Hot Stocks Outlook for the Week of
May 8th, 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), Overstock (OSTK), Papa Johns (PZZA) and Nuance (NUAN).
This Week’s Hot Stocks Outlook
Hello again traders, and welcome back to the Hot Stocks Outlook for May 8th, 2020. Hope you’re all having an excellent week out there in the financial markets, and as always, plenty of opportunities to cover in this week’s outlook. So we’re going to be doing a little bit of a review episode over the past several weeks. We’ve just brought in really dozens and dozens of opportunities, and I definitely encourage you to watch some of those previous videos and sort of roll how these markets are moving forward with us. But one of the things that we’re going to take a look at again is Papa John’s Pizza. We looked at that a few weeks ago. Also Sam Adams, but I want to bring in a few new opportunities to really highlight how this software works, and what’s great is that it works the same way off of any market that you’re trading.
So looking here at shares of Cameco, what we have here is daily price action. So every single candle that you see there represents a full and complete trading day, and there’s really three indicators that round out these predictive forecasts from VantagePoint.
But starting with this black line and the blue line. Now what this black line is is actually a simple moving average. We refer to it as the actual simple moving average, and that’s a very common technical indicator, but it has a lot of weaknesses, and what it does is it really just looks back at past prices. If you want to calculate a 10 day moving average, you take the last 10 closed prices, add them all together, and then divide by 10, and you get that rolling number of where have prices been. And the problem with a tool like that is it’s always really going to be responding and letting you know where the market’s already been. It’s going to get dragged around by that last most recent close. Now again, it’s a very great measure of where market prices have been, but traders need to know where are prices going to go moving forward, so we can be ahead of the moves in the market. So what we’re able to do is actually compare the value of that black line you see on the chart, to this blue value, and for this number to be generated each and every trading day, VantagePoint is performing what’s called intermarket analysis, and specifically utilizing the technology of artificial neural networks to do that. So, well, what does that mean? Well, that means that rather than just looking at shares of Cameco and how that price has changed over the recent period of time, it’s able to look at very important market relationships that are known to drive and influence the future price of this stock. Now, that can be things like the broader indexes, the S&P 500, the NASDAQ. That can be ETFs that cover other basic material stocks. That can be individual stocks, global currencies, global commodities and futures markets.
And what it’s able to do is understand those relationships, and how specifically up to 35 other markets are known to influence the target market, so the one specific market that you are trading, and what it’s able to do is actually generate predictions. So you can think of that as true predictions into the future, as far as price data, and what we do with that data is actually build it into the value of these indicators, turning what were lagging indicators only based in past price action, to forward-looking predictive tools. And so how this works with our predicted moving averages is whenever we see this blue line, or that prediction of the moving average cross above the actual moving average, it’s suggesting that average prices are going to start moving higher, and as a trader, you’d of course want to look for a bullish opportunity. Now, at the bottom of the chart, you see this green or red bar on the chart here. This is also an indicator derived via that neural network process, but it’s only looking ahead two trading days ahead. So every time you get a prediction, it’s only looking ahead, again two trading days going forward into the future and also updating each and every trading day. So a very short term strength or weakness in the market. So will there be some higher highs or lower lows over the next 48 hour period? And lastly, you have a predicted high and a predicted low bar. So actual intraday levels that you can set limit order, set profit targets, do some short term trading or trade management from.
So when we look at shares of Cameco, we can see here that we get this blue line crossing above the black line and we see this over and over again. And we keep referencing this because we actually have an Intella scan feature built into the software.
So rather than just looking at one chart individually and having a look at chart after chart, the software is going to really deliver where these new opportunities are beginning. And you can configure all of these predictive tools to find exactly the type of trade that fits your timeframe and your trading style.
But really a lot of this is based on trend forecasting and suggesting that okay, well if this trend is going to start moving higher, now you can use some of those shorter term tools like the predicted highs and lows to manage the opportunity. But really a lot of this is based on trend forecasting and suggesting that okay, well if this trend is going to start moving higher, now you can use some of those shorter term tools like the predicted highs and lows to manage the opportunity.
And we can actually see if I go ahead and bring up those predicted high and low levels, you can see how accurate each one of these predictions are. So you see we have sort of a shadow candle here that will be filled in by the actual trading data, but you can see how accurate each one of these predictions is moving forward to get you a really nice entry early on in the trend, so you can buy near those predicted highs or just put on a position. But more importantly here, how to manage the position. So if you can use your existing profits to add at a very good intraday level, well that’s where you can build a really nice position with minimal risk and really make a lot of money as the overall trend continues. But that’s really the beauty of this is that you’re getting these continual updates from VantagePoint and letting you know, what are the expectations for the market over the short term and what is the overall trend so you can really execute that strategy effectively? So there’s been tremendous opportunities and you’ve noticed that over the past several weeks, we’ve really been highlighting bullish opportunities in the market because the S&P in the broader markets turned higher. And that’s an obvious, very important market relationship that when the S&P 500 and the indexes are moving up, stocks are likely to move up. And so we want to understand, well, how much is the S&P affecting this? Well, that is built into the value of these indicators along with other markets that are known to influence this market specifically. So about a 65% rally here over just the past 29 trading days. Again, 500 share position, you’re up about $2,000. This is a very cheap stock and there have been a lot of cheap stocks because of that sell-off in February.
