Hot Stocks Outlook for the Week of November 22, 2019
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 Centene (CNC), Humana (HUM) Ironwood Pharmaceuticals (IRWD), CRISPR Therapeutics (CRSP), Walt Disney (DIS) and Harley-Davidson (HOG)
This Week’s Hot Stocks Outlook
Hello traders and welcome back to the hot stocks outlook for November 22nd, 2019. I hope you all are having an excellent week out in the financial markets and as always, plenty to cover in this week’s outlook. Really going to be continuing on with many of the themes that we’ve been highlighting over the past couple of months here. Healthcare and biotech stocks doing extremely well, so we brought in United Healthcare several weeks ago. Here’s Centene, Humana, we’ll take a look at that. We’ve got Ironwood Pharmaceuticals, CRISPR Therapeutics, and we’re also going to take a look here at Harley Davidson and Walt Disney.
But starting here really in the healthcare space and shares of Centene. One of the great things about VantagePoint is that it’s going to alert you to the areas of the market, the sectors that you should really be focused on because these predictive indicators are going to be ahead, but they’re going to be ahead on all the similar markets are going to look very similar. When we look at shares of Centene, what we have here is the daily price action. Each one of these candles represents a full and complete trading day. You’ll see that there is a black line against the price data and also a blue line.
Now the black line that you see there, that is a regular simple moving average. And we can really think of that as a baseline, really a good barometer of where have prices been in the past? But of course, as traders, we need to know where are prices moving going forward so that we can get ahead of a big move in the marketplace or a trend reversal. What VantagePoint’s able to do to generate this blue value that you see on the chart and also all of these predictive indicators at the bottom and you see this early shadow candle, we’ll go ahead and get to that.
But to generate these predictive indicators, VantagePoint is utilizing artificial intelligence, specifically neural networks to look at other related markets and how they drive and influence the target market that you’re trading. Whenever we’re looking at a target market, that individual market has its own unique set of Intermarket. For healthcare stock, this can be obvious in things like ETFs within the healthcare sector. This can be other ETF or other healthcare stocks like United Healthcare. But important things like the S&P 500, the NASDAQ, the dollar index, interest rates. And one of the great benefits of artificial intelligence and specifically these neural networks is they can find a lot of the hidden patterns and correlations that you simply wouldn’t have the amount of time to deal with all of this data and you wouldn’t be able to find those significant relationships, which can sometimes lead and lag certain markets before you see a big move or reversal and therefore the target market.
Looking at the whole of what’s going on under the hood here, we can say, “Okay, well if this predicted moving average is saying that average prices are going to start moving higher in shares of Centene and also Humana and United Healthcare, all at the same time and he’s coming through and saying, focus on this area of the marketplace.” Now in addition to that predicted moving average, which really works great when you run it on an aggregate of a ton of stocks and use it to identify opportunities, but you also have these predictive indicators. At the bottom of the chart you see this green can go back to a red, green. This is a highly accurate 48-hour indicator, so you have to understand it’s only tuned to look a couple candles ahead and how we can really think about it as short term strength or weakness in the marketplace.
We’ve got the overall trend or the average price is expected to go higher or lower. Short term as far as 48 hours just two candles, short-term strength or weakness, are they’re going to be some higher highs or lower lows over the next couple of trading days? And lastly, you’re actually provided with every single day before the trading day, a predicted high and predicted low. An intraday level that you can have limits waiting to pick up your order. And also profit targets for shorter-term traders. When we go ahead and look at this as a whole, and also we’ll do this very quickly with Humana here, you say, “Okay, well look at these predicted highs and lows. When it comes to this individual market, how are you going to be trading it and managing the opportunity?”
Well, you see that every time this market gets down to these predicted lows, when we’re in an uptrend, it doesn’t take very long before this market is moving higher, finding new highs and usually you’re going to break through those predicted highs when you have a market that’s in an uptrend. You see when you get those big breaks, they’re on the upside as we have a very strong move as far as that predicted moving average. Well above the actual moving average saying average prices are excessively ahead of where they’ve been in the past here. Really nice moves again, United Healthcare doing the exact same thing here. But we see these trends continuing and even if you came in over the past couple of weeks here, there are multiple areas where you’re buying at predicted lows and participating in that move. A 36% rally in a healthcare stock.
You don’t need to trade penny stocks and things like that to identify some extremely profitable moves, $15 per share on something that was trading down at 42, 43 or so. I’m not sure exactly where we’re at here.
But let’s go ahead take a look at Humana. And so what you’re going to see is that these crossovers came through again. That first couple of weeks in October here’s Humana here. Exact the same thing. When you have two healthcare stocks with very clean crossovers to the upside, neural index up at a one, it’s saying, “Hey, pay attention here. Something’s going on. You can start participating in a new trading opportunity.” And you see a very similar picture where these predicted lows coming in every single day these are updated. Again, if it’s regardless of your trading style, where you’re coming in, shorter-term, longer-term, you understand, look, I’ve got a roadmap for the timeframe that I’m dealing with and you can understand clearly the trend direction. You see that neural index saying, “Look these subsequent 48 hours, trading days, you only had three days within the past two months that it was even down at a red configuration.”
