Register for a Free Live Training
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 TakeTwo Interactive ($TTWO), Quest Diagnostics ($DGX). GATX Corp.($GATX), Evolus($EOLS) and Lennar Homes ($LEN)
Hello, again, traders and welcome back to the Hot Stocks Outlook for October 22nd, 2021. Hope you all are having a great week out in the financial markets. And as always, plenty to cover in today’s outlook.
We’ll start out with shares of Take-Two Interactive. We also have GATX, a transportation stock there, Quest Diagnostics, which we looked at last week, Evolus, and lastly, Lennar, really a lot going on in the home builders and really the broader stock market, which is really what we’ve touched on over these past couple weeks. Seeing a lot of strength spread out in different areas of the stock market.
But let’s start here with shares of Take-Two and what we have is daily price action. All of these predictive indicators that we’re going to highlight within VantagePoint work off of end of day data, and therefore each one of those candles is a complete trading day. Notice that there is a black line and also a blue line right up against that price data. Now, the black line that you see there, that is a simple moving average or what we refer to as the actual simple moving average. It’s a very common technical indicator, and that it’s just going to look back over the previous 10 closes, in this case.
Add those all together, divide by 10, and it gives you a good rolling moving average. What that does is smooth out the existing price action. The problem, though, is all of that data is really derived from the past. And as a trader, we don’t really need to know where the market has already been, but we need to know where the market is headed. What we’re able to do is pair that lagging moving average to that simple moving average, it lets us know where market prices have been, and compare that to this blue predicted moving average that’s generated via VantagePoint’s neural network technology.
Now, for that value to get plotted against the chart and essentially be a prediction of average prices going forward, VantagePoint’s technology is doing something very important, specifically for the target market that you’re trading. Now, Take-Two is going to share some very important market relationships with things like likely the NASDAQ, very important ETFs, as well as the broader markets like the S&P 500 and the Dow Jones and things like that.
But it’s going to have some very important relationships with even things like currencies or interest rates and even individual stocks spread out throughout the market. What this technology is able to do is understand those market relationships, whether they be inverse relationship, positive correlations, leading or lagging relationships, and use that to generate future price predictions with very high level of accuracy.
Rather than using tools that simply look back and reformulate price and where it’s been, you actually have a tool that’s utilizing this data, that tool of artificial neural networks to actually forecast future prices. What’s going on is we have this comparison between that blue line and the black line. And whenever we see that blue line moving above the black line, well, we can suggest that average prices are going to start moving higher. And therefore, you might want to take a long position.
Now, in addition to that predicted moving average to help traders with the overall trend, you’ll notice at the very bottom of your screen you have this bar that goes from green. You see it flips from red to the middle part of your screen and back to green. This is a highly accurate short-term indicator that gets updated again at the end of every trading day. But this indicator is very short-term. It’s not telling us average prices like our predicted moving average. It’s telling us short-term strength or weakness just over the next 48 hours. You can think of that as two trading days.
When you can combine that over overall strength of the trend and say, “Okay, I know we want to be long here,” but you will see those periods where the market may want to run sideways or pull back and consolidate. And that’s where the neural index can help you be ahead of that. Now, at the really tail end of all this, really wrapping together all of these predictive tools, you’re also provided a predicted high and a predicted low at the conclusion each trading day. We can see that we have that most recent forecast right there.
But what we can do is actually go back and look and see how accurate all of those predictions were once we actually see what occurred during the market day. If I hit F5 on my keyboard here, it’s actually going to allow us to see all of those predictions right up against the market data. We can see that this is the most recent prediction. But if we go back to where that crossover came through, you can see how really the combination of these tools provide an extremely accurate roadmap to guide traders on how they might want to trade.
If you’re trying to buy the market, well, certainly these predicted lows are going to stand out as nice levels to have a limit order. And you see how the very little amount of volume that likely takes place down at those levels, you’re able to get a position, get it on, and really benefit as the trend continues. Now, you’ll notice that after this trading day, the neural index goes bearish. That doesn’t mean the trend is over, but it does mean that, okay, we’ll expect the market to show some weakness over the subsequent 48 hours and certainly look towards the predicted lows to add to a position.
You’re not going to get to the predicted low every day. But certainly if there’s weakness, very likely to get down there. And if you want to be a buyer anyway, well, that would be a good chance to buy on some weakness. Now, overall, there’s been a really nice move here. And certainly in a market that is strong and trending, this may continue trending. But what you’re going to have is predictive indicators and tools that are going to update each and every trading day to really give you that guidance to manage the opportunity and make the most of that opportunity.
After this, market’s moved up about 13%, but there’s been numerous opportunities to add to the position, take some profits along the way, and really make the most of really bullish market environment. And of course, if you’re looking for strong stocks where we’ve seen a lot of things pivot, certainly these areas that are leading the way might not be bad areas to go ahead and trade. Now, here’s GATX, a transportation stock, the exact same approach. Now, we have this crossover all the way back towards the end of September, blue line crossing above the black line.
But you’ll notice that for the majority of this chart, that neural index has remained bullish. They’re in the green position outside of here, and we see this period where the market, in fact, runs sideways for a good bit of time. But overall, the trend very much to the upside. You see things really start to gap and move, and you’d, of course, want to maintain that position over the course of this entire move. Of course, as the market starts gaping, you need to have that position already in place.
