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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 AMC ($AMC), Oracle ($ORCL), Walt Disney ($DIS), New York Times ($NYT), and CubeSmart ($CUBE).
Hello again, traders and welcome back to the Hot Stocks Outlook for May 20th, 2022. Hope y’all are having a excellent week out there in the financial markets. And as always, plenty to cover here in today’s outlook. So we’re going to start out with shares of Oracle. We’ve also got New York Times, AMC, Walt Disney, and lastly, CubeSmart here.
And I really want to encourage traders to go back and watch the previous months of video content. Going back to about April 22nd, you’ll see how we identify a lot of this weakness coming into the market and seeing that persist. Now I do want to make it known there’s been a very important shift in the dollar index and that plays out.
And this is where this software is able to take that into account, understand and then forecast future prices going forward so that trader can be ahead of the next move. So looking at the most recent forecast here with Oracle, what we have here is daily price action.
You can see this is going all the way back to the beginning of April, April 6th. And so what that is right up against all that price data is you’re going to notice that there is a black line and also a blue line value there. So the black line that you’re seeing there, that is a simple moving average. So it’s a very common technical indicator.
And what it does is it smooths out the existing price action and let us know where market price has been over a given period of time. In this case, what it does is it looks back over the previous 10 closed prices. It’ll just add those all together and divide by 10 and you get the smoothing of that price action.
But traders obviously need to be ahead of the next move, right? We need to be ahead of all this weakness that’s come in over the past several weeks. And so what we’re able to do is actually compare the value of that black value, that lagging moving average to the value of this blue line.
And for that value to get calculated and plotted against the chart, that’s where the technology of artificial neural networks come into play. And so this is what we refer to as the proprietary predicted moving average. And again, for that number to get plotted, this is where this technology is coming in and looking for intermarket relationships that are known to drive and influence the future share price of Oracle.
Now that can be obvious things like technology ETFs and other technology stocks, but there’s going to be some important market relationships and things like the dollar index, things like crude oil prices. All these things are critically important. And so this is what the software’s able to detect and factor that into these future forecasts, to give you a huge edge on where things are headed.
So here in the case of Oracle, we see that blue line crossing below the black line. It suggests average prices are expected to start moving lower. And you see that over this month and a half of time, well, we’ve certainly had not just weakness in Oracle, but tech stocks broadly.
So if you want to short the NASDAQ, the forecast look very similar. But you can set up that game plan so that you really understand, okay, well, do I even want to have be net short, net long over this time period, and specifically, where should I be looking to enter into opportunities? So that’s just the overall trend forecast though.
And we’ve seen so many of these forecast move to the downside, really alert us to all of this weakness coming into shares. But you’re also given many other indicators that help solve different problems for the traders, right? So if you look at the very bottom of the chart here, you’ll see this bar that goes from green to red, potentially back to green.
And this gets updated each and every trading day. And it’s a very short term indicator that’s utilizing those neural networks to accurately predict short term strength or weakness in the market, just over the next 48 hour period. So you can think of that, of trying to solve that short term question of, should I expect a little strength or weakness here and what makes sense as far as your directional bias and things like this.
So after that, we can say, okay, well, in addition to that short term strength or weakness indicator, you’re also given a predicted high and a predicted low. So this now being not over 48 hours, but intraday, as far as helping you, as far as the overall range. You can set limit orders, profit targets, all of these things that sensibly fit into your trading strategy and your system and your approach.
And so we see here, if we go ahead and we can look at all of those forecasts as predicted highs against the actual market data. So when you have a forecast like this, not only in Oracle, but seeing all these tech shares start to turn lower all through really the month of April, well, you understand that if I want to get short on this intraday time period, well, that’s a great place to do it.
But when things happen in the market, and you see we get a little bit more bullish here, you see these forecast update. And this is very important to understand that at the end of the day close, when all the global markets have closed down, currency markets, commodity markets, this is where the software does its analysis and takes all of this into account.
What did the S&P do? What did the NASDAQ do? What did these other related stocks do? And it takes all of that information. And it’s extremely adept at updating and adapting to whatever is occurring in the market and pulling out some valuable information from the clues derived via that technological approach here.
So you just see these numerous entries on the downside to potentially get that position short. But there’s many places in the market where you can also be hedging your portfolio, right? Taking long positions, in addition to areas where you’re taking short positions, adding to those positions.
A lot of different ways that traders can decide to manage this stuff.
