Hot Stocks Outlook for the Week of
October 2nd, 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 Campbell’s Soup Company, AngioDynamics, Walt Disney, Avis Rent-A-Car, Nordstroms
This Week’s Hot Stocks Outlook
Hello again, traders and welcome back to the Hot Stocks Outlook for October 2, 2020. Hope you’re all having a excellent week out there in the financial markets, and as always, plenty to cover in this week’s outlook. So we’re going to go ahead and we’ll start out with shares of Campbell Soup Company here. We also have AngioDynamics, Walt Disney, Avis, and Nordstrom really round out… some we really need to be aware about what the market currently what’s going on.
But starting with Campbell Soup here, really good example of how this software works, regardless of the type of trader that you are. So if we go ahead and take a look at Campbell Soup here, what we have is daily price action. So each one of these candlesticks represents a full and complete trading day, and right up against that price data, you see that there is a black line and also a blue line. In every single chart, if you’re trading commodity, Forex markets or individual stocks works exactly the same way.
And what we have with that black and blue line is that black line is actually a regular simple moving average. So a very common technical indicator. And what we really use that for is to measure where market prices have been, because the real weakness of really any moving average is that it’s looking at only past price data. And it’s also only looking at the past close prices of the market in question. So in this case, Campbell Soup. So what happens is moving averages tend to get dragged around by the most recent price action and lose track of the bigger picture of what’s going on.
And so what we’re able to do is take that black value on the chart of that simple moving average and compare that to this blue value that gets generated each and every trading day. And for that value to be generated, it’s very important to understand that VantagePoint is utilizing the technology of artificial neural networks, but we’ve applied that technology to really looking at interrelated markets, so what’s called intermarket analysis, and how other markets are known to drive and influence Campbell Soup’s future prices. So that can be things like ETF groups that take whole sectors of the market and group them together and have an effect on how individual stocks may move. That can be other individual stocks. That can be futures and commodity markets like the S&P 500. That can be oil, agricultural markets, global currencies, global interest rates. And it understands how these markets, whether they be positive relationships, inverse correlations, leading, or lagging relationships affect future prices.
And so what ends up happening is those neural networks look at all those relationships and actually generate future price predictions. So things that have not yet occurred, future price of where things are going, and it takes those predictions and actually builds them into the value of that blue line or that predicted moving average, turning what was a lagging indicator into a forward looking predictive tool.
Now whenever we see that blue line cross below the black line, it suggests average prices are going to start moving lower. Again, this is a predicted moving average. Really works good as measuring the overall trend direction in a market. Now in addition to that predicted moving average, you’ll see at the bottom of the chart, you’ll have this indicator that can go from green to a red back to green and red. This indicator is also utilizing that neural network technology, but tuned to really only look ahead 48 hours at a time. And what it’s actually predicting includes really volatility in a lot of ways, like higher highs or lower lows over the next couple of days within that 48 hour window.
So it’s a good measure of very short term strength or weakness in the market, and then to really round out the forecast… and this is where everything comes together, as far as some shorter term trading and really entering positions for potentially longer swing trades and things like that… but is this predicted high and low range, so every single trading day, you get a new prediction for the daily high and daily low. So you’ve got intraday, you’ve got 48 hours and you’ve got your overall trend direction with a highly accurate and more likely to generate a significant signal with that predicted moving average.
So what we have here is you see that this blue line crosses below the black line. We’d want to go ahead and use VantagePoint’s predicted highs and lows. And what I’m showing you here is all of those predictions against the actual market data. So you see that we have a shadow candle here that will be filled by an actual candle, and we’ll see how accurate that forecast was. But you see that when going short, you get some really great entries at the early part of this move to get short. The market starts to go sideways. You see this neural index start to get bullish here. And so you recognize that, okay, well, there’s some strength coming into the market. And then we get that reversal, as well, with the market actually getting that crossover to the upside and really signaling to you that look, down at these predicted lows is not a good place to be short the market and what ends up happening, we end up going higher and that trend moving.
So not a huge move here, but a good forecast as far as how the software works on a daily basis to help you understand, okay, well, Campbell Soup before it goes in that 12, 13% down move, get those short positions. Buy some put options, whatever instrument you want to use. Same thing on the upside. When we move to the upside, if you want to go ahead and get long, be looking towards those daily predicted lows. And we see so far for the last couple of weeks here getting a 5, 6% rally over the past seven trading days. So very important stuff, and can really help you refine any sort of trading technique that you may have.
Now there’s some really phenomenal opportunities out there where as long as this blue line remains above the black line, it’s often a good idea to hold on to that position. Maybe take some profits along the way at these daily predicted highs and lows, but generally the software is doing a great job at forecasting trend and trend direction. And so what we have here with AngioDynamics is this crossover to the upside, blue line over black line, neural index very bullish over this time period. And we can point out things like this. You see the neural index, it goes bearish for one trading day here. And what happens is this indicator at the bottom is accurate, well over 80% accuracy, upwards of 87, 88% accuracy at that short-term strength or weakness over that next 48 hour window.
