Hot Stocks Outlook for the Week of

October 30th, 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 First Solar (FSLR), United Therapeutics (UTHR), Brown Forman (BF/B), AMD (AMD) and Apache (APA)

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 30th, 2020. Hope you’re all having an excellent week out in the financial markets and, as always, plenty to cover in today’s outlook. So we’ll start out with shares of First Solar. We also have United Therapeutics, Brown-Forman, AMD, and lastly, Apache shares.

First Solar (FSLR)

So starting out here with shares of First Solar, and really all these subsequent charts and and what we have here is daily price action. So each one of those candles represents a full and complete trading Dave at the high, low open-close. And right up against that daily price action, you’ll see that there is a black line and also a blue line. So it’s very important to understand the difference between these two values.

Now, the black line that you see on the chart, that is actually a simple moving average, so it’s a very common technical indicator. And simple moving averages are great because they summarize the price data, give us an idea of the overall trend and where market prices have been. But the problem with moving averages is that all of the information is really based on past price data, so things that have already occurred in the market, and then price sort of drags that moving average around. But it acts as a good measure of where market prices have been. But of course, we need to understand where are things moving next. And so, what we’re able to do here with vantage point is actually compare that value on the chart, that black line, to this blue line, that vantage point is generating through its technological approach to predicting future price.

First Solar (FSLR)

Now, what we have here is this blue line is what’s called a predicted moving average. And for that value to be calculated each and every trading day, the vantagepoint moving average is performing what’s called Intermarket analysis and it’s utilizing the technology of artificial neural networks to do that. So what does that mean? Well, it means that rather than just looking at past price and plotting along where market price has been, Vantagepoint is going to use its technology specifically for First Solar and understanding how other markets are driving and influencing the future price of First Solar.

So that’s going to be big, important markets like the S&P 500, the NASDAQ, that’s going to be global currencies like the dollar, global interest rates, ETF groups, but it’s going to be able to also find relationships between similar stocks. So whether that’s stocks in the same sector, and also markets that don’t appear very obvious, but they’ve been found to have a significant relationship in affecting the future price of this target market, in this case First Solar.

So what happens there is the technology is looking at all those Intermarket relationships and how they’re driving and influencing the target market and utilizing that information to actually generate price predictions. So off to the right of the chart, things that truly haven’t yet occurred at all, and it’s utilizing those predictions and building them into the value of this predicted moving average, turning what was a lagging indicator that just gets pulled around by past price data into a forward-looking predictive tool.

Now, in the same way that that predicted moving average is forecasting future average prices moving forward, at the very bottom of the chart, you’ll see that there’s another indicator, goes from green to red, and this updates every single trading day, and what it’s doing is actually forecasting two trading days ahead. So actually 48 hours, or you can think of that as a couple of candles on the chart of short-term strength or weakness, so that neural network process is tuned to really focus on that 48 hour forecast and that short term strength or weakness.

And lastly, again, also these neural networks, what they’re doing in this case, these are tuned to actually forecast predicted highs and lows. So actually intraday for the next trading day, where are market price is expected to move, going to be extremely helpful for setting limit orders or profit targets for your trades. And so what we have here in First Solar is whenever we get that blue line crossing above the black line, we expect average prices to start moving higher, and you’d therefore want to use the other predictive tools, your neural index, as well as those predicted highs and lows, to manage that trade as it progresses.

And as long as that blue line remains above the black line, the trend is still up. And what we can do here is actually look and see how accurate all of those predictions are. So we can see from the night that the crossover comes through, we get about a 42% rally in the past 22 trading days and shares and First Solar. But if we take a closer look and actually look at, okay, well, every single day that you might’ve been in this trade, where was vantage point saying as far as the next day, intraday predicted high or low is a level that you should add to your position, or maybe that’s the first point you’re getting involved in the trade. You kind of want to pair this with your trading strategy and timeframe and what you’re doing.

But you see, you’re not going to hit that predicted low every day. Sometimes that trend is going to move up and prices are just going to continue higher, but you see how many opportunities in here to get excellent entries into this market. We’ve got one, two, three, four, five, six, seven entries where within about 24/48 hours, you’re already trading higher and continuing on with that 40 plus percent move in shares the First Solar. So again, as long as that blue line remains above the black line, that’s letting you know, the overall trend in this case is still up, and the last thing you want to do as a trader is jump off a trade too soon and miss 42% rally, right? So a really nice move here.

And another thing that you’ll notice as we go through these charts is the neural index does a really good job of letting you know when that sideways action or weakness may come into the market. So you see here that neural index is very bullish and the market’s in a very strong uptrend. Neural index goes bearish around here, and you start to see things go sideways. But that blue line is still saying, “Look, the overall trend is up. If you’re a trend trader, look to buy down at these predicted lows,” and you see things moving higher at once again there.

So with that same approach, we can look at other markets.

United Therapeutics (UTHR)

So here’s United Therapeutics. It’s the exact same approach. It’s blue line crossing above the black line. And we actually have a really great feature inside of vantage point that allows you to scan for new opportunities. So you see this in tele-scan, and we can open up really a new scan just to quickly highlight this feature here. But you’re able to drag in whatever markets you’re trading, whether it’s stocks, forex pairs, futures markets, and actually identify new opportunities based on fresh crossovers from that predicted moving average, also the neural index, and many other predictive indicators.

