Hot Stocks Outlook for the Week of March 12th, 2021

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 GoodyearTire(GT), CincinnatiFinancial(CINF), Johnson Controls(JCI), SPLUNK (SPLK), and Nuance(NUAN)

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Hello again traders and welcome back to the Hot Stocks Outlook for March 12th, 2021. Hope you all are having a great week out in the financial markets and like always, a lot of great opportunities to highlight here today. So we’re going to start out with Goodyear Tire and Rubber. We actually looked at this a few weeks ago. We also have Cincinnati Financial, Johnson Controls, Nuance, and Splunk here.

GoodyearTire(GT)

So starting out with Goodyear Tires, very good example of how all of these predictive indicators work to help traders manage positions.

Now, what we have here is daily price action. So each one of those candles represents a full and complete trading day. And all of this information comes through on end-of-day data. So as the day closes, you get the new forecast for the next trading data. Now what you have right up against that price data, though, you’ll notice that there is a blue and a black line there. Now the black line that you see there, that is actually a simple moving average. That’s a very common technical indicator. But really one of the weaknesses with regular traditional moving averages is that they really are just based on past price data. So wherever that most recent closes gets factored into the equation, but it does do a good job of smoothing out the price date and letting us know, well, where have average prices been over a given period of time. But as traders, of course, we want to understand where are prices likely to move going forward?

So what we’re able to do here is actually compare that black value on the chart, to this blue line that you see there. And so, for that number to be calculated and plotted on the chart each and every trading day, Vantagepoint is utilizing its technology of artificial neural networks. So a type of artificial intelligence and it’s doing what’s called intermarket analysis. So what that means is rather than just looking at where past price has been and plotting along, Vantagepoint is able to look at market relationships that affect the target market in question. So in this case, Goodyear Tire and Rubber.

So that means not just individual stocks, but it’s going to be looking at broader ETF markets. It’s going to be looking at global indices, like the S&P 500 or the Russell or the NASDAQ. It’s going to look at global currencies and global interest rates, even global commodity prices. So what it’s able to do is understand how those market relationships affect future price going forward. It utilizes that technology to actually generate future price predictions of where the market is likely to move and uses that data to actually help construct these predictive indicators. Whether that be this blue line against the chart, what we call the neural index at the bottom of the chart, or this predicted candle, which you see here at the very right-hand side of the chart.

Now to interpret this forecast, what we want to really be paying attention to is whenever that blue line crosses above the black line, it’s suggesting average prices are going to start moving higher and therefore you’d want to go ahead and look to take long positions in the market. Now there’s a lot of different ways that your strategy, whether it’s shorter term longer term, can benefit from that. But really where the great benefit here is, is in the software, really adapting to changing market conditions so that as the market continues or reverses to the downside, you can understand what the appropriate action is for your trading.

So you see here about a 55% rally to the upside over just the past 25 trading days. But what we can do is actually look and see how accurate each one of these predicted highs and predicted lows are for each trading day. So what this does is before the trading day occurs, actually gives you a range. And again, we’re going to go ahead and look back and see how accurate all of those predictions were on each and every trading day that that was produced. You see here that as the market moves forward, and you’re in that uptrend, sometimes you’re not going to get quite towards that predicted low, but it does a really great job of picking out these areas to go ahead and take a position in the market. So you get a good intraday price.

So what we’ve had over the past 24 trading days here, you see about one, two, three, four, five, six, seven, eight about nine entries as that market makes that really nice advance. What you can do is of course, take profit along the way, add to your position at lower levels and manage that position. Now at the very bottom of the chart though, you have another predictive indicator that’s very short term strength or weakness in the market. And this is going to be helpful to understand when there’s likely to be strength or weakness in an ongoing trend. So this is called the predicted neural index, and it’s really tuned to look ahead 48 hours.

So again, it’s utilizing that technology of artificial neural networks, but it’s designed to look ahead within this set time period of two trading days. It often is going to warn you of short-term weakness in the market. So you see that neural index goes bearish after this trading day, and you get some lower lows over the next few days, but that overall trend is still to the upside. You see, again here, you’re getting a little bit of a lower low within that next trading day. Again, seeing some declines in price, so you understand when to take profit, expect those lower levels and really make the most of that trading opportunity.

CincinnatiFinancial(CINF)

So moving onward, we have Cincinnati Financial and it’s the exact same approach, regardless of what markets you’re trading, whether they’re stocks, ETFs, futures markets, currency pairs. But here in Cincinnati Financial, we see a similar situation in February. You see these markets start to turn higher, that blue line crossing above the black line, and really a ton of strength from that neural index saying, look, this is a start of a new opportunity to go ahead and get long. We actually have some features in the software that are going to be able to identify when these predictive indicators are generating a signal. So we call that the Intelo scan, and it really allows you to identify when fresh crossovers are occurring. You can really set any of the predictive indicators in the software to find exactly the type of trade that you’re looking for. But we see here over the past month and a half year, we’ve had the market in a very strong uptrend.

