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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 Cummins ($CMI), Keycorp ($KEY), TESLA ($TSLA), Keycorp ($KEY), Lockheed Martin ($LMT), WalMart ($WMT), and SnapOn Tools($SNA)
Hello again traders and welcome back to the Hot Stocks Outlook for December 16th, 2022. Hope y’all are having an excellent week as always out there in the financial markets and plenty to cover here in today’s outlook. So we’ll go ahead and really continue on with a lot of what we looked at last week, seeing a lot of this weakness come into the markets.
But we can start out with shares of Cummins, which we actually saw this fresh crossover coming through. We’ll explain how this all works, but as we move forward, we’ll look at Lockheed Martin. We’ve got Tesla here, Walmart stores, KeyCorp, and lastly, Snap On. So these are also a couple markets we looked at last week here. So really great example and a really great time if you haven’t already, to go ahead and sign up for a live demonstration. And what you can do is actually get some more specific examples about how this technology can help you as a trader make better trading decisions day in and day out. And so there’s a really great example of how these really predictive indicators update and help traders adapt to changing market conditions.
So starting out here, we have shares of Cummins and a really great example here again of daily price action. So each one of these candles is representing a full and complete trading day, and it’s right up against that price data over the past couple weeks, where we see that there is a black line and also a blue line there. So the black line that you’re seeing there, that is a very common technical indicator. This is actually a simple moving average, and in this case, it’s a ten day simple moving average. So what it does is it looks back over the previous ten days, it’ll add all those days together and then divide by ten. And what that does is smooth out the existing price action for us and let us know where market prices have already been over a given period of time, but traders need to be ahead of that next move in the market.
And so what we’re able to do is compare that black lagging moving average to this blue value, and for that number to get plotted and calculated for the trader each and every evening, this is where that technology of artificial neural networks is coming into play. So rather than just looking back at past prices and really just reconfiguring what’s already occurred in the market, this is where the underlying technology of artificial neural networks perform what’s called intermarket analysis.
So what it understands are other markets that are known to drive and influence the future price of Cummins. Now this can be things like the broader S&P 500, which we can see has had some trouble recently. But this can also be things like the dollar index, which has firmed up and also causes some problems sometimes with stocks, but there’s a lot more subtle relationships happening, right?
There’s relationships between broader ETF groups, there’s relationships between individual stocks, there’s relationships in big commodities, global interest rates. So this is how the software is able to really look at things globally, look at all of those markets that are driving and influencing your portfolio and those individual markets that you’re trading. And that what it does is it takes that information to actually generate price predictions. And that’s where artificial neural networks are exceptional, is taking in huge amounts of data and then generating highly accurate predictions.
But what we do is we take those price predictions and use them to construct these indicators. So rather than having lagging tools that really just reamalgamate what’s already occurred in the market, what we have is forward looking predictive tools that can help traders make better decisions with a very high level of accuracy.
So whenever we see that blue line crossing below the black line, in this case, not just in Cummins, but we’ve seen it pretty widespread in some very important places throughout the broader marketplace, well that informs you how the portfolio should shift. So again, once that blue line crosses below the black line, now we’ve gotten this move that’s gone lower, but we have these other shorter term predictive indicators that can help traders realize what’s going on and make the most of these opportunities.
So if we come to the very bottom of the chart here in Cummins, you see that you have this bar that goes from red to green, back to green, and what this is, is another one of these predictive indicators, but tuned to solve a different problem. And this problem is short-term strength or weakness over the next 48 hours. It’s a very short term within that overall trend. And you see how this works when that neural index is bearish and the overall trend is down. Well, you see that momentum really picks up to the downside.
Now that neural index gets bullish and you see we had that it really boost in the market early on in the week, but is the trend up? Well look at the distance between that blue line and the black line. It’s telling you average prices are still well below that simple moving average and you would therefore want to remain short. And so again, that tool can really help you understand that, okay, well there’s some strength coming into the market, but is that strength you want to buy or actually strength you should use to go ahead and set a short position.
Now, in addition to, you got your predicted moving average, your neural index, to really round out the entirety of these short-term forecasts, you’re also provided a predicted high and a predicted low. So these are intraday levels that traders can be aware of and this is very relevant. So as we look at Cumins and we look at this market moving forward, we can take a look at all of those predicted highs and lows against the actual market data before it occurred.
So here’s the prediction for today. Here’s all these past predictions, and this is why this is so important, is to understand that get those entries on early, go ahead and short the market, take profits on shorts. In this scenario, you see it comes back to your entry, but still, if you have an order, even at the predicted high, you’ll get filled at the limit really much at the open and keep expressing that short position.
So you could see early back here, it’s telling you that strength is likely to come in. But as you’re able to take these tools, especially with the help of things like the vantage point and Telescan, you can see, well how strong is this market? Should that rally that we got early in the week really be a bullish opportunity or should we understand that this is really not bullish at all and the broader markets have shifted to the bearish side?
Here’s Lockheed Martin. I wanted to bring this in just to really highlight the short term indicators. And what we’ll notice is, the blue line below the black line. Now the market has run sideways. Not much of a move, but this is more than a week here. This is going back one, two, three, four, five, six, seven, onto the eighth trading day here. And so what you’ve seen is that even in some of these areas, in the defense areas as far as the stock market, still showing crossovers to the downside. Now you see that neural index that goes from bullish to bearish back to bullish because again, this is only a forty-eight hour forecast and the market is running sideways with no clear direction.
