Hot Stocks Outlook for the Week of May 17th, 2019
The Hot Stocks Outlook uses VantagePoint market forecasts that are up to 86% accurate to demonstrate how traders can improve their timing and direction. In this week’s video, we analyze forecasts for GoPro ($GPRO), The Gap ($GPS), O’Reilly Automotive ($ORLY), Tyson ($TSN) and J.M. Smucker Company ($SJM).
This Week’s Hot Stocks Outlook
Good afternoon traders and welcome back to the Hot Stocks Outlook for May 17th, 2019. Hope you all have had a great week in the financial markets and as always, plenty of opportunities to cover. We’re going to start here with GoPro, we’ve got shares of Gap, O’Reilly Automotive and also more of these food production stocks where you’ve highlighted had done extremely well while the markets have seen some increased volatility here. But starting here with shares of GoPro and really covering how every single forecast works within the vantage point software. What we have here are daily bars. This is daily price action, we can see going back to the beginning of the month and against those daily bars, you see that there is a black line and also a blue line. Now the black line that you see against the price action, that is what’s called the actual or simple moving average.And that’s a very common technical indicator. You can get it in just about any platform out there. And what it does is it plots average prices rolling forward over a given period of time. But really the weakness with that indicator is it’s a really good barometer of where prices have already been. And one of the other issues is that it only looks at one market in isolation, in this case, the shares of GoPro and the closed prices that have come within that market. Now what we’re able to compare that black line on the chart is we’re able to compare it with this blue value. And so for this value to be generated, Vantagepoint is utilizing the technology of neural networks, which is a type of artificial intelligence to look at how up to 35 other markets are affecting and influencing shares of GoPro. So this can be different technology stocks, this can be ETF groups. This is things like the S&P 500, the dollar index, currencies, interest rates.And so what it’s able to do is end generate predictive data, so data in the future that hasn’t yet occurred yet, and actually build that into these indicators, turning them into predictive indicators. So whenever we get this blue value crossing above the black value, which we see we get across right here, what it’s indicating is average prices are expected to move higher than where they’ve been and that would suggest to traders it’s time to go ahead and look to get along the market. Now in addition to that predicted moving average, you see that there’s also a green and a red bar at the bottom of the screen and that is another indicator driven by that neural network process, but it’s only looking ahead 48 hours. So it’s very short term and really you know, just about, you know, 48 hours of strength or weakness in the market and that can indicate really great times to actually add to your position.
So you see in days like this where you get the closed here, neural index is down, and it’s saying expect some decreased price action, possibly some price action that takes place below the moving average over the next couple of trading days. But you still see the difference between that predicted moving average, and the actual still a widespread there. Suggesting, look, the trend is still up, you don’t want to get out of the position but be aware of that short term strength or weakness don’t let it catch you off guard. And really lastly here, you’re actually provided a predicted high and low range before each and every trading day. So you see how we have a shadow candle here and really the great benefit of this is we can actually see how accurate all of these predictions were against the then actual market data that comes through. So if I go ahead and highlight these predicted highs and lows, you really see how this works as an overall forecast.You set your trend direction, you understand if you should expect some strength or possible weakness over the next couple of days. And as long as that blue line remains above the black line, well you want to be adding your position. So you see multiple levels here that suggest, hey, you want to be adding to your position, really three entries here on the way up. And you see that this has turned into a fantastic opportunity really with a lot of that market volatility still forecasting here that this stock is expected to go higher, and you’ve gotten a 27% rally just over the past eight trading days. Now all is not clear here, right? I mean all is not moving straight up, and we’ve really been highlighting that there’s these areas all throughout early April and then this month of May where you want to go ahead and hedge that portfolio, but where do you want to do that?
Well, we see shares of Gap here. You get this crossover to the downside, you’ll see you get these periods where the neural index will highlight that strength over the subsequent 48 hour periods. But the blue line is still below the black line signaling that, that trend direction is still down. And you see that this is a great time again where you have that strength coming into the market, but you want to remain to the short side. So when we take a look at this overall forecast, we can get an idea of, okay, well as a trader intraday, where do I want to be looking to take positions? And so as long as you can really handle the volatility over a couple of trading days and stick with that overall directional bias in the market, you see, plenty of great entries, about eight entries at the higher parts of the range here before this market really accelerates to the downside.So, just another fantastic opportunity, so eight entries there where overall you’ve got the ability to manage that position but also stick around for the longer term trend. And so we’ve seen a lot of volatility kicking the shares. This market here down 13, almost 14%. And you see what happens in periods like this, right? Where you get trend and just a lot of weakness signals saying, look, this is going to start moving lower, you want to make sure that you get that position on.
Now, O’Reilly Automotive, a lot of the automotive stocks and we looked at things like, you know, genuine parts the last week. Some of these manufacturing things really at risk here. And so we see these crossovers to the downside. Again, O’Reilly Automotive here, not very much strength, right? You get a couple a day here, you get a little bit of bounce in the market here but look at the distance between this prediction.So the actual, you know, the actual moving average and this prediction of the predicted moving average rolling forward. And of course, those shorter-term traders or even a longer-term trade and wants to add to your position strategically understands exactly where you want to be coming in and making those trading decisions. So you see about four entries as this market moves lower from those predicted high levels. But overall very clear that you know, this market to the downside don’t get caught pushing long positions, and you see markets declined off 11% in just the past 17 trading days. So, you know, even the options traders, if you want to go ahead and highlight areas where you can, you know, be looking to buy those put options or sell some calls, however you want to, you know, approach it, you know, a great time to come in and hedge that portfolio. But there are those other areas, which again, we’ve highlighted, you know, Tyson Foods, Hershey last week. The food stocks are doing very, very well.
So we see Tyson, I mean we brought this in a couple of weeks ago. So in the past couple of weeks of time we’ve just had that continuation of saying, okay, well use your vantage point levels. You can at this point using a lot of profits to add to this position. And you see, what is this? Five more entries to the upside as this market really starts to accelerate higher. So again, another great opportunity. We’ll go ahead and take a look at JM Smucker here, but overall here and shares of Tyson, about 30% rally to the upside, $18 per share, so just a fantastic boon. Just a hundred shares there, yup. $1,800 without a whole lot of, you know, really no signals that this market’s going to move lower. A lot of strength over the course of this and plenty opportunities to intraday really add to that position with those profits.
Here we have JM Smucker very similar situation, right? And this is really one of the really powerful things about intermarket analysis is that when you have these strong correlations with particular stocks, you’re going to see all these things turn up at the same time. So when you run these scans for these crossovers, you’re going to see a lot of similar markets come through at the same time and signal, okay, here’s a big sector move. I can go ahead and set that directional bias, but of course, you know, use these tools, right? Use the benefit of the predicted low’s to add to those positions and manage the trade effectively. So you see, even in these sideways periods, plenty opportunity to buy at the predicted low, take some profit, re-buy at these levels, and just continue on as long as that blue line in that prediction is saying the trend is still up, stick with that position.And you see a lot of these things have resulted in some really fantastic rallies that have weathered the storm of you know, tariffs and volatility that you’re seeing on things like the S&P 500, and you know, certain types of stocks within those indexes. So another 22, almost 23% now rally over the past couple months here and JM Smucker’s, Tyson, Monster Energy, just really great opportunities out there, but you want to know, you know, where to take that risk, where do get along. And also those areas like Gap where you should just avoid the market. You can either hedge your portfolio or just straight make money on the short side of the market here as a lot of these things start to decline and pull back. So once again, this has been our hot stocks outlook for May 17th, 2019. Thank you all for watching. Best of luck to the traders out there in the market. Thanks again and bye for now.