Hot Stocks Outlook for the Week of
September 18th, 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 Electronic Arts (EA), B&G Foods (BGS), MarineMax(HZO), Caesar’s Entertainment (CZR), Dick’s Sporting Goods (DKS)
This Week’s Hot Stocks Outlook
Hello again, traders and welcome back to the Hot Stocks Outlook for September 18th, 2020. Hope you 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 start with shares of Electronic Arts. We’ve got B&G Foods, MarineMax, and then we’re going to shift to Caesars, which we looked at last week, and we’ll end on Dick’s Sporting Goods.
So starting out here, especially with these first three markets, good example of what we’ve seen broadly across the market, I’m going to show you how you get ahead of that.
So starting with shares of EA. What we have here is daily price action. So every single candle here represents a full and complete trading day, and what you see right up against that price data, is a black line and also a blue line.
Now the black line that you see there that is a regular, simple moving average, or what we refer to as the actual simple moving average. It’s a very common technical indicator and it looks at past closed prices, adds all of those closed prices together, and then divides by a certain number.
And that’s a good technical indicator, but really just to tell you where market prices have already been. It gets dragged around by the most recent price action, and that’s really how we want to use it, is understand where market price has been, but we need more insight than that. We need to understand where our market price is going, moving forward.
And so what we’re able to do is compare that black line or that black value on the chart to this blue value. And for that calculation, for that number to be generated each and every trading day, Vantage Point is utilized in the technology of artificial neural networks to look at and understand intermarket relationships. So what’s happening in other markets and how it’s known to drive and influence and impact the future price of this target market. So specifically, EA.
So, that can be things like the S&P 500 futures. That could be things like global currencies, like the dollar index. That could be individual ETF groups, or individual stocks. Global interest rates, futures and commodity markets.
And it’s looking at how those markets are influencing future price, and what it does here is it takes the summary of all of those relationships, and especially understanding which ones are more significant than other ones, and it weights them and actually generates future price predictions. So things to the right of the chart that haven’t yet occurred, and then it’s taking those future predictions, and actually building it into the value of this moving average.
So what was a lagging indicator that just looks at where market prices have been, turns into a forward looking predictive tool that’s weighted by that predictive data generated via that technology.
And so whenever that blue line crosses below the black line, it’s suggesting that average prices or the overall trend is likely to move lower. Now, that’s not the only indicator that’s generated via this technology.
If you look at the bottom of the chart, you’ll see that you have this line that goes from red to green, back to red, and this is an extremely accurate indicator, but it’s only looking ahead 48 hours at a time. So it’s not looking at the overall trend direction. It’s looking at short term strength or weakness in the market over those next 48 hours, and of course it’s updating each and every trading day as well.
To round out really the entirety of that forecast, you’re also given a predicted high and predicted low for the next trading day. So you’ve got the overall trend direction, short term strength or weakness over the next 48 hours, and a specific predicted high and predicted low also derived via that neural network technology.
And so you’ve got this really entire forecast that says, okay, well, where should I look for opportunities? What should I expect over the next 48 hours? And what price levels should I be looking to get into to make sure that I’m getting a good price?
And so, as long as that blue line remains below the black line in this case, it’s suggesting that average prices are going to remain moving lower, but we can actually look at how accurate those predicted highs and lows are for each trading day.
And you’ll see that, especially on days like this are great, where if you have a limit order waiting at those predicted highs, you get filled at the open and you see that there’s no buyers that are immediately trading lower.
Again here, you want to be shorting the market because you see the market’s going to close up towards this high, but then the trend is going to continue. See the neural index down at the bottom, it goes bullish. You get more sideways action trading up towards these predicted highs.
But what you want is a good measure that’s going to keep you on the right side of market prices, and what’s been significant over the past couple of weeks is we’ve seen a lot of markets look exactly like EA, including things like the S&P 500 futures, and that really forewarns of some generalized market weakness. It makes sense to go ahead and add some short positions to your portfolio, or take some profit on some longs here.
So we’ve got Electronic Arts down 11%, just over the past 13 trading days and just this market, as well as B&G Foods and MarineMax, and plenty of others, have come through this intelliSCAN feature, which really identifies fresh trading opportunities via these predictive indicators.
So when you’re looking for, okay, well, has the market shifted? Well, when you scan hundreds if not thousands of individual stocks, you’re going to see that the market’s starting to turn lower and then identify specifically where the conditions are best to go and actually potentially take a short position and benefit off market weakness.
Here’s B&G Foods. Again, very similar situation. You get that crossover to the downside. You see the neural index quite bearish here over the entirety of the past couple of weeks. But again, you can use the help of that predicted high and low range to say, okay, well, if this is a market that I want to participate in, where should I be trying to get involved? Where should I be accepting prices?
And what that does, it allows you to capture the entirety of the move. So getting in at a great price to capture more of the move on a trend, but also allows you to risk less as far as shorter term opportunities or potentially adding to an existing position here.
So we see shares of B&G Foods having again, a pretty aggressive decline just over the past few days, but you’ve seen that there’s a lot of separation still between that blue line and the black line. This market is still in a downtrend and it’s moved down 14% so far, just over the last eight trading days.
But think about the opportunity that says, okay, well, if you understand the market’s turning lower, get that short position up above $30 a share, and you can trail your stops down with that market, or potentially again, add to that position as the market trades lower.
