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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 http://vantagepointsoftware.com/?s=$MCD”>McDonald’s ($MCD), http://vantagepointsoftware.com/?s=$HAS”>Hasbro ($HAShttp://vantagepointsoftware.com/?s=$HAS”>), http://vantagepointsoftware.com/?s=$NVDA”>NVIDIA ($NVDA), http://vantagepointsoftware.com/?s=$HAL”>Haliburton ($HAL) and http://vantagepointsoftware.com/?s=$LULU”>Lululemon Athletica ($LULUhttp://vantagepointsoftware.com/?s=$LULU”>)
Speaker 1:
Hello again traders and welcome back to the hot stocks outlook for November 4th, 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. We’re really going to go through a lot of the forecast. There’s been a lot of news and volatility in the markets. It’s really helpful to look at the nuances of these short term forecasts. So if you haven’t already, make sure you go ahead and click on the link below in the description and get a live demonstration to learn more of those specifics about how this technology and these tools are going to help you make better trading decision through the use of these predictive indicators. So we’ll start out, we’ve got shares of McDonald’s. We’ll go through a whole lot of chart there. We’ll revisit Hasbro. We got Nvidia here, Halliburton, and lastly Lululemon here.
http://vantagepointsoftware.com/?s=$MCD”>McDonald’s ($MCD)
But a really good example of how all these tools work in shares of McDonald’s. So what you’re seeing here is daily price action. So each one of these candles that you see represents a full and complete trading day. And so right up against all that price data, what you’re going to see is that there is a black line and also a blue line. Now what you’re seeing with that black line or that black value on the chart, that is a regular simple moving average, right? So this is a very common technical indicator, and in this specific case, what it does is it looks back over the previous 10 close prices. It’ll add those all together and divide by that number. So what that does for traders is smooth out the existing price action and let us know where market prices have been over a given period of time. But traders need to be ahead of that shift in the marketplace.
And so what we’re able to do is actually compare that black or what you might call a lagging moving average to this blue proprietary predicted moving average. And for that number, essentially that price prediction, for that to get plotted on the chart for the trader each and every evening, this is where the technology of artificial neural networks come into play. And so specifically when forecasting for what we call the target market here in McDonald’s, the software is going to be able to look at other known markets that are known to drive and influence the future price of shares of McDonald’s. Well, that can be things like the broader markets, like the S&P 500 or the Nasdaq, but a lot of traders don’t really appreciate how much things like the dollar index or crude oil prices are affecting trades within their portfolio. But what the software’s able to do is understand a lot of very subtle relationships, whether they be in individual stocks or even ETF groups.
So you’re getting this very holistic approach looking at the global marketplace and understanding how McDonald’s is affected through short term price. And so what it does is it’s able to take all of that information and like what neural networks do is take in a huge amount of data, analyze that information, and then generate true price predictions of where the market is likely to move going forward. So rather than having tools that just look back at the past and reconfigure price, you have a forward looking predictive tool. And what’s happening here is that that neural network technology is tuned to solve different problems. So what we’re looking at here with this predictive moving average, it can alert traders to these very important trend shifts in the marketplace. And you see how when you get this blue line crossing the black line, you get this consistent decline in prices until such time that that blue line crosses above the black line.
See about an 8% decline to the downside here, and as prices move higher, well, we’ve gotten a very big shift up about 16%. But that’s not the entirety of the forecast, right? That’s going to help traders understand those shifts in the marketplace and get those very early entries for before a market starts to make its move. But if we look at the very bottom of the chart here, you see there’s a bar that goes from green to red and back to green. This is another indicator and it’s derived via that intermarket data and that neural network approach but it’s tuned to solve a different problem for the trader. And in this instance, it’s looking ahead 48 hours and predicting short term strength or weakness. Again, via that neural network intermarket data process. And so when we look very closely at these forecasts, well, you can see that as that blue line crosses below the black line and the neural index is bearish, you may get these periods where the neural index goes bullish.
And you may get strength over that subsequent 48 hour period, some higher highs over that price data. But the overall trend is still very much to the downside. You again see when you get towards the bottom of the move, the neural index starts to perk up letting you know that there’s strength over the subsequent 48 hours. But you want to make sure that you’re on the right side of the trend as well and make sure a lot of that stuff lines up here. So to really round out this forecast, right, you’ve got your predicted moving average, your neural index at the bottom. You’re also provided a predicted high and low for every single trading date before that trading day occurs. So what I can do is actually bring up those predictions right up against the actual market data. And so you see that when you understand, hey, McDonald’s is in a down trend.
Where should I be looking intra day? And remember, before the trading day occurs, all of these levels are known. So if you’re wanting to short the market, you have very exceptional levels to go and understand, okay, well I can keep expressing that bearish position, but at such time that that blue line crosses above the black line, which you see it does here on the 10th, well now you’d say, “Okay, well maybe I should look to cover these positions down towards these predicted lows.” And conversely, look to go ahead and take a long position. You see, you get this gap down and the market is storming higher, but a lot of strength from this neural index and really from these tools throughout the duration of this trade. So what’s important to understand here is very briefly, as we move through these next charts here, this indicator gets this right essentially four to five times. Upwards of 80 plus percent accuracy.
