Hot Stocks Outlook for the Week of

October 16th, 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 Square, Scott’s Miracle-Gro, Deckers Outdoor, Etsy, GoPro

Register for a Free Live Training

 

This Week’s Hot Stocks Outlook

Hello again, traders and welcome back to the Hot Stocks Outlook for October 16th, 2020. Hope y’all are having an excellent week out in the financial markets and as always plenty to cover in this week’s outlook. So we’re going to go ahead and start out with shares of Square. We’ve also got Scotts Miracle-Gro Decker Outdoor Etsy, and lastly GoPro. So starting here with shares of Square, a really good example of how all of these tools work and they really work off of end of day data.

Square

So when we actually look at each one of these trading candles that represents a full and complete trading day and what we have right up against that price data, you’ll see that there is a black line and also a blue line there. Now the black line that you see there, very important understand that that is a regular, simple moving average or what we refer to as the actual simple moving average. And that’s a very common technical indicator in that it looks back at the previous price closes, adds maybe 10 of those together if you had a 10-day moving average, then divide by 10 and all that data that goes into generating that black line on the chart is really lagging information, right?

Square

It’s just the close price, it gets plotted along and really dragged around by the most recent close price. And so that’s a good technical indicator to let us know where market prices may have been over a given period of time. But traders obviously need to understand where prices actually moving going forward, right? So we can be ahead of those moves in the market. So what we have right up against that black line, that value on the chart that you see there is this blue line. And so for that value to be calculated and generated each and every trading day VantagePoint is performing what’s called intermarket analysis and it’s utilizing the specific technology of artificial neural networks do that. So I can show you a little bit of that.

Now, if we go ahead and look at specifically Square stock, we can go in and actually look at, well, what are those what we’d call intermarkets, right? Those markets that are known to drive and influence and affect the target market of Square. So this acts as a good graphic to really help you understand this concept that it’s going to be looking at things like tech ETFs, it’s going to be looking at things like the S&P 500, Light Sweet Crude Oil, the gold market, Euro global currencies and interest rates. But it’s also going to find some of those subtle relationships in individual stocks that aren’t going to be obvious by just looking at the chart.

And there’s some extremely valuable information feed derived via these intermarket relationships, whether they be leading relationships, lagging relationships, positive or inverse correlations. And what that analysis and technology is used to do is look at those relationships and actually generate future price predictions. So things to the right of the chart that haven’t yet occurred yet and it’s taking actually those predictions and building them into the value of this moving average. Turning what was a lagging indicator that just looks at the past into a forward-looking predictive tool.

And so what this does is really give us an early lead time and indication into trend reversals and shifts in the market. So whenever that blue line or blue value in this case crosses above the black line, it’s suggesting average prices are going to start moving higher and you’d therefore want to take a long position. Now at the bottom of the chart though, you also see this bar that goes from green to red, back to green, and that as well, every single trading day is updating and what that is, is a very short-term forecast, again, using that neural network technology, but only looking ahead 48 hours.

And if you actually look closely into this, what this is looking at is actually in some ways higher highs and lower lows over that next 48-hour window. And the predicted moving average is letting us know that overall trend. So very short-term strength or weakness in the market, again, via that neural network process. But what you have here is a tool that’s tuned to look ahead that specific period of 48 hours, a very short-term and update every single day. And really to round out the entirety of these VantagePoint forecasts is an actual intraday predicted high and predicted low trading bar.

So again, you can see this technology applied to future price where things are likely to play. And then what’s going to happen is the actual trading day is going to fill this predicted high and low projection and we’ll be able to see how accurate. Now in shares a Square, you see that we get this crossover going back to really the midpoint in September saying, “Look, the overall trend is up. Look for this market to move higher.” And what we can do is actually look at those predictions of the intraday or daily highs and lows against the actual price data.

So if I go ahead hit a button on my keyboard here, you’ll see that here comes as crossover coming through and you see immediately after the market closes here, VantagePoint is doing that analysis as far as forecasting future price. And you actually see at predicted high and low range for the next trade and they come lower and say expect some weakness over the next trading day. You see, we come a little bit out of the range and look what happens here as these predicted high and low levels keep adjusting each and every trading day.

Again, this information known the day before the market opens at 9:30 Eastern time. And so you have this tool that says, “Look, the overall trend is up. Use this daily predicted low as a good measure of where you should be accepting price levels and also potentially a place to take some profit targets.” So on the upside where intraday is a good level to go ahead and take some profit and look to buyback at lower prices. But you see just multiple entries here, as far as the uptrend, plenty of areas to go ahead and take profit. And you’ve seen more recently here as this market’s really started to move over the past.

Well, you can see this whole period here is about three weeks at least or so almost a completely bullish forecast, neural index bullish, the overall trend bullish is telling you, “Look, this is an area of the market where you really want to go ahead and take out a long position and make some money on the bullish side here.” So overall, like we always do, take a look at … 19 trading days, this market’s up over 30%, but multiple areas in there to be buying at the predicted low, targeting the predicted high and really capturing even more than that 30% as you’re adding into the position as that overall trend continues.

So as we look at Square, it’s the exact same approach it’s just understanding the timeframe of the tools of these predictive indicators and then going in and saying, “Okay, well what is my overall trading strategy? What am I going for? What’s the timeframe that I trade with?” Then okay, well, we’ve got this crossover to the upside, neural index in that bullish configuration. And what this actually allows us to do is actually run a scan so that we can look at these predictive indicators and find those fresh signals as they come through and understand what markets are potentially spots where we need to be paying attention.

