Hot Stocks Outlook for the Week of
October 25, 2019
The Hot Stocks Outlook uses VantagePoint’s market forecasts that are up to 86% accurate, demonstrating how traders can improve their timing and direction. In this week’s video, VantagePoint Software reviews forecasts for Icahn Enterprises(IEP), JetBlue Airways (JBLU), Louisiana-Pacific(LPX), and PDL BioPharma (PLDI)
This Week’s Hot Stocks Outlook
Good afternoon traders and welcome back to the hot stock’s outlook for October 25th, 2019. Hope you all are having a excellent week out in the financial markets, and as always, plenty of good things to cover in this week’s Hot Stocks Outlook.
We’re going to start here with Icahn Enterprises. We’ve got shares of JetBlue, Louisiana Pacific, and lastly PDL BioPharm. It’s actually an investment in biotech but is obviously going to be related to a lot of the biotech stocks and how they move. So starting here with Icahn though, what we’re looking at is daily price action. So you see that Icon Enterprises, we have daily candles right up against the price action, so each one of these candles represents a full and complete trading day. And against those daily bars, you see that there is a black line and also a blue line.”
Now, the black line that you see on the screen, that is a very common technical indicator, I’m sure you’ve seen it before. It’s what’s called a simple moving average. It’s a really good barometer of where average prices have been over a given period of time, but of course, as a trader, we need to understand where are prices headed next, and how can we get ahead of that move. And so to do that, what we want to compare that black line that you see on the chart is we want to compare it with this blue value that you see. For that blue line to be generated each and every night and updated, as you see, it really gets updated each and every day as the market moves forward. For that value to be calculated, VantagePoint is performing a very sophisticated type of analysis called Intermarket analysis, and it’s utilizing the technology of artificial neural networks to do it.
In the example of Icahn Enterprises, it’s looking at other related stocks, it’s looking at ETF groups, it’s looking at things like interest rates, indices futures, currencies. And it’s looking at all of those relationships and determining how they influence and affect the target market that you’re trying to trade. So in this example, a unique set of Intermarkets that are known to influence Icahn Enterprises. It uses that data to actually generate future prices that are then actually using that predictive data that’s generated by the technology, and it’s worked into the value of these indicators. Turning them from lagging indicators that are only going to show you where past prices have been into forward-looking indicators that are telling you where are prices moving next.
And so whenever we see that blue line cross above the black line, in this case, it’s suggesting average prices are going to start moving higher. As a trend trader, you want to go ahead and look to start getting long the market, or any sort of trader, you’d want to take long positions. Now, in addition to that predicted moving average, you see that we have an indicator at the very bottom of the screen that goes from green to red, back to green here. This is an extremely accurate indicator also derived via those neural network relationships, but it’s only looking ahead 48 hours a time. So you have to understand that this is very short term, two candles at a time, short term strength or weakness in the market.
So when you understand the overall trend direction, whether you want to be getting long or short, and also when some weakness may occur, how I like to really think of this is if I have an accurate view of what the average prices are, if my neural index goes down to that red configuration, I should expect prices to move below that average for the next trading day. And when it’s bullish, well, expect the market to drag that average higher and things to keep moving higher. So you see, in addition to that tool, you’ve got the overall trend direction, you’ve got short term strength or weakness. You’re also given a predicted high and low range each and every day. And what’s really great about this is we can look back and see exactly how accurate each one of those predicted highs and lows are.
So you understand you got the trend, short term strength or weakness, and actually intraday levels to buy and sell from, and that really rounds out the entirety of the VantagePoint forecasts. And every day what they’re going to do is update and guide you on how you should be trading that particular market. You see that over the course of these trades, you get these predicted levels coming through that are going to guide you of where stops can go, but really where you should be looking to add to your position, right? That you’re getting it at the predicted low, that’s a great intraday level to add to a position and manage your overall trade. Sometimes you’ll push higher because you’re in an uptrend, but you often come back and look to close actually near or below that predicted high or low level here.
So a really great opportunity here in shares of Icahn. Obviously the trend, still to the upside here, but we’ve got a pretty nice move so far, market up over 7% in just the past 12 trading days. So just a couple of weeks, we’ve seen a lot of strength come into the marketplace.
Moving onto shares of JetBlue, same thing. Crossover to the upside, neural index up at one, you see a lot of strength early on saying, “Look, get an entry into this market. As long as that blue line holds, you’ve got an existing uptrend in shares of JetBlue.” So you see, again, you get that neural index, for the most part, remains at that bullish green configuration. It’s accurate up to really about 80% accuracy, sometimes higher up to 86% accurate. But again, you understand, “Okay, well, I would only want to be taking long positions here, obviously.”
