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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 Walt Disney ($DIS), SPY ETF ($SPY), Citigroup ($C), Tesla Motors ($TSLA), Caterpillar ($CAT), Hilton Worldwide Holdings ($HLT), NVIDIA ($NVDA), American Express ($AXP)
Hello, traders, and welcome back to the Hot Stocks Outlook for February 10th, 2023. Hope y’all are having a great week out there in the financial markets and as always, we have plenty to cover here in today’s Hot Stocks Outlook.
SPY ETF ($SPY)
Now, we’ll start here on the SPY, just the S&P 500 ETF. What we can see here is over the past couple months, we’ve gotten a pretty decent rally of about 7.5%. We’re about nine or 10% at the highs here, but as we look at the S&P 500 over the past year, we can see that we’ve actually been down about 10% over the past year, 3% over the past six months, and recently we’ve actually seen some decent opportunities. We’ll go ahead and highlight where those opportunities are, but still only about a three-month move, you got about a 6.5%, 4%, and over the past five days we’re actually down.
So when we look towards the vantagepoint, predictive forecasts, this is what can really help us understand where are the new opportunities emerging and where are those opportunities that are likely to outperform the broader markets in the SPY and S&P 500?
Let’s jump into this and let’s take a look at Citigroup ’cause I think this is very important for currently what we’re seeing in the markets, and how things like the dollar index and those global inner market relationships are affecting things.
We start out here with shares of Citigroup and what we have is daily price action, so each one of these candles represents a full and complete trading day. Right up against that price data, what you’re going to see there is that there is a black line and also a blue line. The black line that you’re seeing there, that is actually a simple moving average. It’s a very common technical indicator. In this case, what it does is it looks back over the previous 10 closed prices, so it’ll add all those closing days together, divide by 10 and work that number forward.
That acts to really smooth out the existing price action for us and lets traders know where the market has already been over a given period of time. But vantage point traders want to be ahead of that next move. So what we’re able to do is compare that black lagging moving average to this forward-looking predictive moving average.
For this number to get plotted and calculated against the chart every evening for traders, this is where the technology comes in. The technology specifically is artificial neural networks performing what’s called intermarket analysis. What that means is for markets like Citigroup, Citigroup’s going to share some very important relationships with things like the SPY and the S&P 500, or potentially the Nasdaq and other indices.
It’s also going to share very important relationships with other banking ETFs, financial ETFs. It’ll share relationships with the dollar index, which has been critically important for stock prices. But the software’s also able to look at relationships between oil, or the gold market, or interest rates. It takes this really holistic approach looking at even relationships down to individual stocks that share significant market relationships, and it uses all of that inner market data from up to 30 markets that are known to drive and influence future price, and it’s utilizing that information to actually generate future price predictions. It’s those future price predictions generated via the technology that are used to construct these indicators.
So rather than having a tool that really just gets dragged around and reacts to the market, what we have is a forward-looking predictive tool. What we’ve seen is whenever that blue line or predicted moving average crosses above the black line, it’s suggesting average prices are expected to start moving higher.
Now, we’re going to have a lot of forecasts to get through, but let’s go ahead and continue on with this one and explain the other parts of the forecast really that round out these predictive indicators so you know how all of these forecasts and indicators work together.
Now, at the very bottom of the chart, you see this bar that goes from green to red, this is used to solve a different problem. This is called the predicted neural index and it’s used to anticipate short term strength or weakness in the market just over the next 48 hours, or you can think of it as a couple of candles. We have that overall prediction of average prices with the predicted moving average and short term strength or weakness, so those neural networks are called to solve a different problem for us as a trader solving over a different timeframe and very short term.
Now, those neural networks are also tuned to solve even intraday problems like the predicted high and low. That’s what you’re seeing at the very right-hand side of the chart here, is a prediction of the high and low, and what we’ll get is the actual trading day filling in how accurate that prediction was.
