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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.
Hello again, traders and welcome back to the Hot Stocks Outlook for December 23rd, 2021. I hope you all are having a great week out there in the financial markets. As always, plenty to cover here today. So we’re going to start out with shares of IBM, which we looked at last week. We also have PLD, which we looked at two weeks ago. A couple of smaller price stocks, just want to highlight the very short-term forecasting here and how can I help you in those really high volatility markets. Then we’ll look at Crocs and lastly, Fair Isaac here just to really round out some of these opportunities taking place throughout the market. So starting out here with shares of IBM and again, we looked at this last week, but what we have here is daily price action. So every one of these candles here represents a full and complete trading day and right up against that price data, you see that there is a black line and also a blue line.
Now the black line that you’re seeing there, that is a simple moving average. We refer to it as the actual simple moving average, but it’s a very common technical indicator. And all it’s really going to do is in this case, look back over the previous 10 closed prices, add those all together and divide by 10. And that acts as a good measure to let us know where market prices have been over a given period of time. But traders obviously need to be ahead of the move, know where prices are going next. And so what we’re able to do is compare that black line or that lagging simple moving average to this blue value. And this is vantage points predicted moving average, but for this to be it calculated and generated, and then plotted against the chart for the trader each and every night, vantage point is doing what’s called “intermarket analysis.” And it’s us utilizing that technology of artificial neural networks to do that.
Now, what does that mean? Well, what that means is we know that there’s important market relationships that are playing out. If you look at what happened with the S&P, Crude Oil, we can see the effects rippling through the marketplace, but that’s an over simplistic way to look at things, just eyeball, a Crude Oil chart or eyeball the S&P when there’s very important information that can be extracted, important clues about future price action. So what the software is able to do is understand how IBM is affected, not just by those big obvious things like the S&P 500 or big technology ETFs, but even things like individual stocks, global currencies, global interest rates, major futures and commodity markets. And so this is how you can gain some very valuable insight into what’s likely to occur next.
And that’s where artificial neural networks are very good taking it in huge amounts of data, synthesizing that data, and using it to really tune a prediction. So when we look at the predicted moving average, well, that’s a prediction of average prices. Well, if we go to the bottom of the chart, you’ll see this bar that goes from green to red, back to green. This is also an indicator that’s generated via that technology, that neural network approach looking at those inner market relationships, but it’s tuned differently. It’s tuned to only look ahead 48 hours for short-term strength or weakness in the market. And the point is, is that over those 48 hour periods, it generally gets us right over four out of five times, up to 86, 87% accuracy across all the markets. But we can combine that with vantage points, other predictive indicators.
If you look at the very right-hand side of the chart, you actually get a predicted high and a predicted low for the next trading day. So you have the overall trend direction of 48 hours strength or weakness forecast. You’ve got this average prices to use while you’re in the trade, but also an intraday predicted high and low level where you can set limit orders, profit targets, again, whatever your strategy or approach calls for, to help guide you to make better trading decisions. So when you understand that look, IBM is a market that we want to participate in, it’s got a bullish trend. We can use these forecasts to guide our behavior in the market. And every week I keep bringing things like this, where all the price action is bullish. So you go right up to the predicted high, and it’s the next day where you boom, right down that predicted low and the trend continuing.
So you’ll get those days where you already know that level is there. The previous day it’s telling you expect market to trade lower and everything gets back on track. So as long as you have your risk management to deal with pretty basic volatility over a couple of days, you see here in shares of IBM, we’ve got about a 10% rally, but what’s been happening over the past week here? If you have these forecasts and you’re using them to make your trading decisions in going into this week, a pretty tricky market. Do you want to be buying? Do you want to be selling? Well, the vantage point forecast saying, “Look, buy the market down here, shoot for the predicted high.” And already this week benefiting off of the strength where you’ve identified that there’s bullish price action and the market is in an up trend.
Now, here is PLD. We looked at this a couple of weeks ago, and it’s so important to understand not only one in those markets are shifting and when you should get involved in a trade, but when to hold onto that position. So two more weeks have gone by here. Just a tremendous amount of these predicted lows being hit. The market just keeps moving higher within literally a couple trading days. You see again, here down to that predicted low, immediately higher, down to this predicted low, immediately higher. And again, just the past couple of weeks here, this predicted low hitting that predicted high, this hit a low, you’re just hitting these levels and being able to take these pieces out of the market in a broader market. If you look at the S&P that’s been a very difficult market to trade.
So when you can identify, “Hey, where is their strength? Where can I go ahead and get these long positions on the portfolio, manage those over this time period?” But also understand when those things shift. If this blue line crosses below the black line, well, that’s vantage point updating and guiding you and letting you know, “Hey two weeks ago, it made sense to keep trading here on the long side, but things can shift.” You see, you had the neural index bearish over the past few days, and you’ve gotten some movement below the average, moving down towards the predicted lows. And it just makes it easy to be prepared for the trading day and be really ahead of all this. Now, I know there’s a lot of different traders out there, a lot of different approaches. And so I wanted to bring through a couple of smaller price stocks, and these things are generally going to have a lot more volatility to them and move around on a higher percentage basis each day.