And all that saying is short term weakness, short term weakness, short term weakness. Very high level of accuracy linked to this indicator. And that’s what you can really use to, how I really look at is it lets you know when you want to be heavier on a position and when you should expect lower prices. But if you have a directional bias, it makes it very easy to say, “Okay, well if we get some weakness here, got orders waiting at that predicted low and ready to add back in.” Another 29% rally here in Humana.
Now the stuff that really moves, these pharmaceutical stocks, these biotech stocks. Here’s Ironwood Pharmaceuticals. We see this crossover to the upside, neural index up at a one and you’ll have these periods where you see the neural index go zero and or how I like to look at this is if you have an accurate view of the predicted moving average moving forward, that’s what this blue line is looking at, is forward-looking. What is the average price is moving forward? And that neural index goes down to a red, I call it a one or a zero, but it can be a bullish or bearish configuration. Well, when it goes down to that bearish view, it’s only looking ahead 48 hours. You see that, yeah, you can get this weakness, a little bit of a gap down here. You’re trading below the average, below that predicted moving average, but overall the trend very much to the upside and you want to remain certainly on the long side of the market and only be adding to that position when you’re at something like a predicted low. A good intraday level that’s provided from the software here.
Again, we see that all of these levels getting hit and immediately your market’s moving higher. These trends really taking off, and again, just healthcare, biotech, there are so many opportunities here that are just breaking out to the upside and seeing more and more gains. And so if we look at this over the course, I think we brought this in really at the end of October. Again, if you’re coming in over just this past month, buy opportunity on this trading day, on this trading day, on this trading day, hitting those predicted high targets, being able to take profit, buy some more, take profit, try to buy at lower levels, makes it very straightforward on what should you be doing day to day, 37% rally just in the past 28 trading days. $3 per share on a market that you’re getting in about 8.80, 8.90 and this thing now pushing up against $12 per share.
CRISPR Therapeutics, so another one of these biotech stocks. Again, it’s just this whole, October’s been very clear, pay attention to this sector. It’s doing extremely well. Crossover to the upside. You see this neural index, you get a little bit of a dip here, but the blue line still remains above the black line over the course of this entire move. And you think it is really amping up here. But look how much strength is being forecasted from the software. It’s saying, “Look, every subsequent 48 hour period, expect higher prices, expect the trend to continue.” And these are really the things that can really do really well as far as your equity. When you recognize that, hey, there’s some big waves coming in and also understand, don’t get out of the way. Look, the trend is still up. You don’t want to get out of the way before you see that 30% move in healthcare stocks and a 75% move in CRISPR therapeutics here.
Now obviously Ironwood as well. These 20, 30% moves all across the space, all across the sector. There’s plenty of things to go ahead and be buying. And when we start seeing those crossovers move to the downside and the S&P start to roll over, sure we can get short, but it’s looking pretty strong here and you want to trail those stops and make the most of these opportunities.
Now here’s Harley Davidson. Last week we looked at Etsy shares and they’ve just been really a disaster, not the place you want to be and not the place to be making money. Well, here’s Harley Davidson. You see crossovers to the downside here coming into November and saying, “Look, this is not the place where you want to be long.” This neural index you’ll see we’ll get bullish and you’ll run sideways, run to the bullish side of that average, but you clearly want to be targeting predicted highs to set short positions or maybe even by some put options. There’s a lot of different instruments one can use to express this idea, but you want to be in line with these forecasts of understanding that look, these are absolutely choice levels to add to your position.
This is where you can get involved in the trend and as long as that continues, you see a lot of opportunity as these things really start to move and you can of course trail your stops with the market using those predicted high and low levels to understand, hey, where’s price likely to trade? Let’s make sure that we’re adding more positions, not having stopped in the wrong place and things like that. But huge move here in Harley Davidson. And again clearly highlighting these places where you don’t want to belong in the market and it’s been pretty straightforward. The healthcare stuff looks really good if you’re running these scans each and every night within the software, you’re just seeing at the right times these things come in through and saying, “Look, if you want to be long, it’s very clear of where those opportunities are.”
About a 10% decline here in shares of Harley Davidson. Not looking great, but Walt Disney recently, we get this crossover to the upside, neural index up at a one. And what I really want you to focus on is course we’ve got these big moves that have come through really all over the marketplace. A lot of stocks are moving straight up and sharing that S&P correlation and strength, but just how accurate these short term forecasts are. To understand that, look, the trend is up. You may see some weakness over the next couple of trading days. You see that you’re going to see volatility when you get sort of that conflict, but you’ve got the guidance each and every day. As more data comes in from these Intermarket relationships, these tools are adjusting and adapting and always looking forward to let you know what’s expected over the next few trading days.
Again, great opportunities to get involved. You see, even before this big run-up, very clearly saying, “Look, there’s a lot of strength here. If you’re down at that predicted low, that’s a great intraday level and a really nice pop there in shares of Disney.” Again, we take a look at this move a little bit more recent. We’ve had again, early October, mid-October is where all this stuff started kicking off. All the S&P started moving higher, but 12% here just in shares of Disney in the last three weeks of trading, 14 trading days, and not even three weeks of time. Just fantastic opportunities, but it really comes down to how do you manage those opportunities, get the most out of them, limit your risk and your downside, but still open yourself up to the tremendous opportunities that we’re seeing all around the marketplace?
Once again, this has been our hot stocks outlook for November 22nd, 2019 thank you all for watching. Best of luck and bye for now.