Hot Stocks Outlook for the Week of
September 25th, 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 Harley-Davidson (HOG), Goldman-Sachs(GS), OfficeDepot (ODP), Walt Disney(DIS), Zoom Communications (ZM)
This Week’s Hot Stocks Outlook
Hello again, traders and welcome back to the Hot Stocks Outlook for September 25th, 2020. Hope you are all having a great week out in the financial markets and as always, plenty to cover in our outlook here. So we’re going to start out with shares of Harley Davidson. We’ve got Goldman Sachs, Office Depot, Walt Disney, and lastly Zoom video communication. So a lot of different things, a very wide swath of markets as far as different sectors and this is very important to what’s going on in the underlying equity space. When we look at the S and P, we’ve really seen a pivot. We talked a little bit about that over the past couple of weeks, and plenty of these stocks having very similar types of moves here.
So when we look at Harley Davidson, what we have here is daily price action. So each one of those candles represents a full and complete trading day. All of these forecasts work off of end of day data and right up against that price data, you’ll notice that there is a black line there and also a blue line. Now, very important to understand that what these two lines are, is the black line there is a regular simple moving average, and that’s a very common technical indicator. The problem with tools like that is that they only have the ability to look at what’s already happened in the past. So they really end up getting dragged around by the most recent price action. And really as traders, we need to understand, okay, well, where are prices moving going forward? How can we be ahead of this move that’s coming into the market? So that acts as a very good measure of where market prices have been, but we need to know where things are moving next.
And so what we want to do is actually compare that black value, or that simple moving average, to this blue value. And so for that value to be calculated from that blue line there, vantage point is doing what’s called intermarket analysis. It’s looking at important market relationships that provide clues into where the market is likely to move next. And so when looking for shares of Harley Davidson, what it’s able to do is look at markets that are known to drive influence and effect Harley Davidson moving forward. So that’s going to be big, important things like the S and P $500, dollar index, global currencies, major futures and commodity markets. That’s going to be ETFs. That’s going to be individual stocks.
And so what it’s able to do is understand those relationships, some of them positive correlation, some of them inverse correlation, some of those leading and lagging relationships, and it takes all of that data and actually summarize it into future price predictions. So things that have not yet occurred, and then those future predictions are taken and actually built into the value of this moving average. So rather than having an average that just looks back at where market prices have been and gets dragged around by where prices have moved more recently, this is a forward-looking aspect to it and is able to adapt and help us identify trend reversals in the market much earlier.
So what we have here with Harley Davidson is we see this blue line crossing below the black line, but I’m going to go ahead and explain a couple of other indicators here that will help us work through these other four charts here. Now, there’s that crossover between the blue and the black line, but at the very bottom of the screen, you’ll see that there’s this bar that can go from green to red and this also updates every single trading day. And what it’s doing is actually providing a extremely accurate forecast, again, 80 plus percent accuracy with this indicator, of whether they’re short-term strength or weakness over the next 48 hours. So just a couple of trading days at a time. So you have the overall trend direction, short-term strength or weakness, and to really round this forecast out, you have intraday levels provided for you before every trading day as well.
So any predicted high, any predicted low, and what will happen here is we’re actually seeing the actual prediction. That red line is the predicted high for all of those trading days before they occurred. Same thing with the black line for the predicted low. And what will happen is we’ll have a candle fill this in and see how accurate that prediction is for the day. But what you see here is once that blue line crosses below the black line, really says, okay, well, now the trend is down. Look for opportunities to go ahead and take a short position. And of course, what helped is looking at the distance as well, between that prediction of the moving average and the actual moving average, and definitely forecast the strength of the trend. Of course, along with that neural index, a short term strength or weakness.
We see in this case, it just stays down and we’ve had pretty much down days, day after day for the past couple of weeks here in Harley Davidson, but some really fantastic entries here. So you see that pivot in the market back here telling you the trend is now down, but intraday, you really need to get the best price possible as traders. That’s obviously very critical to getting the best part of the move and getting the best return on our trade.
So as we go ahead and look at this opportunity here, Harley Davidson, just since that last predicted high hit, this market is down 18% just in the past seven trading days. So not even two weeks here on the calendar. If you shorted 500 shares, you’re up about 25, $2,600 in profit and that trend still very aggressively to the downside.
Moving on to some financial stocks. So here’s Goldman Sachs and what I really want to highlight here is we have tools in the software, notably the Intellus scan feature, and what that allows traders to do is scan through all of the different individual stocks, all the different sectors and identify that, hey, there’s been a very big shift, not just in technology stocks or not just in financials, but stocks all over the market. We looked at actually two weeks Thursday ago was when that S and P started to move lower and very quickly you got that signal that all of these things were starting to start moving lower. And therefore the shorts have made a lot more sense here over the past couple of weeks.