But then, we can bring in those predicted highs and lows and again, get the overall forecast, right? It’s not just one thing here. And understand that the software’s telling you, look up towards these predicted highs. This is an area to go ahead and set short positions, because clearly that directional bias should be set to the short side. And you see about five entries at the very top side of this range. And now we’re seeing a lot of weakness come into the marketplace.
And again, we highlighted things like Arista networks last week is seeing strong markets, still highlighting weakness. And when you combine that with all the things that are in downtrends and have been in downtrends and have been in downtrend for a couple weeks already, like KeyCorp, we may have some problems with the S&P 500 and things like this.
So here’s shares of Tesla. And again, just the past couple of weeks, very clear, you see this crossover, the downside blue line, well below the black line, you get one blip here in the neural index bullish, but you’ve pretty much had, let’s see, one, two, three, four, five, six, seven, eight… Eight days of downtrend, seven of the eight days with that neural index bearish and your predicted highs and lows to let you know, hey, if you want to go ahead and short Tesla, what price levels should you be looking to go ahead and do that?
And you see that we get these predicted highs up here, we get another gap up here. But overall, the trend, very much to the downside. And you getting that information that says, look, this is very skewed to the downside. All your short term indicators keep updating to the downside, your predicted highs and lows keep moving to the downside. And what happens is when you’re doing your analysis with this tool and able to see all these fresh crossover, see how much of the market is in downtrend or uptrend, it can make you a much better index trader, right?
Understanding how strong or weak that S&P or NASDAQ happens to be. And that can really help you hedge or modify your current positions.
Now here’s Walmart. And so again, just highlighting that there’s some really important areas in the market where we’ve seen weakness and not just weakness today or last week, which we covered, but coming through, coming in across the board. Here, Walmart stores, you have this crossover, the downside, neural index gets bullish and we get our little blip in short term price action. But look at the distance between that predicted moving average and the actual moving average. I mean, this is about as clear as a downtrend as you can get. And again, a very important retail establishment in the market and a place that is going to have a lot of investors paying attention when it starts to fall off.
So here we have, again, a decline of about 4%, but again, more indicative of these very important markets and areas that are starting to turn lower. And so if you’re involved in the markets at all, this is very relevant information that can help you really adjust that portfolio and make money on the downside and certainly not get caught up on some of these really dangerous scenarios where we see markets reversing and heading lower.
Here’s KeyCorp, and this is one of the first markets we looked at last week, just highlighting the broad base weakness that we’ve seen and some places a little bit more advanced than others. And I just wanted to go ahead and highlight the updated forecast here. So we update these every about four or five trading days and move over to the next five trading days. And here in KeyCorp, it’s highlighting that, okay, well this is a very weak market going into this next week, but you’re getting that short term strength from the neural index.
So again, warning you that hey, you may get some higher highs over the next subsequent forty-eight hour periods, but very clearly nothing much has shifted here. If you’ve gotten some short positions on early, well, it’s a great opportunity to potentially add to those positions and keep expressing that bearishness in an area where things are working out.
So shares of KeyCorp, we’ve gotten a continuation of the decline. This is one of these things where we’ve started to see this weakness in financials and then it started to play out in bigger areas like JP Morgan and all this, but shares off about 10% in just the past eighteen trading days. And again, very small share position there. So you could certainly get a larger position in a couple hundred shares, but highlighting the magnitude of these moves, right? 10% in just the past, really not even a month on the calendar here, and things aren’t looking any better out there.
So if you have things in the portfolio that are positioned to the long side, there’s some issues out there and certainly some adjustments, even making over the past couple weeks, it would do you some really help here to get you out of the way as some of these problems.
Lastly here, Snap On, and again, this is just one of these markets that we brought through with some of these early crossovers. Just want to update these forecasts. So it’s quite obvious we got that big strength in the early part of the week and the market’s responding to inflation reports. But that’s the whole thing, is everyone’s responding to inflation reports in this tiny little window. And what you don’t want to lose is the, really the bigger picture here. And here we see Snap On, a very clear crossover, a lot of separation. And so that neural index gets bullish and letting you know, hey, higher highs over the next forty-eight hours. But it isn’t highlighting that this is an opportunity to buy. And not only has it not been an opportunity to buy and actually winds up being a really great opportunity to get filled to continue that campaign of shorting the market and taking profits on shorts.
So again, Snap On, here again, early days, but this is why over the past couple weeks it’s like, okay, well what’s shifted? What are the indicators picking up on? And how are they skewing bullish or bearish with the help of those predictive indicators, pushing them more and more in the direction of where markets are likely to move. So here again, we have a lot of these things clueing lower very early here, right? Share’s only off about 3%, but we’re seeing things start to pick up and this is exactly where you don’t want to be on the wrong side of things.
And if anything can gear up at much lower prices, wait for these crossovers to move to the upside, and then there’ll be much easier trading to take advantage of new opportunities that are opening up. So again, just a really exciting time in the markets. We’re seeing a lot of market movement, but if you don’t really have the right tools, this can seem extremely confusing as far as what’s going on out there, more broadly in the marketplace and where the best places to go ahead and position yourself are. So it’s a really great time to go ahead and get those live demonstrations, learn more about how this technology can help you. Now things are really moving forward as far as technical analysis. So once again, this has been our Hot Stocks Outlook for December 16th, 2022. Thank you all for watching. Best of luck out there and bye for now.
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