that we’re seeing is financials and financials, if the market’s going to move higher, should be performing well as well.
Here in Cincinnati Financial we’ve been in a downtrend really for the past month here, and we see that the neural index is very bearish, a lot of separation between that predicted moving average and the actual moving average, and these markets have moved down pretty precipitously here. This trend so far, just over the past month, shares off over 41% in Cincinnati Financial. Move over to Bank of New York, some of the larger banking stocks, more recently, and this is what I mean by running this Intelliscan, utilizing a predictive technology on the aggregate, so looking at the broader markets, looking at the global indices and understanding that things got a lot more weak over the past couple of weeks, and you should look to exploit that weakness. It’ll be a good thing for your portfolio.
Whereas previous weeks were coming in and things are bullish. Things are bullish. Get long. You need to understand how those things are shifting and get ahead of that, and that’s really where this technology comes into play.
So we see here Bank of New York cross over to the downside. We bring up those predicted high and low ranges, excellent levels over the past week to go ahead and take that short position. And I think we’re going to see how effective it is to have a 10% move already in profit as the market starts to roll over even more, and we get some more exaggerated weakness here. Shares down from those predicted high levels already 10%.
And it’s so helpful to get really nice entries into a market because you can do things like trail your stops, you’ve got a great entry. Be long in things like Champion Oncology, but again, getting defensive, trailing those stops, but having a way to hedge that portfolio and actually take short positions.
Here, Fifth Third Bank Corp. And then we see how much of the markets are correlated. So if you’re trading financial stocks, what you understand is things shifted over the past couple of weeks here, and if the big financial stocks are starting to roll over, and then we start to see the global indexes rollover, which we actually did over the past couple of trading days here, we may have a problem here, and things may start moving towards the bear side once again. So you see again, multiple opportunities here to be shorting up or near these predicted highs and actually the crossover’s coming through out here, so you’re going to be shorting on these trading days.
But again, a few entries to get in on a really nice move as this market’s already dropped a couple of bucks here pretty quickly here if we go ahead and look at this overall. Let’s see, these are predicted highs. You’ve got a market, again, down over about 10% here. Definitely seeing a shift in the marketplace, and for the past several weeks, we’ve come to these hot stocks outlooks, and it’s just been like… It’s long. The trend is up. All these sectors are up. Everything looks bullish. But over this past couple of weeks as you’ve run the Intelliscan feature, and what you’re doing with that is looking at fresh one day old crossover. So every single night you see the new opportunities that are coming through on the upside or the downside, and you’ve seen more of this market now in a downtrend and start to roll over.
It’s very emblematic here of the broader markets when we look at things like Cameco, the stock we looked at last week. Coming into March, uptrend. Things look great. Predicted a moving average is well above the actual moving average. You get that guidance from the short term, a predicted highs and lows, specifically to help manage whichever market you’re trading on the bullish side, using those predicted levels are always going to be unique to the target market. But more recently recognizing that look, some of these great opportunities are now ending and things are certainly… The risks are opening up to the downside. And that’s where a tool like Vantage Point can really get you ahead of these things, understand what’s going on out there, and really help you structure that portfolio, not just from a day to day management and making the most of the opportunities, but then coming in and being able to hedge your overall portfolio with taking some short positions and making money really as the market moves up or down. So have a great rest of the week everyone. Once again, this has been our hot stocks outlook for May 15th, 2020. Thanks again, and bye for now.