Another similar opportunity here at MarineMax, and the reason that all these opportunities are similar is because we’ve seen the S&P move lower. So when you run that intelliSCAN, and a couple of weeks ago, you start to see that, okay, well, I ran my scan to the bullish side. Then I ran it to the bearish side, and you just see literally hundreds and hundreds of markets coming through with fresh crossovers to the downside and signaling that things are freshly down here.
So MarineMax moved into to a downtrend and it stayed in that downtrend. It’s not producing bullish crossovers that are identifying areas that you should be taking long positions here.
So here with MarineMax, again, crossover to the downside. You see the neural index here, you’ll get days where it’ll move up to a green configuration, but remember that’s a very short term forecast, it’s only 48 hours, and it’s highlighting short-term strength or weakness.
How I like to think of it is as some higher highs over the next trading day, but as long as that blue line remains below the black line, and you actually see a lot of separation between that predicted moving average and the actual, suggesting that this is a very strong trend to the downside.
So again, we can say, okay, well, how accurate were those predicted highs and lows for the actual market data before the market occurred? And some really great entries in a downtrend. You’ve got four out of five days before this market really starts to move, pushing up against that predicted high, then almost immediately, trading lower.
You see, the predicted lows also intraday doing a good job of selling. Where is that marketing going to top out? Where can you take some short term profits along the way here? And again, you see just bouncing across these predicted high levels, but the overall trend remaining strongly to the downside here.
So we can look at this move so far, again really nice move over the past few weeks here. Shares off over 23%, just in the past 16 trading days. And again, you’ve seen, there’s been a shift in the marketplace, and you want to be very careful as far as where you identify places to actually take long positions.
One of the areas that we talked about that was performing well and has allowed you to have a really nice entry into the market and potentially trail those stops, are a lot of the things that you’d actually expect to not do well. Casino stocks, airline stocks, theme parks, all of those things that were really affected pretty dramatically recently.
But here’s Caesars Entertainment, and this is something we looked at last week, and we can see that going through the next week. Well, what have we seen? We’re not seeing a crossover to the downside in this market. This still has that blue line above the black line. You see a lot of strength from the neural index coming into the week and getting another push higher here. And this market has been pretty unaffected by the overall market weakness and actually performed very well over the past few days as it makes a nice advancement off $50 to $60 per share.
So again, we can take a look at over the duration of this trade, if this is a place where you say, okay, well, this is where I want to trade. You get an updated forecast each and every trading day, and this is really one of the great benefits of the artificial neural networks is their ability to adapt to changing market situations.
So what happens is the day trades, it looks at those intermarket relationships, and then plots these predicted highs and lows based on not only what’s changing in this market, but what’s changing in those other markets.
And you see that days like this, where we get a big pull back, we obviously had a big advance, but we got a big pullback. But see how quickly those predicted highs and lows really get back on track. So you can continue trading that market and really making the most of that opportunity.
So if you’re able to get in at the beginning of the trade, plenty of opportunities along the way to add to that existing position. And we see shares up here up over 50%, just in the past 28 trading days here. And again, just over the past week here, when we brought this through, market’s up another, over 10% pop there in the market from last week.
Here’s Dick’s Sporting Goods, and what’s been interesting is a lot of these stocks that sells shoes actually. You look at Foot Locker, Dick’s Sporting Goods, Wolverine Worldwide. A lot of these things, Shoe Carnival is another. A lot of these things are actually in uptrends, and if persisted moving higher.
So you see, we have this crossover to the upside, blue line over the black line. Really nice levels from our predicted highs and lows here. You see each predicted low, you tap up against it, but you definitely don’t want to be short in this market.
And we see that market really starting to advance, even with all this volatility and this huge gap, the software does a good job of getting back on track and understanding, okay, well, how has that volatility shifted things? Where should I be looking to enter into that position, or potentially add to that position as the market continues higher here?
So really nice move here in shares of Dick’s Sporting Goods. But I wanted to bring in of course, a mix of bearish opportunities as well as bullish, but this is really the bigger relationship that we’ve seen play out in the market is that weakness with the S&P 500 really going back a couple of weeks ago.
And the intelliSCAN is really what brings that to the forefront and really makes it really quite apparent that look, something shifted in the marketplace. Because when you can add a tool like this with these predictive indicators, like we have here with Vantage Point, but then you apply it across the aggregate. So a large number of individual stocks that you can scan through, you get those signals earlier, and that’s really the benefit of Vantage Point is to have a tool that’s forward-looking so that you get in before the move really starts to advance.
And once that volatility is coming in and the market’s moving two, three percent a day, you’re really behind the trait and it affects really the risk reward each and every day that you’re getting in, and potentially late on that opportunity certainly is not going to be in your favor. And we want to recognize, again, these things as soon as possible.
And that’s where this predictive technology comes in and works extremely well when we apply that to a wide swath of markets and really cycle through that in a very process driven way in identifying new opportunities with a really strict process.
The scan, just you keep it the same every single day, identify those important shifts and have a tool that really gives you that entire roadmap as the trade progresses of, is this still a trade that you should be participating in? Where are the predicted high and low ranges moving? So that you can make the best of those opportunities.
So, once again, this has been our Hot Stocks Outlook for September 18th, 2020. Thank you all for watching. Best of luck out there and bye for now.