So when you have an extremely accurate short-term tool and you can pair that with a longer term objective of what your expectations are for the market, this can really help you manage and make the most of that opportunity, whether it’s adding to an existing position or just getting an excellent entry on an intraday move.
So again, we can take a look at those predicted highs and lows, and you see here that we had a really close to that predicted low. Some traders like to just buy it the lower half of this range, but also just leaving limit orders and things like that down at the predicted low levels. And what’s interesting is as far as using this technology over the long term, you recognize that often down at these predicted lows, you got to have a limit order waiting. There’s not enough volume down there at those exceptional prices, and the market quickly moves lower and then resumes trend. And you really want to make sure that you’re taking action at those levels in some way. You see how we move towards the predicted high. We trade off at those levels, but the overall trend is up. And this is what you really don’t want to miss out on is obviously that colossal move as the overall trend breaks out.
But you just see all the strength forecasted here from VantagePoints. And look, this is a very strong trend, that blue line is well above the black line. And that’s how you’re going to benefit from these intermarket relationships and realize that, okay, well here I got a strong thing working for me, but also those short-term forecasts to help guide that trading decision. So you see shares up just in the past 10 days over 30%. If you had 500 shares there, which is a tiny position in a stock like this, that’s $1,400, easily a few thousand shares you could have there, make a $5,000, $6,000 or so.
Here in shares of Walt Disney. And this is what we really need to be paying attention to broadly in the market. And you’re able to see this actually through the help of VantagePoint has this IntelliScan feature. And what that allows us to do as traders is really sort the market however we want. We can see how many markets are in longer term downtrends. We can see for the nightly basis what fresh crossovers and trends have potentially begun. And we’ve seen some general weakness out there. It’s not the same as it was going back really… we got a pivot about a few weeks ago, and that’s really where things turned on a Thursday, really about a few weeks ago. And a lot of stocks haven’t recovered. We’ve seen downtrend, retracement and then continue of downtrend, like Walt Disney here. So we see here that we have this crossover to the downside, neural index very bearish. You get a couple of blips up here with the neural index, but overall just huge amount of separation between that predicted moving average and the actual moving average.
And of course, we can take a look at those intraday levels. So from here on saying, look, you know what you want to be doing in this market. It’s short positions and only take profit on your short positions. We still see that blue line or that predicted moving average, as far as the overall trend, still looking quite bearish with short-term neural index bearish, as well. So shares off a little over 7%, probably getting filled a little higher here around 8%, but 15 days you had the market for Disney shares off 8% in 500 shares there. 100 shares has you up over $1,000. So pretty nice move there in very important stocks. And again, we’re seeing like you look at Microsoft, you look at some of the bigger stuff. There’s some questions out there and the software is doing a good job of identifying the places where you can take those shots to the upside, but really places also to completely avoid.
Here’s Avis Budget Rent-A-Car. We see very similar back in September, getting that crossover to the downside. That’s again where the S&P and the broader markets made a rough move lower over a couple day period. And some of these things haven’t recovered. So we see here with Avis has crossover to the downside. We can look at those predicted highs and low ranges and see how accurate really these forecasts are on a daily basis.
And what I really love about the software is really its ability to adapt. And when you get volatility coming into the market and a day where you may become way outside of the predicted high and low range, the software does a really good job of looking at those intermarket relationships, sort of gauging over that intraday and 48 hour window of what you need to expect. And that’s going to help you manage opportunities, hold onto your positions longer and make sure that you’re involved with some of these big moves that we highlight in the Hot Stocks Outlook here.
So here we have Avis Budget group down 24% in 15 trading days. So very clear opportunity on the short side there over the past couple of weeks. 500 shares has you up about $4,200. And lastly, here Nordstrom, very similar situation. September 9th and 10th here, a bunch of crossovers coming through to the downside. You see your neural index here getting bullish, and that’s where you’re getting retracement of trend and some sideways action. So strength within the downtrend, but the overall trend still again, very much to the short side. And of course, when we get that volatility at the early part, we want to say, okay, well, where’s the best intraday level in here to look to try to get short. And you see that hitting that predicted high on that trading day there, pretty much the highest point of the five days where you get that retracement and sideways, and then that overall trend resumes to the downside.
So overall shares here, we can see from that trading day, off pretty good here. And the trend looking actually very, very bearish here. So shares off 21% just in the past 11 trading days, again. 500 shares there, which is not a huge position at all, has you up over $1,600. So really nice moves. There’s a lot of interesting shifts going on in the marketplace and we’re seeing it in commodity pricing, the global indices and some clues out there from the software that things are not completely bullish out there, especially in some of these important areas of the marketplace. But that doesn’t mean there’s no opportunities out there. Like we saw with AngioDynamics here, very clear crossover and forecast, and that market having a really nice advance over the past 10 trading days.
So once again, traders have a great rest of your week. This has been our Hot Stocks Outlook for October 2, 2020. Thank you all for watching. Best of luck and bye for now.