When we look here at Goldman Sachs, we see that crossover to the downside. You’ll notice that with the neural index, we have a little bit of a different example here, here we go up to a green configuration. And what that’s telling you is short-term strength over the next couple of trading days. And why that’s important is this indicator is actually looking at aspect that looks at the highs and the closes and the lows for the next trading day. So it lets you know that there’s likely to be some higher highs coming through over the next couple of trading days, but the overall trend is still very much down so that you can be prepared to say, hey, I really shouldn’t be too surprised if market prices want to move up towards these predicted high levels.
And you see, I always like to look at the last two predicted highs because some days you trade immediately lower, but then the next day you kick back up to where that previous high was, but still you see that you get those bounces in the market, but the trend still very much to the downside. You want to remain short, move a little bit lower here, bouncing off of these predicted lows, hitting predicted highs and a good guide every single day of what should I be doing in the market? How do I essentially measure volatility from my trades? Know what a good intraday level to get involved in, and then go ahead and execute that strategy on the market.
And so with Goldman Sachs here, not a huge move compared to Harley Davidson and some of these smaller stocks, but you’re still having almost a 10% decline here in shares of Goldman just over the past 10 trading days. So very clear that, look, there’s cheaper prices to be had. Get out of the way here. Maybe even go short and make some money to the downside. You see 500 shares up over $9,000 here.
Moving on to Office Depot, and it’s exactly the same, whether you’re trading Office Depot or Goldman Sachs or Harley Davidson, it really doesn’t matter. The forecast work the same way, and here you see just a huge separation right at that crossover point. And so almost immediately, very strong movement to the downside as far as the overall trend forecast. But you’ll see here that neural index goes bullish. You’re getting some higher highs within that next 48 hour period. Same thing here, some higher highs, but the overall trend is down. And this doesn’t mean, go and take a long position. Just says, expect that upside over the next 48 hours, deal with that volatility as a strength comes in, but remain short the market here.
And so a big, big drop here more recently here in Office Depot. We see about a 15, 16% move to the downside. And of course, we can go ahead, take a look at those predicted highs and lows. And again, see that once you recognize that trend is down, extremely accurate levels to make trading decisions from you. See one, two, three, four, five, six opportunities here, and you see right here, excellent data gets short and then that market trading much, much lower there, but you want that guidance again to say, okay, well, where should I be getting in? Where if I’m a shorter-term trader, should I potentially look to take profit on the downside? And if you’re a trend trader, you understand, hold on to that position, because the last thing you want to do is miss the really big move in a market because you got out of the move too early.
Here in shares of Walt Disney, same sort of thing here. Crossover to the downside here, and these predicted high levels doing really good job at letting you, look to take these short positions. There’s no reason to be long in the market in shares of Disney. There’s a lot of these big, important stocks we’ve seen pivot to the downside. I mentioned this last week that when you run this Intellus scan and you’re able to every single night find where the new opportunities are opening up, which markets are starting to turn up or turn lower. It really sounds those alarm bells, as far as look, there’s some serious weakness out there. And therefore, if you’re trading S and P 500 futures, it gives you a lot of information about the makeup of those indices and where markets are likely to move.
So you see here, shares off about eight and a half percent. Again, 500 share position. Maybe you want to sell some options up there at 135 or so, but great opportunity to go ahead and exploit the short side of that market.
And lastly, here we do have things that are actually working to the upside. And here you see, we have Zoom video, crossover the upside. Going back a couple months here, and you see that you never get a crossover to the downside here highlighting that this market’s going to go into a downtrend like the rest of the market. You actually see a lot of strength here. You have a neural index bearish here. You’re on a little sideways there, more of a pullback here within the uptrend, and obviously, a lot of volatility breaking out there, but the overall trend is up. You want to be as a trader, looking towards these predicted lows as potential places to get involved in the market.
And as long as that blue line remains above the black line, you want to stay with that position. And you see, especially on days like this are great, when you come into the market and say, hey, look, I know I want to belong here. I’m just going to set a limit order and you end up getting filled at the open here. Obviously, a lot of volatility here. You’re going to get these situations where there’s huge breakouts and then a lot of volatility, but what’s really important about vantage point is its ability to adapt. And even when you have huge swings in the market, you see how quickly things get right back online, as far as those daily predicted high and low forecast.
So again, really nice opportunities here to really hedge your portfolio, take some short positions and really make a lot of money on both sides of the market here. I know we haven’t looked at the entirety of this move, but Zoom has obviously been one of these stocks that just keeps moving higher. And you’ve got an 84% rally just in the past 26 trading days. Again, 500 shares there. I mean, even just 100 shares going to have you up over $20,000 there.
So really nice opportunities to take advantage of out there, but you got to have those consistent tools that are going to help you identify one, those big shifts in the macro environment, and then also things like the predicted highs and lows so that you can come in on an intraday basis, know the best levels to be paying attention to and get filled in your position. So have a great rest of the trading week, everyone. Once again, this has been our Hot Stocks Outlook for September 25th, 2020. Thanks again, and bye for now.