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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 SPDR SPY($SPY), HF Sinclair ($DINO), Church and Dwight ($CHD), Marathon Petroleum ($MPC), Tesla ($TSLA). General Motors ($GM), American Eagle Outfitters ($AEO). JABIL ($JBL), Microsoft ($MSFT) and Broadcom ($AVGO)
SPDR SPY ETF ($SPY)
Hello again traders, and welcome back to the Hot Stocks Outlook for August 11th, 2023. I hope you all are having a great week out there in the financial markets. As always, we’re going to cover a lot of really exciting opportunities, hopefully highlight how you can get ahead some of these big shifts we’re seeing in the financial space. But as we typically do, we’ll start and take a look at the broader markets with this SPY ETF, and we can see this, we just get a sense of where things have been over the past year.
Well, going back 12 months, we’re actually up about 6% now. Year to date number getting chipped into a little bit. And that’s because things have really been running sideways over the past 30 days, and certainly the past really few weeks here in the SPY, but also a lot of individual markets and individual stocks.
So let’s go ahead and take a look at that and highlight how can we understand where are the safer places as far as taking on new positioning in the market and where are those warning signs starting to show up?
So we’ve talked quite a bit about the energy space, and this is a really great example starting out here with Marathon Petroleum Company.
What we have here is daily price action. So each one of these candles that you see represents a complete trading day in the market. And it’s right up against all that daily price action that what you’ll notice there is that there is a black line value and also a blue line value. So what that black line value is, is actually a simple moving average or what we call the actual simple moving average. And in this case, what it does is it looks back over the previous 10 closes, it’ll add those all together and then divide by that number.
So what that does is it really smooths out the really existing price action and let traders know where market prices have been. But obviously traders want to be ahead of that next move in the marketplace and not get caught offside. So what we’re able to do is compare that black line value or what you might call a lagging moving average to this proprietary predicted moving average. And for that number to get plotted, calculated and placed on the chart every evening for traders, well, this is where the technology of artificial neural networks come into play. And what they’re doing is what we would call intermarket analysis.
Now, we can certainly understand that a stock like Marathon Petroleum Company, well it’s going to be affected by energy prices, well. But it goes a lot further than that. This can go all the way down to individual ETF market. So probably in the energy space you’re going to share some very important price clues that can give us some guidance as far as the future price of Marathon Petroleum. But also, individual stocks. Whether it be energy stocks or stocks that seem entirely unrelated can be very important and again, offer those extremely helpful price clues.
But this goes all the way to things like the value of the dollar index, global currencies. It’ll look at, of course, the commodities, oil, gold, copper. It can look at wheat prices, whatever’s applicable to that specific market that you’re trading, and of course things like global interest rates. So what it’s able to do is take this global approach, understand how that’s affecting in this case, the target market that you might be trading, and then offer up extremely accurate price predictions and essentially the suite of tools that helps traders make much better trading decisions in the marketplace.
So what we’ve been highlighting over the past few weeks here, really over months really is that energies look strong. And we’ve recently started to see some weakness in tech shares. So when we look at this forecast for Marathon Petroleum, well, what we can see is that blue line crossing above the black line and leading up to this present day, well, we’ve had a lot of strength in the market.
We can see since that blue line crosses above the black line and signals that the overall trend, those average prices are expected to move higher than the actual moving average, you have a 28% rally over the past 33 trading days. But this is where vantage point’s really exceptional in that it has other tools to solve different problems. So if you look at all the way to the right-hand side of the chart, this bar gets updated each and every evening again for the trader, but it’s solving a different problem.
It’s not looking at the overall trend and whether average price or expected to move up or down over a period of time. This is very short-term, looking ahead 48 hours or essentially you can think of that as two candles or two trading days in the market. So this helps traders anticipate short-term strength or weakness coming in. It can help you understand when you might want to look to buy on a dip when you understand that the overall trend is still up.
Lastly, we’re provided even a predicted high and a predicted low. So on each one of these subsequent charts, what you’re going to see is this little shadow candle to the right of the current price action, and that’s two separate neural networks solving these different problems of, what’s the expected high to be over the next trading day and what is the expected low?
And when we combine all of these tools together, well, this is where things get really exceptional, and we can see as we’ve had this really nice rally in energy, well, it picks out numerous points along the way where traders can add to their position and especially short-term traders, get an exceptional entry where you see the market is not spending much time at all pushing against you before it really starts to trend again and move higher in that expected direction forecasted by that predicted moving average. So again, we got a 28% rally there, but let’s highlight where has some of this weakness been.
So a couple of weeks ago, we brought in shares of Tesla and started making some of these warnings that, okay, well, we’re seeing a lot of these forecasts shift to the downside. And that’s really seen through the help of some of VantagePoint’s other tools like the VantagePoint IntelliScan. You can actually scan through the market with the help of these predictive indicators and identify where these important shifts are happening.
So here we have Tesla, that crossover moving to the downside. Now things have been a little bit more sideways where that neural index gets bullish and you’ll see a couple of days of subsequent hops in the market, but you see that, that blue line is still very much below the black line, and then as we look towards these intraday daily predicted highs and lows, where you see how exceptional this can be if you have limit orders just waiting in the market, this is where artificial intelligence is extremely helpful, getting ahead of things, looking at the important factors and generating a highly accurate prediction of where things are likely to move.