Scott’s Miracle-Gro

So here we have Scotts Miracle-Gro. Again, that crossover coming through. You see that neural index gets bearish here, again, forecasting lower lows over the next 48 hours. Sometimes what I like to do is think, “Okay, well, if that neural index is bearish in this case, expect the market to trade below the predicted average.” You’re going to trade above and below that average, but expect that weakness. Good area to go ahead and look too to add to a position as long as that uptrend remains to the upside and you see how effective some of those entries are as far as, “Look, I know I want to be long. There’s some weakness here,” but if you’re going to be buying on the dip, where intraday is a good level to do that. And you see shares really start to take off there. Getting another level here, a nice entry, then that market moves higher towards subsequent predicted highs.

Scotts Miracle-Gro

We look at five or six forecasts a week here, but it’s really comes down to each and every day, you’re getting that information as far as the predicted high and low, how to adjust that overall position. You see shares up over about 10% over the last 11 trading days here two weeks a time there, shares up over 10% and you see a lot of separation between that blue and black line neural index and everything looking good there. Moving on Decker Outdoors. So a lot of markets we had really last month of almost four or five weeks ago, we had that dip lower in the market. A lot of things turn lower, but there’s been a lot of these areas that are still in uptrends.

Deckers Outdoor

And very recently as well, over the past couple of weeks, certainly areas where VantagePoint is forecasting some strength and areas to get long and make money to the upside, here in Decker Outdoors, same thing. We have this crossover to the upside early in, well, mid November. And you’ll see how this neural index works. You get this weakness over the next 48 hours, a little bit of a pullback consolidation in the market, but the overall trend is still to the upside. And so you got to remember that this neural index accurate upwards of 80%, actually up about 87% accurate over that 48-hour window.

Deckers Outdoor

So you have the overall trend direction, a very accurate tool to let you know when those retracements are likely to come through and not get kicked out of the position, and stick with your overall game plan for what you’re trying to do there. So you see shares up over 25% in the past 23 trading days or 24% in the past 23 trading days. 500 shares has you up about $25,000 there. And very clear, you see that blue line remaining above the black line saying the trend is up, use then the neural index predicted highs and lows to do that short-term trade management now that you have that directional bias on the market.

Etsy

Here’s shares of Etsy in a similar situation. So when you run that scan in the software, you tend to see, “Okay, well, where are those areas that the whole market starting to turn higher?” Things like Square, Etsy, GoPro, all these things doing quite well. A lot of the tech stuff doing pretty well over this period as well. Shares of Etsy, this crossover, the upside, again, you see the neural index doing its job here and saying, “Okay, there may be some weakness over the next couple of days, “but that blue line is still well above the black line. The trend is still to the upside. So we can look at intraday. How are you looking to manage this thing? Well, if you’re trying to buy the market, you want to buy down towards these predicted highs or predicted lows would be the good intraday level.

ETSY

Days like this you’ll end up getting filled at the open. And then you see immediately moving up to the subsequent predicted highs over and over again, getting that good forecast to guide you on how you want to manage that opportunity potentially adding to an existing position. So when you have those unrealized gains, but you can lock in stops, you’re maybe able to build a really nice position. And if that trend continues, you see shares up here were 30% last 16 trading days. And 500 shares there up about $17,000 really end things here for the day, but here we have GoPro. And all these charts are very, very similar, but you see that it really comes down to you may recognize the trend is moving higher, but how are you managing that opportunity over the duration?

And that’s where the short-term forecasts from VantagePoint of being able to look at those intermarket relationships, how are things shifting? How are those predicted high and low ranges likely to be adjusted over the next 48 hours? So that you’re managing the position really to the best ability as you can. Build the largest position, don’t have to run huge stops and still build that up so that can be a very profitable move.

GoPro

Here are shares of GoPro, same thing, crossover to the upside, couple of blips with the neural index here. But overall, a lot of strength here as far as trend and the overall trend direction, as well as the neural index, the predicted high and low ranges.

We can see here, just keep moving higher and higher as far as that predicted low each and every trading day. And you see how many entries there are here earlier in the move to say, “Look, if you want to get a position here, intraday, these are the best prices to do it.” You’re not going to hit that level every day, but then things can really break out. And as long as that blue line, again, remains above the black line, you have an opportunity to be in a very strong trend. And that’s where if you can build a position, lock in stops, trail those stops you get into something like this.

GoPro

Shares up over 71% in just the past 19 trading days. I mean, easily there buying a few thousand shares. Here only 500 shares has you have about $1500. So really nice move there in a very cheap stock going from $4 up to seven in just about a few weeks here. So again, really great opportunities out here, but the big thing that I just really want to highlight with this video is the managing of the opportunities. And when you recognize that, “Okay, markets are doing something, let’s go ahead and get involved to have that directional bias on the market.”

And then regardless of where you’re trading and you have that good roadmap that says, “Okay, well where do I even want to come in as a shorter term trader?” So I don’t have to run those huge stop-losses and huge amount of risk and recognize that, “Hey, I’m in something, it’s working. Let’s make the most of that opportunity.” So once again, this has been our Hot Stocks Outlook for October 16th, 2020. Thank you all for watching. Best of luck out there and bye for now.