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 BioNTech ($BNTX), AMD ($AMD), Harley-Davidson ($HOG), Molson-Coors ($TAP) and Callon Petroleum ($CPE)
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Hello again, traders and welcome back to the Hot Stocks Outlook for August 6th, 2021. Hope you’re all having a great week out there, of course, a lot to cover in today’s outlook. So let’s just go ahead and jump right into it. We’re going to go ahead and review a lot of these stocks we’ve looked at over the past couple of weeks and see these updated forecasts, but we’ll start here with BioNTech. We looked at that last week along with Pfizer. We’ve got AMD. So staying in that S&P 500 stocks doing well. Harley Davidson, Russell stocks not doing well. Energy’s not doing well. And lastly, Molson Coors here, which we talked about some beverage manufacturers and things like that last week.
So what I just really want to highlight are these big groups of markets that we see really playing out with these relationships. And it makes it very easy to then go in with VantagePoint and say, “Okay, let me pick my spots and where do we want to play or add to an existing portfolio.” So here in shares of BioNTech, what we have here against that daily price action you see as a black line and a blue line. Now this is very important to understand. Now what that black line is. is actually a regular simple moving average. So this is really our measure of where market prices have been, because it’s just going to look back over the previous price action, add the last 10 close prices together, divide them by 10. And it acts as a good rolling measure. It smooths out the price data of where things have been, but traders need to know where things are going next.
So what we want to do is compare that average of where things have been to this blue line that you see on the chart. Now, this is very important to understand for that value to get calculated in addition to things like your neural index at the bottom and your predicted highs and lows, which we’ll get to in a moment. But for all these values to be calculated, VantagePoint is utilizing its technology of artificial neural networks to perform what’s called intermarket analysis. And this is very important for when you’re trading individual stocks is, yes, there’s some obvious relationships that we can pull out by looking at a chart like Pfizer.
We can see there’s lot of strength here. Obviously, there’s a relationship going on here. But what neural networks are able to do is find a lot of those subtle relationships between markets that can give you valuable insight into future price action. So that can be things like ETF groups. That can be things like the S&P 500, global interest rates, global commodities. And also a number of individual stocks that are known to drive and influence future price. And so what happens is VantagePoint takes all of this information and it learns those relationships and uses them to actually generate future price prediction. So a true generated prediction of future prices moving forward. And then it’s using that predictive data to actually construct the value of these tools.
So turning what was lagging indicators that just get dragged around by the most recent price section into forward-looking predictive tools with a very high consistent level of accuracy. So whenever we see that blue line crossing above the black line suggest average prices are going to start moving higher, you’d want to go ahead and get long. Now we can see very clearly blue line has maintained above the black line and this trend has continued over the past week here now aggressively so moving higher. And we see the neural index at the bottom of the chart.
Now we’ll get some examples where the neural index goes from green to red. But in this example, you see that it just stays up in its green configuration. And what this is is again utilizing that technology of artificial neural networks, but in the same way that you might train an artificial intelligence to solve a maze and the exit of the maze might be in one point. Well, if you change the exit, well, the whole problem changes of how you need to solve that problem. Well, the same thing happens with these neural networks of we’ve got a 48-hour forecast of short-term strength or weakness with this predicted neural index. So that’s very specific short-term 48 hours, but we’ve also got these other targets, a predicted high and a predicted low that have other neural networks trained to pick out that spot for you of the predicted high, and the next day’s predicted low.
So you see how the combination of these tools gives your overall trend direction, short-term strength or weakness and then this roadmap of predicted highs and lows. And these are generated before each and every trading day. So what happens is those lines are plotted, the real trading day fills in. You can see how accurate those ranges were. And you see what happens here is we’re not going to hit that predicted low every day and especially when markets start to breakout, you’re going to move to the upside. But you see that you tend to get very close to these predicted lows, if not actually hit them and then trade up and move higher.
And even today, I looked at this stock moving into the day and sure enough we’ve hit the predicted low, traded pretty healthily off of it and we’ll see how this goes moving forward. But this is the whole point is understanding that, “Look, there’s an opportunity here to get long.” As long as VantagePoint says the market is still up, you want to be using these tools to improve that position. And depending on your trading style and approach, well, that can manifest itself in a lot of different ways whether you’re short-term, longer-term, trend trader.
But the thing is use these tools and these predictive indicators to help guide you and execute those strategies effectively. And it really just the last week here, had about a 25, 30% advance in these areas where we’ve been paying attention. Now here’s a more recent example of we’ve had this theme of S&P 500 strong, Russell 2000, other stocks weak, energy stocks weak.
Pretty broad roadmap of where should we be even looking for opportunities? Well, here’s AMD with a crossover to the upside.