Use the benefit of my predicted highs and lows to manage the position, add to my position, take away if I’m a shorter-term trader who wants to take some profits. But you see a 13% rally to the upside here in shares of JetBlue in just the past two weeks. And not only that, multiple opportunities along the way to take some profits, add to your position. And regardless of your trading timeframe, you’re going to understand, okay, where are the better opportunities to come in on really any timeframe basis? Make sure you stick with that overall trend direction and get involved in that nice pop in the market. You see shares moving up pretty considerably here over the past couple of weeks, shares up over 13, almost 14% in just the past 10 trading days.
But you see multiple opportunities here where you can take some profit and be buying back at lower levels, so improving that overall average price you’re getting and making the most of that opportunity, really reducing the risk, right? When you’re taking profits along the way, but still staying involved so you can capture that upside.
When you’re taking profits along the way, but still staying involved so you can capture that upside. Louisiana Pacific here, crossover to the upside, about as straight forward as it gets here, right? Just a lot of strength coming through. No weakness at all to even expect cheaper prices, right? It just says, “Look, this is going up each and every day in the short term, and as far as a trend, you want to be a buyer.” Again, use the help of those predicted ranges.
When you’re in an uptrend, you obviously have that probability to move past these very short terms predicted high and low levels, but look what the market does each and every day. It moves past that level, and look where it closes, comes back below, here you close a little bit below. But look how you push past and then close right at that level. Push past, close, push past, close. Come down to this predicted low, and then the overall trend continues. So you get a lot of help with the guidance of these tools, and it really helps to at the end of the trading day, relax, download the new software and say, “Okay, well, what’s coming up? Where should I look to be adding to my position? Where can I look to take profit and manage that opportunity that you’ve identified?”
It’s really easy to identify these things because we have a scanning feature that identifies all these fresh crossovers when they come through. So you can set up a very easy process where you see these crossovers come through, identify where there’s new opportunities in the market, and when you see a lot of similar conditions across similar stocks or similar areas of the market, you know where to deploy that capital.
Now, what we want to do though is of course, where do we want to be buying a particular market? Well, at these predicted lows, and you see pretty much four excellent entries where almost immediately that market’s starting to move higher from those entry prices and just a really nice move here over the past, really, day. We got a huge pop in the stock, but the trend has been up pretty solidly here over the past 12 trading days. You see this market up 26% with, again, about three, four entries to get into that market before the big pop starts detecting higher.So again, another great opportunity there in shares of PDL BioPharm. Really cheap stock here, so you want to be careful, about 26% in just the past couple of weeks. Don’t need a huge position size to make a lot of money there.
Now, what I wanted to highlight really quickly here is just some of these scanning features and how they can help you identify new opportunities, right? And where we should be focused, and I can open up these couple of feeds here, open up a new Intelliscan. I’ve done this a couple of times over the past couple of weeks, but I can take in all of these stocks and just drag them right into that Intelliscan field, and you see we get all of these columns that apply to the predictive indicators that we’ve just highlighted via the charting here. What we’re able to do is very quickly sort through many of these columns. So for example, if we were looking for an area to short the market or defend some of our long positions, maybe we want to see, where’s that weakness? Where should we avoid taking long positions in the market?
Well, what we can do is actually there are some great features, and I actually wanted to highlight how we can actually include really helpful things. You see in this Intelliscan field, you can take a lot of these predictive indicators and really format them to fit your exact trading style. But what this really allows us to do as you can see, I can set this category here, and we can sort through things by sector. And that’s really important to identify where there’s that actual strength or weakness in the marketplace. So when we’re looking and trying to figure out, “Okay, well, where do we want to go ahead and get long? Where should we be looking for opportunities to maybe go ahead and short?” We can just open up our scans, identify, “Okay, directionally, what way do we want to be trading? What sector?
We can go through one by one and identify, “Okay, where is that strength or weakness in the market?” And identify new trading opportunities. So you see I’ve opened up a stock here, American Software, you see you are getting that fresh crossover to the downside. Also look at how early this neural index is warning you of short term weakness coming through, and how that confirmation of a new downtrend. And it’s really the same thing, whether you are going to the long side, like in these opportunities or looking for new short opportunities, and also when to go ahead and take profit, right? So when these opportunities are in an uptrend now, get that crossover to the downside. It’s going to be clear to say, “Okay, the trend is over. Let me go ahead and step out of the way and look for something else.”
So once again, this has been our Hot Stocks Outlook for October 25th, 2019. Thank you all for watching. Best of luck and bye for now.