This is what we do every week, is we look at the entirety of the forecast and say, “Okay, well if we understand that stocks and Citigroup and financial stocks potentially are starting to move higher here, we have that roadmap that says, should we anticipate short-term strength or weakness over the next 48 hours, and where might we actually look for entries and profit targets in the market?”
You can see here as we bring up all of those predicted highs and lows, numerous entries over the course of the trade, and that’s what you need is a tool that’s going to be able to adapt, understand the market’s closed here, these inner market relationships has shifted, and what else has shifted in the markets that you’re trading?
What you see on the way up, you’re getting one, two, three, four, five, six, seven, eight, about nine pretty nice entries on the way up for Citigroup. But there’s a very important shift that traders need to understand, not just on this chart, but potentially in the broader markets, and this is how these tools can really help you, not just looking at the SPY, but looking at Citigroup and seeing where some of that strength is coming into the market.
So you see about a 17% rally here in the past 24 trading days, but what do we have over the past week? Well, crossover to the downside. Blue line below the black line. Neural index very bearish, and that sets you up to look for areas to either take profit on longs that you established last month, or look to go ahead in short and expect weakness in the market. You see, if you’re looking to establish shorts, well, you’ve got two of these predicted lows and there’s already been some money to potentially be made there.
But this is very important to establish that portfolio that really makes more than the SPY, which did all right, but only had about a 7% rally over the past couple months. You really want to find those areas in the market that are poised to outperform. Here you be see about a 16% rally, but things have shifted there.
Here’s shares of Caterpillar, and I wanted to bring this in because Caterpillar is a very important stock. Here we have a blue line crossing below the black line, very recently, very clearly here. I just don’t want to be very confusing here at all. We’ve seen a lot of bullish stocks, but here’s Caterpillar this whole last week, crossover to the downside neural index bearish.
You see when the neural index gets bullish, the subsequent 48 hours see higher highs, but the blue line is still very much below the black line, and you’d want to short take profits on shorts. Now we can look at those predicted highs and lows. Those intraday levels that are saying, okay, well on this trading day, look up towards this high and you close within the range.
Okay, well, it says the range is going to go up a little bit higher, look for the markets to trade up here, and sure enough, it trades up there and now we’re continuing lower again. You see we don’t quite up yet to these levels, but you hit there and again, moving lower. The overall trajectory, the bigger move is to the downside and a potentially nice place to hedge some of those long opportunities that you may have in the portfolio.
Now, one of those opportunities we’ve been highlighting here is Walt Disney, and we’ve seen a lot of earnings come out, that’s what this is here on the chart is earnings. The software has an extremely high level of accuracy associated with its indicators through earnings, fed announcements, really anything. So you have to decide if you want to take on those earning announcements, but when you have an entry in the market down at 87 and earnings are up at 112, you’ve got a lot of options on how you can deal with that.
Here we see Walt Disney shares, we’ll just review this opportunity, but I do want to highlight that we are seeing some neural index bearish, and we are seeing some warning signs, so it makes sense to hedge that portfolio, maybe come off a lot of that excessive strength that we’ve seen over the past few weeks. But here, we see Walt Disney shares, we can bring up that predicted high and low forecast and you just see how many days here this day after day, after day, pretty much once a week, you’re getting a really exceptional entry and the potential to maybe even have a profit target or any orders up here are going to take profit at the open and get you out of there.
You see, look where the market closed, right at the predicted low. Pretty interesting stuff there. Again, now we have that neural index a little bearish here. So we’ve seen some markets have earnings and then not performed so well. Amazon, very similar. Huge rally, earnings come in, change the trajectory.
Hilton Worldwide Holdings ($HLT)
Here’s Hilton Worldwide in a very straightforward forecast here where you see that blue line crossing over the black line, we’ve had a really nice rally and you want to know where should I look to stake out a position? You see in these individual shares, you can make a lot more money on those individual positions, but you may want to spread that out. Buy some Hilton, and Nvidia, Tesla, spread these things out a little bit, but all these things are outperforming. So you see that blue line crossing above the black line.