And that’s why it’s that much more critically important to get good entries. So you don’t have to run huge stop losses, where if you get it wrong, you’re losing a lot of money. And so here you see ZYNGA, we get this cross over to the upside and pretty much you can see very clearly that forecast is bullish. It’s saying, “Look, blue line over black line.” But you’ll notice right here, neural index gets bearish. And those subsequent 48 hour periods are where we move below the average, we’re going to be moving towards predicted lows, but you notice that blue line is still above the black line. It’s still saying, “You still have all this green here. You may see some weakness from this point on, but make sure that you are really adapting with what’s going on and what the vantage point forecasts are providing for you.”
So you see here with ZYNGA, if we bring up those predicted highs and lows, this is what’s super interesting about this. So here’s essentially a potential day trade here where you buy the low shoot up towards the high. We go here, you see the neural index saying, “There’s some weakness.” But here’s what’s so interesting about this is on that trading day, neural index is saying “weakness over the next 48 hours”, but you got to remember your predicted highs and lows that you had on this trading day as well. At the end of that trading day, we’re also saying, “Look for the range to come lower.” And you see what happens, the market trades a little bit lower. Again, you see here, we are hitting this predicted low the next day. And these levels are being very important for you to help guide you to make the best of this market.
So this is a very cheap stock. So you got to understand if you’re buying something even down at these predicted lows shooting to a predicted high, there’s 2% move off of these lower portions though, you’re getting some pretty decent pops out of this area and certainly an area in the market where you’d only want to be long take it’s on longs. And I know it’s not an exciting move. That’s not the point is to show this 20, 30% move. We see those with things like PLD and those things come through all the time. But the point is just, it’s not about even that crossover, but it’s about the adaptability of the software to let you know, “Hey, things are shifting based on your strategy and your approach, what do you need to be doing to make sure that you don’t get yourself in trouble and have the best opportunity to pull some money out of the market?”
So here’s, SunOpta another very cheap stock, but you see the similar situations of the software doing a great job. You only want to be long here, blue line above the black line. You see, we get this dip here in the market, but we’ve got that guidance from predicted highs and lows to help us the whole way. So again, even after that trading day there, the predicted highs and lows like they are here, were telling you expect the range to move lower here. Try to be a buyer down here or down here or down here, if you want to go ahead and get long. So again, just trying to highlight these different examples where maybe you are trading smaller penny stocks or doing their own thing.
Maybe you are looking at the S&P and trying to gauge how you should structure that portfolio. But again, it gets very clear of highlighting out where those spots, where you’re going to focus on, where are some spots where potentially you can have very small positions that make a lot of money on a highly volatile sort of market, and then where are the stocks that we just need to avoid and wait for vantage points forecast to say, “Okay, well now it’s time to go ahead, get involved and make some money.”
Well, here in CROX, we see it’s another one of these situations that, this is not IBM, this is not PLD, this is not an area where we want to focus in. Maybe sometime in the future, you’ll get that cross over to the upside. But very clearly the markets have recovered here. Well, CROX really hasn’t right. It’s the sellers coming in at these predicted highs, day after day after day. Here, you see another one of these, you come up to the predicted high, but the trend is still very much down and you would want to remain short in that market.So things have recovered quite well. We’ve seen S&P come back and flirt with the highs again, but it’s such a mixed market. There’s very clearly these areas where you absolutely need to avoid and some really nice opportunities open up, even at some longer term lows and you see the market doing quite well.
Speaking again, as some of these longer term lows, here’s Fair Isaac. So the financials got beaten down. We’ve started to see things turn around like Visa, MasterCard. Here’s Fair Isaac here, crossed over to the upside and you see the strength of the forecast. And while this is an expensive stock, you could just think of it as $3 stock or a $4 stock and trade it the exact same way and understand that, “Okay, well, if I want to get long, how do I want to do that?” And you see, you don’t quite get there, but this one just about perfect. Getting that entry in the market just immediately moving higher entries here, sideways price action here with your neural index. You notice how the market goes sideways from there. Up trend here where the neural index is bullish. Here’s your sideways period. And here’s your vantage point predicted lows, helping you with that sideways period so that you can make money as things progress and continue on. So again, really nice opportunity here.
It doesn’t look like much, because it’s only a few days and the charts kind of scale, but that’s a 12% move and shares of Fair Isaac in the past 12 days. So again, very expensive stock, but 50 shares there is going to have you up $2,500 or so. So really nice opportunities here, spread out through all the market, but you got to be careful. There are those areas like the S&P 500 and some of these things that have pulled back violently are not great areas where you want to be going ahead and get it long.
But there are areas opening up all over the place that have been really nice opportunities here. And we just have to keep evolving and changing with it. It we had that period in October, things were very bullish. We had things pull back and then you got to reset find things like IBM, potentially PLD never even turns around and never even get to week. So we’ll go ahead and leave it there. But once again, this meant our Hot Stocks Outlook for December 23rd, 2021. Thank you all for watching best of luck and bye for now.