So again, not a huge decline here, but certainly a period where do you want to be getting all excited and expecting Tesla to rally? Well, no, we’ve seen things slide lower and slide lower.
Here’s General Motors, and again, another broad warning sign as we see this crossover to the downside. We can see this in Ford, Tesla, obviously a lot of these auto manufacturers.
Well here you see that crossover to the downside. Again, we get these little blips where the neural index pops up and you get little higher highs over the next couple of trading days. Again, you see it here where you run sideways for a couple of days, but look at that distance between the blue line and the black line separate more and more as each trading day goes by signaling that the overall trend is down. And again, we can look at these very short-term clues and information from vantage point predicted high right there, you gap up and trading immediately lower. You move up to this high, move up to this high, and that’s about it. But three excellent entries as this market slides pretty aggressively here in shares of General Motors. So we can see that coming to present day here, we’ve got shares off about 13.6% in just the past 15 trading days.
So we’re starting to see a lot of this spread out here. You have Church & Dwight cross over to the downside. Again, these little areas where the neural index will get bullish, again, just signaling bullish price action over the next 48 hours. But as long as that blue line remains below the black line, while that overall trend is still very much to the downside, those neural networks are saying, okay, well the overall trend is still pushing bearishly here. And we’ve seen share slide not a very active stock, but something that again is showing that things have shifted in the marketplace and slid more and more to the downside.
Now, one of these stocks that we keep bringing through in each Hot Stocks Outlook along with many of these energy stocks, and there was Archer-Daniels-Midland, some of these agricultural stocks doing quite well. Well here in HF Sinclair, what’s happened over the past week, we just had a monster rally as energy keeps grinding higher. So this is where if you get these things in the portfolio where you can always trail your stops, you can always pepper things, pepper some shorts into the portfolio to balance things out.
But here we see just in the past six trading days, I mean we can go from essentially last Friday’s open. You already have about 10% rally there in just the past five trading days. But this has been a monster rally over a month where shares have run a little bit sideways. Here you see about a 31, 32% rally in just the past 29 trading days. So really exciting stuff there.
Of course, we can take a look at those predicted highs and lows along the way, and we’ll of course these really nice entries as the market starts to accelerate and then rocket ship to the upside that we’ve seen recently. Now, there has been this spattering of strength throughout the market.
American Eagle Outfitters ($AEO)
So here you see American Eagle Outfitters, really nice crossover to the upside and just a huge rally here.
You see that you just get a couple blips along the way where that neural index goes bearish. But overall, what’s this forecast been highlighting? Blue line over black line, tons of strength from that short-term forecast from the neural index and clearly indicating that if you’re trading here, well, you would only want to go long, take profits on those longs and really not expect the weakness yet in some of these areas.
But lastly, I just want to bring in some of these forecasts, and this is where things like VantagePoint’s IntelliScan are really helpful. And when you can develop a process based on the types of markets you look for and make sure that you’re constantly seeing these big shifts happening, well, this makes it very clear to understand, well, where should the portfolio shift to? What types of markets should I be buying and getting bullish in? And what are the markets I can just avoid? Get out of the way, step aside.
You can always wait for those vantage point forecasts to get bullish in the future. But currently we see Jabil getting this cross over the downside. This I think a supplier to Apple, which we saw had earnings and hasn’t really suffered over the past couple of weeks of trading here. But here at Jabil we see that crossover to the downside. These predicted highs offering up great levels to, if you’re long, get out of the market and if you want to go short, well, there’s some areas where you can go ahead and exploit that price action as shares move a little bit lower. You see from around 112 now slipping down to about 106, 105 or so.
We’ve got Microsoft. So again, bringing these through that these are very important signals for the marketplace. When you see Microsoft, one of the largest components of the S&P and the NASDAQ here, along with things like Apple, shifting to the downside, you want to be aware of this and make sure that the portfolio is taking these things into account. So you again, see that neural index gets bullish, you get a couple of sideways days, but it flips bearish very quickly and you see that momentum really heats up. Again, you get a sideways period, but again, signaling that things are really heating up to the downside here and you want to be very careful as markets start to slip.
Lastly here, shares of Broadcom. Again, another signal, big stock here, crossover to the downside, neural index bearish. And you see how things have really accelerated as you get that combination of that separation from that predicted moving average signaling that those neural networks are skewing the bearish side here, and then that 48 hour forecast from the neural index, signaling that things are quite weak.
And of course, we take that down to the predicted highs and lows. It offers up some of these great daily levels to say, look, you do not want to be long up at these levels, go ahead and set your positions. Maybe just get out of the way and find some areas where it’s going to be easier to get on the right side of things and benefit from these highly accurate predictive forecasts. You see, again, about a 5% slip just over the past four trading days.
And again, this is where tools like our VantagePoint IntelliScan are extremely helpful. So you can scan through the markets with traditional technical analysis, but it’s not going to give you that edge in really recognizing these shifts happen as soon as possible. So you can get ahead of this, get the portfolio positioned, and really get yourself set up to potentially be in a lot of exciting moves like we’ve seen throughout the energy space and elsewhere.
So that will be it for me today. Once again, this has been our Hot Stocks Outlook for August 11th, 2023. Thank you all for watching. Best of luck out there, and bye for now.
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