Hot Stocks Outlook for the Week of
September 4th, 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 Docusign (DOCU), LiveNation (LYV), Salesforce (CRM)ShakeShack (SHAK), Twitter (TWTR) and Nvidia (NVDA)
This Week’s Hot Stocks Outlook
Hello again, traders, and welcome back to the Hot Stocks Outlook for September 4th, 2020. Hope you’re all having an excellent week out in the financial markets and, as always, plenty of opportunities to cover here. We’re going to start with shares of DocuSign. We’ve also got Live Nation, Salesforce, Shake Shack, Twitter, and NVIDIA, so really a lot to get through in this week’s outlook. But starting out with shares of DocuSign. Really good example of how all of the tools work here on an individual stock. But like last week, we look at the S&P 500 futures. It really works the same way, whether you’re looking at a futures, or commodity market currency pair, or an individual stock.
So with shares of DocuSign, what we have is daily candles. So each one of these candles represents a full and complete trading day with the high, the low, the open, and the close. And you’ll see right up against that the daily price action. Now see, there’s a black line and also a blue line there. Now, the black line that you see on the chart that, on every single chart, is a simple moving average. So it’s a very common technical indicator, and it acts as a really good measure of where market prices have been over a given period of time. It smooths out all that data, gives you that rolling, moving average.
But of course, as traders, we need to understand, well, where are prices going moving forward? So we can be ahead of that move. So what we want to compare that value, the black line on the chart. We want to compare that to this blue value that’s generated each and every trading day. And for this to be calculated, VantagePoint is doing what’s called intermarket analysis. It’s looking at how interrelated markets, so markets that are known to drive and influence, specifically DocuSign, are affecting the future prices of this market.
So that can be things like the S&P 500 futures. That can be individual ETF markets, individual stocks, global currencies, global interest rates. And it’s looking at really a few dozen markets and how all of those relationships are being bullish or bearish against the stock, how some of those have leading or lagging relationships as far as affecting the future price of DocuSign. And it actually uses the technology of artificial neural networks to generate future price predictions, so prices that haven’t yet occurred, and it builds those predictions into the value of this moving average. So rather than having a lagging simple moving average that only is being dragged around by the most recent price action, you have a predicted moving average, which is actually forward-looking and weighted by that data derived via that neural network process. So whenever that blue line crosses above the black line, it’s suggesting that average prices are expected to move higher as far as the overall trend here.
Now, in addition to that predicted moving average, which is giving you the overall trend direction, you’ll notice that there’s a little bar at the bottom of the screen that goes from green to red. And that gets updated as well, all the way towards the right of the chart. And what it’s doing is actually predicting 48 hours ahead, strength or weakness over that short-term, 48 hour period. And that’s very important. So you get this measure of short-term strength or weakness within the overall trend direction. And lastly, if you look, you see you have a shadow candle. So again, what those neural networks are actually doing are picking out actual intraday high and low prices. So you have a good intraday measure of where should you place limit orders, profit targets. And again, the entirety of your forecast is really derived via these three indicators that predicted moving average, the neural index here at the bottom of the chart, and the predicted high and predicted low that are updated each and every trading day.
So we see with shares of DocuSign, we have this crossover suggesting prices are going to start moving higher. You’ll see the neural index, that it gets bearish over this period of time, and you get some lower lows over the next 48 hour period. But important understand that this indicator at the bottom, as well, is accurate upwards of 80 plus percent over really all the markets. It’s accurate as high as 86, 87%. And that’s what’s going to give you that consistency. Where you understand that, okay, well, it’s not going to get it right every single time, but essentially four out of five times, you’re going to know when that strength or weakness is very likely to occur, and we can put that in the context of our other predictive indicators. So we can take a quick look at those predicted highs and lows, and you actually see how accurate each of these predicted lows is.
So even before you get this dip in the market, that predicted high and low is slanted lower, letting you know that, hey, there’s some weakness here over these 48 hours, a weaker predicted high and low forecasted, and really be aware, so that you’re not sacrificing your position. You understand what’s going on and that the overall trend is very much still to the upside. So we can see that over the course of this move, we’ve gotten a nice pop recently in the market. And again, seeing all that strength from the S&P last week leading to a very strong day this week. But here we have a 27% rally, and that’s just over the last 11 trading days. Again, a 500 share position, has you up almost $30,000 here.
Now here are shares of Live Nation. We actually saw a lot of the stocks, really like the entertainment stocks, Six Flags, Live Nation, here. A lot of those things that really got beat down over the past several months, actually moving into an uptrend and doing quite well. So you see this crossover to the upside all the way at the beginning of August here. A couple of periods here where that neural index is going down to that red configuration, but that blue line remaining above the black line is saying, look, the overall trend is still very much to the upside. Getting a really nice pop in the share price and seeing these shares move up, let’s see, a little over 20% in just the past 20 trading days. So again, a 500 share position up about $5,000 there. And again, we can see those predicted high and low values that are coming through.
