Hot Stocks Outlook for the Week of

November 20th, 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 Properties(BXP), Avalon Bay(AVB), Wynn Resorts(WYNN), Baker Hughes (BKR), Alcoa(AA) and  Helmerich & Payne (HP) 

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This Week’s Hot Stocks Outlook

Hello again traders, and welcome back to the Hot Stocks Outlook for November 20th, 2020. Hope y’all are having a excellent week out in the financial markets, and as always, plenty to cover in this week’s Outlook. We’ve got a really broad-based sector starting to move here. We’ve got some property companies here. We’ve got Boston properties, Avalon Bay, also Wynn Resorts, so a resort hotel casino company. Also, we looked at the energies last week, so we’ll go ahead and update things that are going on there. And lastly, shares of Alcoa.

Boston Properties(BXP)

But what I really want to highlight this, and we looked at this last week with the energy stocks starting to turn higher here. We’re going to see some property company examples, but you really want to understand how the sectors are starting to rotate and where potential opportunities and also risks are developing in the marketplace. And that’s where tools like the VantagePoint Intelli-Scan is very helpful. Now, we’re going to highlight exactly how all of these predictive tools work and how you can use them on a daily basis to get that forward-looking prediction to base your trading decisions off of. But we have these analytic tools that allow you to really sort through huge sectors of the market. You see, we’ve got all of these different base material companies, all the different categories here, if I scroll down, all the different sectors in the marketplace.

But it’s very important to understand when these markets shift around. And that’s how what you can do here is actually tune these columns here to really drill down on, okay, what type of trader are you? What timeframe are you looking in? And really tune these indicators to deliver that to you, so you can understand when energy start to turn higher that, Hey, there’s a real opportunity here. Let’s go ahead and look to put in those limit orders and potentially get involved in a particular market here.

But starting here with Boston Properties, you’re going to see really how this works. Now, if we look at the early part of November here, what we have on this chart is daily price action. So each one of these candles represents a full and complete trading day. And you’ll see right up against that price data, there is a black line and also a blue line. Now the black line that you see there, that is a regular simple moving average. It’s a very common technical analysis tool, but there’s a problem with traditional technical analysis. And what that is, is that all of the data that creates any technical indicator is looking at past price, meaning it doesn’t have any predictive capacity. And really, it has the problem of getting dragged around by the most recent price action and creating a lot of false signals.

Boston Properties

So what we use the moving average for, is really just as a good measure of where market prices have been and really not much more than that, right? It just smooths out that price data. This is where things have been on average over a certain period of time. But obviously, as traders, we need to understand where’s the market moving next? And so, what we’re able to compare that simple moving average to, is this blue line or what’s VantagePoint’s proprietary, predicted moving average. And what this indicator is doing, and really for it to be plotted on any of these charts, what’s going on really behind the scenes with VantagePoint is, VantagePoint is what’s called neural networks, a type of artificial intelligence, to perform what’s called intermarket analysis. And this is key to really getting an edge on prediction and creating reliable tools here.

Now, what that means is specifically for the target market, so in this case Boston Properties, VantagePoint is looking at what’s called inter markets or markets that are known to drive and influence the future price of the marketing question. That’s going to be things like individual stocks. That’s going to be broad-based things like the S&P 500, the futures markets, things like currencies and interest rates. Of course, things like ETFs, which are a big basket and a whole sector or a group of stocks here.

And a lot of these relationships that are taking place, and mind you, it’s looking at 30, 35 plus relationships, but a lot of these things can be positive relationships, negative relationships. They can be leading and also lagging relationships. And a lot of this data, and what we’re able to pull out of it, is not something that a human’s going to be able to do just by holding up charts back-to-back and sort of eyeballing. It doesn’t really give you a reliable statistical confidence, as far as just comparing a couple of charts at a time. There’s a lot more going on out there.