Here, you still see quite a bit of strength against some earnings and things coming through the calendar here, but this is now 26 trading days. So when we go ahead and look at all of these predicted highs and lows, so the short term traders if they want to come in and establish a position, well, clearly we know the directional bias. We’ve talked about there’s strength in this market, you want to be a buyer, take profits on longs if the blue line is above the black line. Let’s find those areas.
You see here just a ton of entries down here at about 146, all that support coming in and the market continuing higher, but there’s been about 18% move over the past 26 trading days. Again, an excellent spot to identify that strength coming into the market via VantagePoint’s predicted moving averages.
Really the beauty of this is we have tools like the VantagePoint and Intelliscan that are going to alert you as to when all these fresh crossovers are happening. Like we looked a couple of weeks ago, it’s just crossover to the upside, to the upside, to the upside on all of these very important stocks, and it became quite obvious that let’s look towards the long side, there’s some real opportunities opening up.
Here’s shares of Nvidia, blue line crossing above the black line and again, let’s just keep it simple. Look at these predicted highs and lows. It’s very clear you’d only want to be long in this market, but you have this roadmap again that says okay each week, where do I want to be scooping up shares? Where are those places of value? And also potentially where to take some profits so you can scoop up some more shares again at cheaper prices, potentially intraday there.
Again, nice move in Nvidia, very similar to again, these big stocks we’ve been looking at, but why have we been focusing on those big stocks? Well, those are the ones that are poised to move the most. You see a 47% rally in 23 trading days certainly outperforms that 6% over the past three months on the SPY.
Here’s shares of Tesla. We really brought this through, I think, all the way about back here, right as these crossovers came through, you see that this has now been, let’s take a look at this, over a month. You have two days where your 48-hour indicator was bearish and it was only bearish for one day and immediately went back to bullish. Other than that, the blue line has been well above the black line and then of course, we can look at predicted highs and lows.
Even just over the past week here, you see predicted low, that would’ve been Tuesday moving into Thursday now. About a 9% move just over the past three trading days. Now, if we looked at this week after week, after week, we’d see very similar moves, right. Predicted low, predicted low predicted low predicted low predicted low predicted low predicted low.
Plenty of opportunities to not only start a position but potentially build a position. When you’re trading with profits, that’s where things can get really exciting as you go ahead and capture not that 9% there, but potentially a lot more as this thing has been rolling now for a little bit over a month, you’re at 78% rally in 22 trading days.
Again, you got 78%, 48%, minimum 20% on these. Whereas the SPY’s doing okay, but there’s weakness out there. If you go through the previous hot stocks outlooks, look at the stocks that I’ve highlighted weakness on. Walmart, Quest Diagnostic Campbell’s Soup, so it’s easy to understand where to avoid or potentially hedge your shorts, and there’s been plenty of areas to go ahead and get long.
Here’s American Express. Again, this is earnings right in the middle of the chart here, but what I want to actually bring through here is just how accurate and adaptive these forecasts are. You look at these predicted highs and lows, sure earnings is going to create that volatility, but look how adaptive everything is. Taking in that information, looking at those inner market relationships that are known to affect American Express, and then forecasting these short-term predicted highs and lows so that traders can make intelligent trading decisions and pull some money out of these markets.
I know a little bit long-winded here today, but a very important Hot Stocks Outlooks to take a look at as we’re seeing some very important shifts in the market, but when you’ve come in with really great entries, more importantly in the right places throughout the market, you’re going to make a lot more than the 6% on the SPY, and you’ve got a really powerful positioning set up in the portfolio with some really great entries and a lot of potential profits to really continue here.
I’ll leave it there. Once again, it’s been the Hot Stocks Outlook for February 10th, 2023. Thank you all for watching. Best of luck, and bye for now.
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