United Therapeutics (UTHR)

So rather than scanning for things looking at, okay, well, where have signals been generated in things that have already occurred, getting dragged around by past price, you have a forward-looking predictive tool to say, “Okay, well, what is my trading strategy? What’s my overall approach and timeframe?” And pair the predictive indicators to that trading approach here. But here on shares with United therapeutics, very similar situation where that blue line crosses above the black line, and we can see how accurate those predicted highs and lows are over the course of this trade.

So you see that a huge move as shares move higher. Let’s see, overall, this moves up about 29%. but early on in this opportunity, look how many chances to go ahead and buy. And you see how many times you’re going to see this, where you got one this day, here the market trade’s a little bit lower and closes lower, but immediately trades higher the next day. But look at these opportunities where the market’s hitting that predicted low, closing within the range, and then that overall trend is taking off and things moving higher. So really nice move here, about a 29, almost 30% move in just the past 20 trading days. So just about a month on the calendar there.

Brown Forman (BF/B)

Brown-Forman, now, this is where things get interesting. We’ve seen a lot of volatility come into the marketplace and that’s highlighted some things that are doing really well, like First Solar and United Therapeutics and these uptrends, but there are certainly some areas where you want to understand that there’s danger in potential weakness. Here in Brown-Forman, I think this is actually a liquor distributor, but what we have here is a crossover to the downside, neural index bearish. And look at the middle of the chart. You see this neural index goes bullish again, forecasting short-term strength over the next 48 hours. And you’ll see this, especially in stocks.

Brown Forman (BF/B)

Well, what happens here? You actually get a gap up in the market trade a little bit higher, but blue line is still very much below the black line saying the overall trend is still down, and the last thing you’d want to be doing is getting along there. So look towards vantage points, in this case, predicted highs to inform you on intraday where’s this market likely to trade up to, to potentially set short positions. And you see about four entries there before the market really starts moving to the downside. And this is why things are so important to hold on to trend, because when things really start to get moving, you have those days where the S&P is opening up or down one or 2%, and things are really starting to move, well, you need to have that position on ahead of time.

And this is where vantage point does a great job in recognizing that, look, the trend has shifted. You need to go ahead and take on those positions, get a good intraday price, but hold on for that longer move so that when volatility and opportunity really starts creeping into the markets and things are moving around, you’ve already got those positions on to benefit as shares and volatility really accelerates. About a 9% decline there in shares of Brown-Forman.

AMD (AMD)

Really popular stock, a lot of news around AMD lately.

But as far as trading the stock goes, you see here from October 14th, crossover to the downside neural index bearish. Again, you see the effectiveness of that neural index saying, look, look for some short-term strength here. You get those higher highs coming through on volatility, but the overall trend still down, and the last thing you want to be doing is some of those buyers up there trying to chase the market, thinking things are moving higher when the overall trend is still down here and things need to continue lower. So once again, we can look at those predicted highs and lows and say, “Okay, well, if this is something we’re looking to trade, where are we looking to go ahead and take entries?” But in this case, only to the short side of the market.

AMD (AMD)

And you see here, even on this big retracement, if you’re selling over this period, a couple of days, probably getting a good average price there and things moving pretty aggressively lower over the past couple of days, but early on in the trend, it’s an excellent entry to go ahead and start shorting shares or to potentially take profit, right? AMD has had some really nice rallies, along with a lot of via semiconductor chip stocks and things like that. But you want understand, look, if you’re long here, where’s a good area to take some profit and look for cheaper prices to come in? And that’s exactly what we’re seeing there.

Apache (APA)

Lastly, we’ll end here on really an energy stock. And this is just very important where you’ve seen energies, especially the futures and commodities, really getting hammered and that’s affecting the individual stocks. And so, when you’re looking at those intermarket relationships, saying, “Okay, well, how am I going to benefit from those?” Well, a really simplistic way to understand this is shares like Apache. Well, what are they going to be driven by? Well, things like the S&P 500, things like oil, the value of the dollar. And so we have these tools to say, “Okay, well, if energies are weakening, how’s that affecting future shares of Apache?” And then you can come in and understand that, well, how are things being affected, not just in the longer term as far as trend, but the shorter term with these predicted highs and lows?

Apache (APA)

And so, you see how things just run sideways for a while here. Your neural index goes bullish and you get that sideways price action and some higher highs coming through over this time period. But very clearly, and what you see from these energy stocks, but also again, the commodities is this is a really bad time to belong in the energy space. And so when things start really accelerating, you see shares down 18% in the past 11 trading days. You really want to understand, okay, don’t be chasing any of these things, potentially short, the commodities, whether you trade futures contracts for oil or the energy stocks, you have a place to exploit that fundamental driver in the market that’s driving, not just the commodity, but individual stocks and in a way to profit off of that big macro economic move, that then trickles into the stocks and affects all of these areas of the market.

So once again, this has been our Hot Stocks Outlook for October 30th, 2020. Thank you all for watching out there. Best of luck and bye for now.