And so, what happens is, through that intermarket analysis, it actually generates predictions. So things that have not yet occurred in the market, future price predictions, and it uses those predictions and actually builds it into the value of these predicted moving averages. So rather than having tools that just look at the past and get dragged around by what’s already occurred, you have a true prediction that’s letting you know what’s going on and what’s happening next. And so, whenever specifically this indicator here, you see that blue line crossing above the black line, suggesting average prices are going to start moving higher. And therefore, as a trend trader, or a swing trader, or even a day trader understands, look, the trend is now up. Look to go long the market. And we see here, we’ve gotten a really nice move in a lot of these property companies, but we want to look a little bit more closely here.

You see, overall, you’ve got a 29% rally so far, as we watched a lot of these property companies, again, through the help of that Intelli-Scan turn up in early November and have been some really nice opportunities, along with some of the energies that we looked at last week here. But a lot of this really comes down, and especially for traders to help manage their positions, is short-term forecasting. And what really VantagePoint does here is if you look at the bottom of the chart, you see you have this indicator that goes from green to red, back to green. This updates every single trading day as well, and is also utilizing that neural network approach.

But this is tuned to look ahead 48 hours at a time. So you can think of it as looking ahead a couple of trading days into the future and highlighting that short-term strength or weakness. Again, with the predicted moving average, again, that’s weighting some of those future price predictions, this specifically is tuned to look ahead 48 hours. And it has an accuracy rate of plus 80%. And you’re on 87, 88%, pretty much four out of five times. This indicator is going to be right at forecasting that short-term strength or weakness.

And lastly here, you’ll see that you’ll have a shadow bar. So the next trading day that hasn’t yet occurred, you have a separate neural network to pick out the predicted high and the predicted low. And that’s going to help you with intraday trade management and knowing, Hey, where should I set my limit orders? Where should I potentially take some short-term profits? And you can see that we have a shadow candle here, but what’s going to happen is the actual data is going to fill that space. But we can see how accurate all of these predictions are. And you’ll notice that early on in this market where it starts to shift, you see that, okay, well, you have a day where the market moves lower here.

And this is really the huge key here with VantagePoint, is that it is an adaptive tool. It understands how the markets are shifting and changing. It looks at those intermarket relationships and then does a very good job of adapting and creating those future price predictions. So you see, again, it has that predicted high and low slanting lower over these trading days, letting you know that, Hey, look, there’s some weakness over the next 48 hours, but the blue line is still above the black line. The overall trend is up. And certainly, you see that you don’t want to be short that market. The overall trend certainly is up, and things are aggressively moving higher.

Again, you can move a little bit outside the range here, but you get your tools, again, coming into play and saying, look, if you want to be a buyer, try to buy down at these predicted lows. And within pretty much 48 hours, that market is moving to the upside again and putting those positions in profit here. So again, a really nice opportunity here where you got a 25 plus percent move here just over the past couple of weeks. It’s just 11 training days, a couple of weeks on the calendar there.

Avalon Bay(AVB)

Avalon Bay, similar situation. And this is just what I want to highlight with the help of the Intelli-Scan. When you’re running through these things on a daily basis, you start to see, Hey, where are opportunities opening up? Where are those trends starting to shift so that you can get involved in the opportunity early. Once this gap comes through, you’ve pretty much missed a big part of that move and the profitability there. But you see this coming through about four days early and letting you know that, all right, well, if you want to be a buyer here, well, intraday, if you’re really trying to hone in on that entry price and get the best price possible, we’ve got two levels down here, the lower part of the range before this market really starts to explode and move higher.

Avalon Bay

So we see overall here, we’ve gotten a really nice push higher here. But again, I’d be very careful out there in the marketplace. And what’s very important is when you get these early entries in markets, it allows you to trail stops. And so, if the trend continues in that blue line reigns above the black line, well, you’re still involved in a nice trading opportunity, but getting involved so that you can really limit your risk, right? Once you’re involved in that trade and the market continues to move, you want to understand, Hey, should I hold onto that position? Should I try to get some cheaper prices over the next 48 hours or so, with the help of that neural index forecast.

