Hot Stocks Outlook for the Week of January 24, 2020
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 McDonalds (MCD), Copart (CPRT), Tesla Motors (TSLA), Waste Management (WM), and Sprouts Farmers Market (SFM).
This Week’s Hot Stocks Outlook
Hello, again traders and welcome back to the Hot Stocks Outlook for January 24th, 2020. I hope you all are having an excellent week in the financial markets and as always, plenty of opportunities to cover in this week’s outlook. We’re going to start out here with shares of Copart. We’ve gotten McDonald’s, Tesla Motors, Waste Management, and lastly Sprouts Farmer’s Market here.
Starting here with shares of Copart, a really good example of how this technology works and what we have here is daily price action. Each one of these candles represents a full and complete trading day. All of the predictive technologies you see here work off of that end of day data and right up against that price data, you see that there is a black line and also a blue line. Now the black line that you see against the chart, that is actually a regular simple moving average or what we refer to as the actual simple moving average. And an indicator like that, all it does is actually look at the past prices of Copart, add 10 days together, add all those days together, it closes, divide by 10 and plots that moving average moving forward.Now the problem with that indicator is it really just tells you where prices have been over a given span of time but doesn’t tell you, okay, well where are prices expect to go moving forward? What we’re able to do here is compare that black value, that black line against the chart to this blue value. Now for this number essentially to be generated each and every trading day, VantagePoint is performing what’s called intermarket analysis. And it’s utilizing a technology of neural networks or artificial intelligence to do that. Instead of just looking at past prices of Copart, VantagePoint is able to understand how other markets are affecting and driving and influencing the future price of Copart. That can be things like individual stocks, that can be ETFs, that can be futures markets, currencies, interest rates, things like the broad indices like the S&P 500 and NASDAQ.And markets share very important relationships and what we’re able to do here is utilize that intermarket data to actually generate future data. Predicted data into the future that hasn’t yet occurred yet and actually build that into the value of these indicators. Thus making a lagging indicator that just tells you where prices have been in the past into a forward looking predictive indicator. Now, whenever that blue line crosses above the black line, it’s saying that, okay, well average prices are expected to move higher than where they’ve been in the past. If that blue line is above the black line, you can expect the trend to move higher, average prices to start moving up and therefore execute a trading style that’s in agreement with that. And therefore in this case, go ahead get long the market.Now in addition to that predicted moving average though we have a couple of other indicators, very important one here at the bottom you see that this bar can go from green to red, back to green. This is a extremely accurate indicator, well over 80% accurate in most cases. And what it’s doing is looking ahead 48 hours ahead, very short term and always adapting to that 48 hour timeframe, but letting you know about short term strength or weakness. And it’s actually able to predict a technical indicator again, 48 hours into the future with this 80% accuracy. When we go ahead and tie that in with our predicted moving average, we can then get a gauge of okay well if the short term strength is higher and the predicted moving average is now moving above, obviously a good sign that prices are going to continue moving higher, at least over the next couple of days.Now in addition to all of that, we actually at the very right hand side of the screen, you see that there’s a little shadow candle here and this actually provides a predicted high and low before each and every trading day. Actually at 6:00 PM the night before, before the next trading day at 9:30 AM Eastern time, you have a really trading range. An intraday level to know where you should look to go ahead and take positions again based on whatever your approach and style to the market is. You see here we get this blue line crossing above the black line, neural index with some strength and then you can go in and say, “Okay well let me use those predicted ranges to execute that directional bias on the market.” And you see how these ranges hold up.Now you will get some periods where you’re breaking past the range because we’re in an uptrend and VantagePoint is forecasting that strength. But overwhelmingly day after day, these predicted high and low ranges do a really excellent job of getting you a good entry into the market and then also having a short term level to go ahead and look to take some profits. And you see how, especially on days like this, you see these all the time where yeah, you dip below the predicted a little but look where you’re closing. On each and every one of these days coming all the way back to or above that predicted high or predicted low. And then the market moving higher over the next couple of trading days.We see a really nice move here in shares of Copart. Really nice entries at the very early part of the move here, but shares up over 12% just in the past 26 trading day here. Again, 500 shares, you’re up about $5,500 and as we look at more of these, these subsequent charts here, whenever that neural index goes down to a red, remember it’s only looking ahead 48 hours. And oftentimes you’ll see some lower lows set in over the next couple days. How I like to look at this is saying, “Okay, well if we have average prices which are denoted by that predicted moving average, well we can expect over the next couple days to actually trade below whatever that moving average was.”And you see you get those periods where you’re moving a little bit below, but the blue line is still very much above the black line and that trend is still in place.