You’re not going to hit the predicted low every single day. Sometimes you spend one day moving down to the predicted low. The next day’s price action continues higher with a trend, but where the real benefit of this technology is found is in its adaptive abilities. So understanding that, okay, well, if those other markets are moving in particular ways and those neural networks can really hone in on how they’re affecting this target market, you get really good forecasts of where prices are moving next. And there’s going to be those days where you move well outside the range. And usually, that’s going to be a move in the direction of the trend, but you see how the volatility is really caught up for within the next trading day. And you understand how those things really come back together and act as a good guy that say, okay, well, what has now happened in the market? How has that changed things moving forward? And then have a good forecast and representation of where things are expected to move in the short term moving forward. So again, shares up over 20% in the past 20 trading days.
Shares of Salesforce here. So a lot of the tech stocks obviously doing very well. Salesforce here, very straightforward forecast. Crossover to the upside, tons of strength from the neural index, and all you really would want to be doing here is just be a buyer. We have the S&P getting stronger. You want to look for individual stocks that are in strong uptrends, and you see getting a really nice pop in the market in shares of Salesforce. And over the course of this move, again, we’ve got 36% rally just in the past 11 days. So again, 500 shares, even just 100 shares there, has you up several thousand dollars.
Shares of Shake Shack, again, finding markets that, hey, if the S&P is moving higher. If overall, stocks are doing well. Look for individual stocks that are in strong uptrends. Where you have a lot of distance between that blue and the black line, and target in on those markets with the help of the shorter term forecasting tool. So those predicted highs and lows to let you know, okay, well, if I’m trying to take a position here on Shake Shack, where is a good intraday level to get involved so that you don’t have to really run a huge stop loss? You can see how the market responds to that level and say okay, well, stick with this market. Maybe lock in stop to break even, and get involved with that existing uptrend here.
So a really nice move, of course, in shares of Shake Shack. A couple more opportunities here, but Shake Shack here up over 30% in and just 17 trading days. So almost anywhere you look, you find these markets that are in uptrends, you understand how strong the S&P 500 futures are. How strong the different sectors are and all the ETFs and individual stocks, and then you can really pinpoint in and target, well, where do you want to trade and get involved here?
Here are shares of Twitter. Crossover all the way at the beginning of August. You get these periods of time here, and the neural index goes bearish, you run a little bit sideways, but that blue line still very much above the black line. You actually see a lot of separation over the entirety of this move. And of course, those predicted highs and lows are going to really help you with, okay, well, if I’m actually trying to take a position here, where should I have some limit orders, potentially just waiting in the market, that if we get a little blip down to those levels, you’re going to get your order filled and be involved in that up move? So once again, seeing prices, more recently, make a really large move higher, but of course, you want to recognize that that trend is starting to move up back here at the beginning of August so that you’re making money and really catching the full move on those big up days. So shares up over 17% in the past 19 trading days. Again, 500 shares has you up over $3,000.
And lastly, here, I just wanted to highlight a very important stock that had a lot of news come out recently. But here’s a forecast all the way from March. So when the market’s recovered after that sell-off in February, you’ve seen that the longer-term forecast in NVIDIA has this market just in pretty much a straight uptrend over what’s now been about six months of calendar time here. And of course, over that entirety of that period, you understand that, look, here’s a stock that’s in a strong uptrend. You can, of course, use those predicted highs and lows, and we can bring those up, and know you want to be a buyer down at these predicted low levels. And that’s really the place where you can go ahead, stake out a position, as long as that blue line remains above the black line, you’ve got a market in a very strong, persistent trend, and don’t get out of the way. Really the big key is we can identify trades where the market’s likely to move up, but the last thing you want to be doing is getting out of the move too early and only making 5, 10, 15% when there’s potentially 130% rally here.
Certainly over a longer period of time, but very clearly that that trend has remained in an uptrend. And very recently, really a lot of strength in this trend is things break out and move a little bit higher. So again, 500 shares here. A little bit pricey of a stock, but 100 shares, heck, 50 shares is going to make you what? About $16,000 here in a move like this. So a really nice opportunity and shares of NVIDIA. Of course, options, sort of the same thing, if you’re buying call options. But when that market actually starts going into an uptrend, you really want to recognize these opportunities early and make sure that you hang with them. As long as that trend resumes and that predicted moving average stays well above the actual moving average, you’ve really got something that you should be holding onto.
So once again, this has been our Hot Stocks Outlook for September 4th, 2020. Thank you all for watching, best of luck, and bye for now.