Again, we can look at those predicted highs and lows and say, okay, well, as a trader saying, all right, this might be a trade or a market where I want to be paying attention, not just for these early trading days where that crossover comes through, but as the market trends and continues. You see you have that guidance in roadmap that says, okay, well, if you want to be buying down at these levels, you can certainly take some short-term profits and you see you’re getting these bigger moves to the upside and breaking of the predicted high, but a extremely accurate roadmap to make good decisions as far as your overall trading.
It gets to this point of over the past couple weeks been highlighting that, hey, we’re seeing some strength in the markets, right?
There was a period where things were getting very bearish, and we’re highlighting a lot of the weakness in the market, but things shift. Here you have GATX up about 10.8%, but Quest Diagnostics will be a very good example of what the broader market has done.
This is what you’re able highlight and detect with tools like VantagePoint, because you’re not just applying them to one market at a time, but you’re seeing the broader market when you’re applying these tools to all of these different markets and actually using some clever tools like the IntelliScan feature to actually have the software present you to where the market’s shifting, where are new opportunities opening up. We looked last week at Quest Diagnostics and actually high it that it actually looks like there’s some strength coming into the broader markets here.
We got our neural index bullish, and we should expect some strength coming through. Well, you see that that crossover has come through to the upside, but look at the most recent forecast from Quest. You can see clearly this crossover saying no longer would you want to be shorting the market.
Certainly this was a good market to short, as we got that weakness in the NASDAQ and broad market weakness really, but things have shifted. And now you have really this trading day standing out as the day to go ahead and take a position. And to help you with that trading day, you’ve got a predicted high and low range here that says, all right, we’ll look for this market to move down towards this predicted low and be a buyer. And you see that very clearly there’s strength in these markets. If you were shorting markets, very clearly the software is saying, look, the short-term neural index is showing you some strength.
We’re ahead of that broader strength coming through. But once the crossover comes through, certainly. Maybe not even cover your shorts, but look to reverse the position, take a long. You see this market moving up about 3% just in the past few days and pretty aggressively so with that market strength coming through. This has just been a broader theme that we’ve seen across the marketplace and something that you can get ahead of with VantagePoint. And that’s the whole point is having these predictive tools and these predictive indicators to recognize these trend shifts and changes in the marketplace.
We can come over here to really a small penny stock, just highlighting how it doesn’t matter if you’re trading some of these larger companies or some of these small low priced stocks. But it’s here you see on 10/12, you’re getting that crossover to the upside, blue line crossing above the black line. You’ve got this roadmap going forward that says there hasn’t been any weakness in this market, right? Use your VantagePoint predicted highs and lows to be that roadmap and say, okay, well, if you want to be a buyer, well, we can see two days that really stand out that would’ve gotten on your radar.
This sort of thing, what’s really important to understand about this is that level is known before the trading day ever occurs. You can have limit orders just waiting and resting at these levels. Maybe your limit orders don’t get filled down here, but they get filled here. And that usually works out pretty well because you don’t want to be chasing the market on this day or this day when you can have an order waiting down here. You see the volatile come in and, again, about another 10% rally from those predicted low levels. But very clearly here trend very much the upside, 14% rally just in the past six trading days.
Again, we’ve seen a lot of things start to shift here along with those broader indexes and just general strength. One of those areas is home builders. Whether it’s Pulte Homes or KB Homes or Lennar here, here you see on 10/7 Getting this crossed over to the upside. A little blip here in the neural index going bearish. But you see out of the one, two, three, four, five, six, seven, eight, nine, 10 days here, strong one. It’s probably a 90% accuracy as far as that neural index telling you where this market’s going in the short term and clearly the trend is up.
But then we can be bring in those very short-term predicted highs and lows. Those limit order levels that you know have your orders waiting at some of these levels to get involved with markets. We actually don’t quite hit the level there. But early on in the trend, you want to be getting that position for the trend and then managing that position. You see shares moving from about 93.50 or so a share popping over a hundred. This whole general area, just home builders, it’s been very clear that, yeah, this is potentially something you want to go ahead put on the radar.
You see here shares up about 9% in Lennar just in the past eight trading days. There’s just been these tremendous opportunities, but it’s all about really using some of the tools here to recognize the broader market shifting. If I go ahead, I can open up the IntelliScan feature and what you can see here are a lot of the tools that will allow you to… You can sort this by one day to look for fresh crossovers and new opportunities coming through. You can sort it to look for markets that have been in existing trends for a period of time.
And you can just use these tools to find the types of trades that are going to fit your trading style and your approach, whether that be shorter term with predicted highs and lows, longer term with trend, and really just staying in line with what you should do with the market. Because if the trend is up and continuing up, maybe you should hold onto that position and let some of those winners ride. We’ve seen a lot of these trends especially in the energies play out and be some very profitable shorts and moves if you’re able to tack those especially early on in the market shift.
Once again, this has been our Hot Stocks Outlook for October 22nd, 2021. Thank you all for watching. Best of luck out there. Thanks again and bye for now.