Wynn Resorts(WYNN)

Here Wynn Resorts, very similar situation. And you see how much of the market here is correlated. We get this crossover to the upside, neural index very bullish, but then some [inaudible 00:09:05] comes in and says, Hey, expect some weakness over the next couple of trading days, but the overall trend is still up. So you want to be able to do that trade management, come in with the help of your predicted high and low ranges. And again, you see here where even after this trading day, where not a lot happens. Look at the slope of this prediction for the next trading day. It’s saying, expect these cheaper prices to come in at the very least on an intraday level and over that next 48 hours, but the overall trend is up. And then you see this other opportunity here, where you’re actually getting filled at the open. Shoot up towards the predicted high. Again, only wanting to be long. Take profits on longs makes the most sense when we have this predicted moving average well above that actual moving average.

WYNN Resorts

Baker Hughes (BKR)

Baker Hughes, we looked at last week and really quickly here, I just wanted to highlight how we can look at a market and then look into the minutia of, okay, well, if that’s the market you’re going to trade, where would you be looking to take a position? And you see that actually last week when the Hot Stocks Outlook was made here, you have the market moving down towards those predicted lows, and the trend is still up. It’s a great place to go ahead and get involved. You have the market at about 17, shooting up above $19 per share. So this is one of the areas where the energy space is already moving. And over the past couple of weeks, we saw a lot of those markets move higher, but here you’ve got a 41% rally to the upside. If we go ahead and drag this over, just over the past week, another 9% advance there. And that’s even after this big move lower. So you were up 13% just over the past week there at a certain point.

Baker Hughes

Helmerich & Payne (HP)

Here in H&P same thing, very similar to PBF last week. We saw a lot of these energy shares start to move higher. You’ll see your neural index getting bearish here and saying, okay, well, expect some weakness over the next 48 hours, but look, the trend is up. You want to be a buyer down at these predicted lows if anything, if you’re looking to get a nice entry in the market. And these are actually great, these days where if you understand that you want to be long, you’re not going to get it perfectly right every time with these predicted highs and lows. But when you have an order waiting there, you get filled at the open. So oftentimes, you get an excellent price. You see the market that day’s not really doing much, but that’s where you want to take this position, because the next day the market is gaping up, and things start to accelerate to the upside once again. So a really nice opportunity here.

Helmerich and Payne

Again, a lot of those energy stocks, great opportunities to get some entries here. Things are really beaten down, and that’s often when they can reverse pretty aggressively. See over 3% rally here, just over the past 13 trading days. So again, just two and a half weeks of trading, market aggressively higher there in a lot of those energy companies.

Alcoa(AA)

Lastly, Alcoa here, just serves as another good example here of a lot of the basic materials as a whole. And in addition to those energy companies that we just looked at, blue line crosses over black line here, and a very clearly look, if you want to be a buyer, you’ve got those daily levels coming in that say, look, be patient. Wait to get to or near those predicted lows, are the best places to go ahead and get involved. So you can really limit that intraday risk and really overall risk, as far as the type of trade that you’re looking to take here. Once again, 38% rally in the past 11 trading days.

ALCOA

Once again, really what’s helpful is, utilizing these predictive tools, but also having the scanning capability and being able to scan with not just traditional technical analysis, but have forward-looking predictive tools and be able to sort through all of that data. And so, when you have all these different stocks and all these different commodities, things moving around, you want an accurate tool. But then you can apply that tool to a wide swath of markets and really understand where exactly those opportunities are opening up. Where are the, like I say, opportunities and also the risks within different sectors, and therefore, individual markets throughout the marketplace.

So once again, this has been our Hot Stocks Outlook for November 20th, 2020. Thank you all for watching. Best of luck and bye for now.