You see you got your neural index bullish. Out of 10 days here, the neural index is down for one. So you see about a 90% accuracy rate there as far as that short-term forecasting, but very clearly here the trend very much consistently to the upside. You’ll only be buying here, taking profits on longs. And then again, you see how these predicted lows come in and help guide you along the way if you’re into doing that shorter-term price action. That may be adding to a position. That may be just a core sole position for the day.
But the point being that here’s where this gets on your radar and you understand now’s the time to get long whether we’re going to breakout like BioNTech the way that it does. Well, that’s what you’re going to have to see, but you want to make sure on the right side of the market for that. And here you see a 29% rally in just the last nine trading days. Another 25% move just in the last four or five trading days in there in BioNTech.
Here’s Harley Davidson though and this has been emblematic of the broader markets. And some of the issues here is that you really need to pick the stocks you’re getting involved in. The Russell has not done well. There’s a lot of stocks that are weak. There’s a lot of volatility in the markets and you want to make sure that portfolio is positioned to benefit obviously on markets that are going to move higher, but also even hedge the portfolio. So that if we see that volatility like we saw a couple of weeks ago in the S&P when crude oil went lower. And again, those intermarket relationships, crude oil dragging down the broader markets and seeing just broad-based volatility come through.
Well, this is where you can beat peppering shorts onto the portfolio to hedge potentially some of your longs that probably have a lot of volatility and are moving quite a lot each day. But if the S&P starts to slip or things go lower, you’re going to have these things that really benefit as well. And so here’s Harley Davidson the past month we brought this through, but just the past couple of weeks here, again, with the forecasting of saying, “All right, well, if you’re looking for an area to short, short up at predicted highs, target predicted lows.” You’re able to make some money there and do a lot of interesting things again for the portfolio as far as putting on those hedges and really insulating the portfolio from all sorts of volatility.
But we can go ahead and take a look at the overall move here, about a 15% move to the downside. Obviously, shorting stocks especially a little bit more difficult. You get these kind of big up smooths here, but very clearly you see we talked about this last week coming up to the previous predicted low, a lot of volatility. But you don’t want to be going along here and if anything, again, short, take profits on shorts. And that’s made you a lot of money and keeps you on the right side of things so.
A nice move there and Harley Davidson and here is Callon Petroleum. And this is where you really see those intermarket relationships really start to bite. So that’s where crude oil really starts to make a big move lower. And what happened again most recently in crude oil? We had that recovery. Yeah, crude oil recovers and run sideways, but these stocks are in no position to be a buyer. And it’s been very clear that if you’re looking for places to maybe get that exposure to short oil or energies, this is the place to do that. And so you’re seeing just an absurd amount of volatility now, but that’s because you’ve had an absurd drop here of 16% in a day.
So now things are really shaking around and moving, but clearly you can short the market, trail your stops, and you’ve been able to benefit off of that intermarket relationships of crude oil playing out and certainly hurting energy stocks. But having that overall effect of weighing on stocks. And so you’ve seen the S&P kind of grind higher. It’s doing all right. You’ve seen the S&P and these energy stocks just get crushed. And so when you see energy and oil start to pullback and sell-off, it tends to have a pretty strong correlation with stocks and things pullback as well.
Molson Coors and these beverage manufacturers are another place. Financials, there’s some extent, some of those areas weak as well. But you have these very specific areas to be looking for weakness. And then you can go in with VantagePoint and benefit off of the short-term forecasting. So we look at some of this like what happened in energy is a big thing that’s happened over a couple of months, but it’s really down to the short-term forecasting. And that’s why I bring in these predicted highs and lows because if you can get those shorts on early as a trend trader and you’re able to use those profits to manage an existing opportunity.
If the market’s going to turn higher, well, VantagePoint’s going to come in and your crossovers are going to come to the upside and it’s going to say don’t short the market. If anything, potentially maybe start going long. But clearly here shorts have been the appropriate way to go and you see just month after month after month you’ve got some really good trading here, and this stays on the radar. So while some of these other things in the portfolio maybe breaking out to the upside, you have these things that are a little bit more muted and not very exciting. But if you’re taking some profit, they’re making you some money and you’re taking these pieces and building on that equity and hopefully you’re having the account size grow.
So again, just really kind of a review episode here of our Hot Stocks Outlook. And going over some of the themes that we’ve talked about over the past couple of months, but those themes haven’t really changed much. It’s still S&P strong. Russell really volatile, not the place you want to be. Energy stocks, certainly not the place you want to be. And that makes a much tighter roadmap of, “Okay, let me use VantagePoint. Know the areas where I want to focus and then let the forecast guide me so I can get the most out of the trade management and your style of trading.” So once again, this has been our Hot Stocks Outlook for August 6th, 2021. Thank you all for watching, best of luck out there and bye for now.