So to take just a longer view of what’s been going on in the market. Well, we understand here that stocks moved lower in February, and so it became very clear that all these predicted moving averages had crossed to the downside telling you, look, you want to go ahead and short the market. Depending on the individual stock that you’re trading, you can use the updated predicted highs and lows that are going to be specific to that market and make sure you get some short positions on.
But a lot of this started to change going into really the end of March, and a lot of these opportunities have persisted. So when we look at Papa John’s, when we look at Boston beer, those are opportunities we’ve looked at already over the past few weeks. But I want to highlight how the continual forecast is going to let you do those things like trade management to really make the most of each one of these opportunities.
But very clearly here, we can take a look on the way down. Well, where do we want to be taking short positions in the market? Well, towards those intraday predicted high levels would be a good bet, if we want to go ahead and get on a position and you see that as that trend continues, a really nice opportunity lower.
But then we get about here, and it shifts the other way. And so what would you want to be doing? Well, you wouldn’t want to be going short the market. You’d want to be getting long and buying the market at those predicted lows. Or conversely, even covering your short position at those predicted lows and getting out at a very good level.
But we just see some tremendous opportunities really all over the market. And what’s more important here is this 23% move higher that you’ve seen in Nuance. Well, you’re very likely to make more than that 23% when you’re doing things like buying at these predicted lows, able to take profit as the market moves higher. And again, just buying back in at these predicted low levels and really making the most of these sort of opportunities as the market trades forward.
Here shares of Overstock, more recently getting this crossover to the upside that says, look, go ahead and get long. And really the beauty of this is you see how when you get a little bit of sideways action and volatility, this neural index is really doing its job saying, okay, well expect some weakness over the next 48 hours.
But as long as that blue line remains above the black line, the trend is still intact. So we see here that over the course of this move, I mean this is really a tremendous move here. Market’s up over 200% in just the past 21 trading days. But more importantly is, okay, well it doesn’t really matter if the market’s moved up 20% or 200% if you can’t manage that opportunity.
And you see here when you understand what those expectations are that even after this day, it’s saying, hey, expect the market to trade lower. Or once we’re down there, expect the range to come down here. Don’t have your stop-losses sitting all in this area where you’re likely to be stopped out on what is really expected volatility when you have a tool like VantagePoint and you see as things really get rectified and start to move higher, and you say, okay, well everything’s clear. Short term trend is up. Overall trend is up, buy at these predicted lows and you’ve already made another $6 per share on the way up as the market continues higher here.
So even just from those recent predicted lows from the past few days, you see the market’s up about 47% and you see the market is very quickly coming past these levels, but closing up near that predicted high, almost perfectly hitting that predicted low. You don’t have to run enormous stop-losses, but you have a tremendous amount to gain as these markets correct and start moving higher.
Lastly here, a couple of recap opportunities. We looked at Papa John’s, I believe on the 16th so right in the middle of this chart, and again this is the idea is understanding that as long as that blue line remains above the black line and you have these tools like the predictive neural index, the predicted highs and lows, you have a very good roadmap of how to effectively manage the opportunity.
So if you want to add to that position and you’re way up in the trade from buying back when that blue line crossed above the black line, when it was coming through your Intelliscan feature, well you understand that, hey, I can add to while you understand that, hey, I can add to this position down at these predicted lows with profits and potentially build a really nice opportunity, a really nice position as the market continues to trend higher.
If you get things like you see Nuance where you get that reversal and the blue line crosses below or above the black line, you understand, hey, the trend has shifted. My behavior should shift in the market, but really over the past, let’s see, since the 16th here I believe, we’ve had more and more rallies higher and tremendous opportunities to get into the market, buy at those predicted lows, take some profit out the predicted highs and get back in at an even better price.
Shares here up over 18% just in the past 14 trading days, but the entirety of this move up about 55% in shares of Papa John’s. We also looked at Domino’s, a lot of those restaurant and food companies, more the takeout style stuff, recovering there and Boston beer. Another one of these opportunities where we have this crossover back here. I know we’ve covered this over the past few weeks, but just over the past couple of weeks here of trading, how would you manage that opportunity? Well it’s been very clear that the forecast is still bullish. The neural index is still up. Where are those predicted highs and lows telling you that intraday prices are going to trade? Well, there’s a pretty good roadmap if you want to be buying down at these predicted lows and you’re looking for an opportunity to go ahead and get long.
So once again, just a really fantastic opportunity and it’s been very clear over the past several weeks really since late March, early April that the S&P’s moving higher, stocks are moving higher. Act accordingly and make money over this 31 day period here, as a lot of markets have recovered hugely on a percentage basis. You see this market’s up 45%, $151 per share and moving up even more so this past week.
So whether you’re looking at things on a weekly basis or a longer term trend trader, you have that roadmap to guide you and make intelligent decisions based off of really these probabilities and these highly accurate predictive forecasts that really do a great job at improving traditional technical analysis that lags the market, only looks at where prices have been, and really has no predictive capacity at all.
So once again, this has been our Hot Stocks Outlook for May 8th, 2020. Thank you all for watching. Best of luck out there and bye for now.