But let’s go ahead and just move forward to here’s New York Times. And we looked at this really a couple weeks ago. And we’ve had a little bit of sideways action in the market. And this is why this is so important because this has happened before in New York Times, right?
Little sideways here, sideways here, sideways here. But you want to make sure that you don’t miss that big move. And oftentimes in those sideways periods, it’s a good time to be improving that position, right? If you know what the predicted high is going to be, or an idea of what the daily high is going to be, and you’re already short the market and you say, “Okay. Well, market’s moving higher. Maybe I can just get out of the market short at this better price level.”
There’s all these sorts of adjustments that can be made with a position. And you see how the markets can run sideways for quite a bit, but these levels do a great job at letting you know where the upper part of that range is so that you can make better trading decisions. And so if you’re trying to improve your shorts, well, try to improve those up near these predicted highs.
You’re trying to take profit on those shorts, right? Do those towards the predicted lows. And this is how, again, you can set that long or short position, manage it effectively and reduce a lot of the risk and exposure one would have to take to benefit off of some of these big moves, right?
Because while the markets going sideways for a week, if you can pull some out of it, run your stops, well, it’s very likely you’re going to be around for this 27% decline over the past month here in shares of New York Times and in a lot of different areas of the market.
So here’s AMC shares, and we’ve looked at this over the past couple weeks from requests.
And again, I just want to bring these markets through to highlight that you really got to think about your trading strategy, what it is that you’re doing. But over this time period. Is this affected by what’s going on in the S&P 500 and the dollar index and other related stocks? Well, that’s what’s happening.
And so AMC throughout the year, maybe ready to double, triple in price, but was it ready to do that in April? Well, no. And if you’re managing that opportunity, well, let’s look to short the market, take profits on shorts and use things like these predicted high levels to help manage those opportunities if in fact, you are trying to get that short position.
So you see here how we get a ton of volatility, but just look at this, all of that volatility, right? A bunch of short term traders coming into the market and look where the market closes, right at that predicted high. Now we’re gaping up, and where are we closing?
Well, right inside that range, moving a little past closing up inside the range. Here, you see that when you get this bullish day here, which the neural index is forecasting, you’re moving straight up to that predicted high right there the previous day.
I think it’s almost about perfect here. We can look at this. If you got a predicted high level of 2090, and a actual high level of 2092. And then you see the next day updates and it’s letting you know the range is moving higher. Now expect the market to move up towards a predicted high of 1377.
It certainly does that, but it closes down at 1276, right? These are big moves. And so for a trader who’s trading these markets, you really need to understand, hey, if you’re trying to get short, well, you can do that up at 1350 or so, if you’re trying to get long, you really want to look for these more reduced prices here.
And like I mentioned, there’s been some really important shifts in those macro markets like dollar. And this tool gives you the ability to see those things and shift the portfolio. And when we start to see where that dollar close comes in and all these forecast update, well, you may see some of these things start to reverse, some blue lines move to the upside.
But for the past month and a half, how have you been making money in the market? Well, you’ve had to be on the short side for very long periods of time, as the market just continues to go lower and lower and lower and lower and lower. And so we’ll see if we get again these updated forecasts every night to help traders make better trading decisions.
But the point being is that the better trading decisions have been short here over the past couple of months. And that’s been very clear, 25% decline in shares of Walt Disney just over the past 32 trading days.
Here in shares of CubeSmart, again, just another example of all the tools coming together.
Weakness in the market, okay. Well, predicted highs would be the way to look for where you’d expect some weakness to come in. We always look at these sort of days where sometimes you’ll get that popped to the previous day predicted high and low, but the software just does an excellent job of updating those forecasts and getting things back on track.
So it’s not just about even one position in the portfolio, right? You may be trading CubeSmart or AMC or the S&P 500 or the dollar index. It’s about layering in those positions and understanding that, okay, there’s been a big shift here. Well, go ahead and set some shorts, right?
There’s been a big shift in the broader marketplace through April, get that portfolio net short. And as things start to shift, and the software takes in this information and the global markets start moving around, well, new opportunities are going to emerge to the upside.
But you want to know, Hey, where are the strongest opportunities, right? Where are the forecast looking the best, and where’s the safest place to deploy that capital if in fact, you want to take positions to the long side. So go ahead and leave it there. Once again, this has been the Hot Stocks Outlook for May 20th, 2022. Thank you all for watching, best of luck, and bye for now.