A couple of very short-lived periods where that neural index had gone bearish, but you see overall pretty much outside of just two trading days, it’s been an extremely strong forecast to the upside. Very clearly only a situation where you’d want to go long, take profits on potentially long positions. Here the market of about 22.7%, but again, we can look at the accuracy of those daily levels. So when we look at this, we have to understand that this is literally 20, 30 plus short-term predictions from the software. They do a very good job as far as looking at, okay, how did the market close? How are those intermarket relationships affecting this target market? Then plotting forward how you should expect that market to trade so that you can, again, really be prepared for volatility and make the most of that trading opportunity.

So again, really nice opportunity about 22, 23% move to the upside just in the past month of a month and a half year on Cincinnati Financial. Here’s Johnson controls again, and you tend to see a lot of markets turn higher at the same time. That’s where you can really recognize that something’s going on in a particular area or sector of the market, and really hone in on that and say, okay, well, if all these forecasts and similar markets are starting to move to the upside, you’ve got a higher probability that you’re going to see a significant move there.

Johnson Controls(JCI)

So here in Johnson Controls, you get that crossover to the upside there, you’ll see a couple of these periods where neural index goes bearish, you get this gap down to that lower lows, just over the very short term price action, but the overall trend being to the upside. Once again, we can say, okay, well, how accurate are these short-term daily levels? You get really nice entries her early here. You get really close on these trading days towards these predicted lows. But again, as the market settles and run sideways, really helping you get in at the lower part of the range and benefit as that trend continues to the upside.

So here in Johnson Controls, we’ll take a look here at the overall situation, from where that forecast started moved to the upside. You have about an 18% rally in just the past 23 trading days. And lastly, here, we’ll take a look at a couple of tech stocks. This has been a really important narrative here in the markets, as far as the NASDAQ and tech stocks being very weak over the past month. The last thing you want to be doing is looking for long positions in the market, in the wrong place. Here we have Nuance Communications, very clearly a cross over to the downside. You again, see these situations where that neural index is saying, okay, we’ll expect some strength and some higher highs over these trading days. But overall, the trend is very clearly down.

So we can look at those predicted highs and lows, and again, have that advanced warning that says, okay, well, you may want to get short here. We’ll really be paying attention to these levels up here. Because it’s not going to really make much sense to get short on these trading days, unless you can get the good price and that’s going to make a big difference as far as how much money you can pull out of the market. Here you see you get this volatility, the market moving up higher, those predicted high and low ranges slanting up as well, letting you know, expect some higher highs over the next trading day, but don’t use that to get long. This is actually an opportunity to remain short the market, and then you see how those predicted levels get back on track and really help you get some nice entries in the overall move there.

Nuance(NUAN)

So Nuance Communications, we’ll take a look here. Overall, we’ve got a about 11, almost 12% decline just in the past 14 trading days. This has been certainly an area in the market where it’s been very clear, there’s some problems going on. So focus on those areas in the market where there’s a very strong uptrend, where things are clearly working in your favor and really avoid some of these tech stocks, at least here for the past month. Now, if you get some crossovers to the upside and it forecast these markets are moving back into an uptrend, well, great. You have the tools to manage that opportunity and participate.

SPLUNK (SPLK)

Here in shares of Splunk, I think we looked at this a couple of weeks ago as well. Again, very clear crossover to the downside in that second week of February. You’ll get these periods again where the neural index gets bullish and you’ve got again, those higher highs that’ll pop through over that time period, but very clearly the downtrend very much to the downside. Then you see the extent of the distance between that predicted moving average and the actual moving average, suggesting that this is a very strong move lower and average prices are significantly below where they need to be for things to start moving higher.

So once again, we’ll take a look at that overall move and then take a look at those predicted highs and lows. But we see a decline here of about 22, 23% in just the past 18 trading days. Again, the accuracy of those predicted highs and lows are going to help you if you want to hedge your portfolio and get short, you’ve got those tools that say, okay, well, if you’re going to be shorting the market, look up towards these predicted high levels, if you’re going to take any position at all here, right? So very clearly a nice opportunity to get short early on. And then some really great levels to come in and manage that opportunity as that trend continues.

So once again, this has been our Hot Stocks Outlook for March 12th, 2021. Hope you all are having a excellent week out in the financial markets. There’s just a huge amount of very large percentage moves and the software has done a really good job of identifying those areas where you want to focus your attention. And very clearly those areas where there’s some issues and problems, and you’re likely to see markets move lower. But of course you can make money on the downside as well, whether shorting or buying put options or a lot of other instruments to get that exposure to the short side. So have a great week. Thanks again, and bye for now.