Shares of McDonald’s here, little bit more tricky. We have this blue line crossing above the black line, but a really long period of time where the market really ran sideways and didn’t do a whole lot. Well, what you’ll see here is that that blue line remains above the black line saying, look, the overall trend is still up. If you’re a trend trader, you want to stay in this. And this gets very important because obviously if you get out of the market in this first month or so, you end up missing some of the best part of the move here in shares in McDonald’s.But where things can help is by utilizing these, really all the tools. The neural index, the predicted high and low ranges, and you see here again this neural index going bearish. You get some weakness over the next couple of days, you get some moves below that predicted moving average, but that’s where the predicted ranges come in and help you out and say, “Okay, well make these adjustments and understand, look, expect average prices to move lower here, expect them to move lower here, expect them to move lower here.” Rather than getting out of the market, fearful of weakness, you understand, hey, I should be buying on that weakness. The trend is still to the upside and make sure that you’re involved for when this market really straightens out and shares really start to move higher because oftentimes when that market breaks out, you end up having to chase it down and don’t get a great entry, have to run higher risk.But you see even here as the market starts to break out, some really great entry. Is getting really close to those predicted lows so that you can still get that entry as that market moves higher and don’t have to chase things on a day to day basis. Once again, really nice move here in shares of McDonald’s, but if you’re not understanding that look, the trend is still up, don’t get shaken out of your position here over this few weeks where the market doesn’t do much, well shares pop at about over 8%, $17 per share in just the past 33 trading days. Again, if you’re trading options and things like that, really nice opportunity to get those options cheap and really profit as those shares move higher.
Shares here of Tesla. Again, we have a crossover to the upside. Neural index strongly had a one here, but again, those periods of time where hey, expect to trade on the lower side of that predicted moving average. It is average prices, a prediction of average prices. You expect to trade above and below it, but don’t lose sight of the bigger picture. And you see that when things really start to move, price can get a little sketchy and price moving higher and higher every day. But you see very clearly that blue line well above the black line saying, look, this is an uptrend. You can go ahead and look to get involved in these types of opportunities early as these crossovers come through. And you see multiple opportunities along the way to not only buy on those dips but understand where you want to come in on an intraday basis. Again, really nice opportunity in shares of Tesla. This thing’s almost doubled just in a very short period of time. Most recent opportunity here coming through up over 69% just in the past 31 trading days. The market is and an absolute tear. Again, 500 share position. You’re up over $117,000, even a 100 shares though, making a very substantial profit.
Shares here of Waste Management. Again, another opportunity here, we have this blue line crossing above the black line and you get those periods of turbulence here. You get a couple neural index going bearish, but still you look at that blue line still well above the black line saying average prices are still well in the positive, the overall trend is still up. And then look how this neural index gets bullish over the subsequent 48 hour period saying, look, be a buyer here. This is definitely a time of trend strength but also a short term strength and you’ve got those tools, those predicted ranges. And what I really like about these tools is that when you come in, have this information the day before the trading day, you go ahead and set limit orders and you see on days like this where the market gaps down, you get filled at these lows on those gap downs.When the market opens down there, you get filled and immediately making a lot of money as that uptrend continues. Once again, you see just multiple opportunities here day after day to get involved in the market before that big pop really going ahead and moving shares higher here. Again, shares of Waste Management up pretty considerably over a pretty short period of time here. Over 7%. We’re talking about Waste Management here, but a 7% move just in the past 23 days. What’s really nice about some of these slower moving stocks though was actually the accuracy of the predicted highs and lows during that low volatility period. When you have an accurate gauge, even if you don’t get a huge percentage move, you’ll be taking profit along the way, buying back at lower prices and really making the most of that opportunity.
Now lastly here we’ve seen some weakness in the market, but of course, you want to say, “Okay, well all these other areas of the market, you don’t want to short. Those trends are still to the upside.” But here in Sprouts Farmer’s Market, you see we have this blue line crossing below the black line. Neural index strongly at a zero-configuration here. We have a little bit neural index pops up for one day here. You see you get a little bit of a high setting in, sort of re-testing that price action for several days moving forward. Another opportunity here where the market sort of spikes up but very clearly markets in a downtrend. For the past couple of months now, you do not want to be getting long here in shares of Sprouts Farmer’s Market. Really the past month here. But again, having these periods of time where it’s like, look, if you want to short the market, find these areas of excessive weakness and you see, once you get these good intraday levels, you’re getting a really great entry for a shorter term trade here.Again, you get a little bit of a spike here, but almost immediately that big trend taking things lower and that overall trend continuing. If you want to find some places to go ahead and hedge the overall portfolio, there’s plenty of places where you can be considerably up in your long positions. But understand that hey, if VantagePoint’s forecasting the markets move to the downside, I can go and hedge some of these positions and even if the bottom falls out of the market, you’re still making money overall and have things hedged pretty well there. Again, really nice opportunity here to the downside. Obviously a cheaper stock really accelerating to the downside here. Some market weakness as far as the index is concerned can really take these things lower, but down over 13% just in the past 22 trading days. Again, just 500 shares on a pretty cheap stock that has you up over $1,300.Once again, just some fantastic trading opportunities out there in the market. But of course you want to know how to really adapt to that changing market environment and understand when you should stick it out, adjust your position, scale in and get better overall entry prices on a particular asset. And also when it’s good to go ahead and get out of the way. When a trend is reversed and that opportunity is over, go ahead and take those profits and utilize a lot of the scanning features here. We went over this last week of how you can identify new opportunities in the market that meet your specific trading criteria.Once again, this has been our Hot Stocks Outlook for January 24th, 2020. Thank you all for watching. Best of luck and bye for now.