And that’s through Fed announcements, that’s through earnings reports, really through all these important things that occur in the market, but you don’t want to get distracted and really lose track of, well, where are the current market participants set up and how should I look to exploit the buyers or the sellers in that trading group? So let’s go ahead with, again, that sort of whole chart. Understood, going through all the indicators, well, let’s look at Hasbro. And we keep looking at some of these opportunities that have not pivoted to the upside. We’ve seen a lot of strength, there’s been a lot of volatility, and you don’t want to be on the wrong side of that strength coming in.
http://vantagepointsoftware.com/?s=$HAS”>Hasbro ($HAShttp://vantagepointsoftware.com/?s=$HAS”>)
But here in Hasbro, we keep highlighting that this is a very bearish trend. The blue line is still below the black line, and I just want to highlight the past week.
So we keep bringing this in week to week, but as far as the vantage point user understands that, okay, well, there may be some areas like McDonald’s to take some bullish exposure to the market. We’ve talked about energy companies as well. Well, where are some areas that are still bearish? Where might I want to get bearish exposure to the portfolio? And you see here over the past week, well, up here towards these predicted highs are excellent levels to set a short position and then walk that forecast forward, right? You’re going to get these updated forecasts every single day that will let you know, hey, is the trend still down? Okay, well, you can keep expressing those short positions. But if that blue line crosses above the black line, you’re going to understand that something has shifted and changed and therefore your behavior, your trading, should change.
So here about a seven and a half percent decline in just the past three trading days. I mean, at certain points it had gone probably down eight or 9% just in the past few days there from that predicted high level forecasted from the vantage point software here. So again, let’s just go ahead and move forward.
http://vantagepointsoftware.com/?s=$NVDA”>NVIDIA ($NVDA)
Here’s Nvidia. It’s a very popular company. Well, over the past couple of weeks, you’ve seen an Nvidia cross over to the upside. And look at all this strength from the neural index, the blue line over the black line, and then we can look at those predicted highs and lows. So traders who have these tools understand that, hey, down here at 120, that’s a good opportunity in Nvidia. The next trading day, 121 or so, right, here on this gap down. Right here. Here’s actually the Fed day and you see that the market goes right to that previous predicted low. And then you see pretty much filling that predicted range almost perfectly the next trading day.
So this is how these tools are going to help you and this is why I’m going through this at such a granular level here. Is that when you understand what’s going on in these markets, right, it’s like, sure, there’s been a 11% move higher in Nvidia, but there’s been a lot of very exciting short term trading going on within these windows that traders can take advantage of. So this is very important stuff. You see more recently with that Fed announcement, you want to know that that volatility is there [inaudible 00:08:18] getting that neural index bearish, and you see that yesterday’s predicted high. Great area to take some profit, try to buy back at lower levels if you still want to be long. But these are the sort of adjustments that make a world of difference and allow you to hold on positions and potentially make even more than that 11% as the market’s moved up over the past couple of trading weeks.
http://vantagepointsoftware.com/?s=$HAL”>Haliburton ($HAL)
Now we’ll shift over to energy stocks. And so this has been a running theme for a long time here as the rest of the traditional market. We’ve seen Amazon, Apple, a lot of these places that get a lot of attention are really not where you want to be trading. And there’s much more straightforward opportunities in shares of Halliburton, we’ve been looking at Valero Energy, and it’s been a much more straightforward ride up. So here you see this blue line crossing above the black line, and you just see the amount of strength in some of these areas where there’s a lot of separation between that blue and black line. If we see the neural index here, you’ll get these periods where the market goes sideways, but the market isn’t reversing, right? The overall trend is still up and this is where traders can then come in with the help of those very short term predicted highs and lows and understand that, okay, well if I want to be a buyer in Halliburton, where do I want to be looking over this period of time?
And so what I really love about VantagePoint is its ability to, even around volatility, here again, is that Fed announcement and there’s things moving around. It does a really great job of updating those forecasts like we saw with Nvidia, right? Things shake around, but then those predicted highs and lows do a good job of letting you know what levels should I be paying attention to? And conversely, what sectors and areas of the market should I be paying attention to? So not only in the long term can you be around for this 37% rally and all these energy stocks moving higher, but in the short term, even if the markets run sideways, you get the benefit of these predicted highs and lows. So you see here, just over the past couple of weeks where not much going on, but plenty of great opportunities to buy at the lower part of the range here and express that bullish position where you’re at this point trading with profits and continuing to express that trade.
http://vantagepointsoftware.com/?s=$LULU”>Lululemon Athletica ($LULUhttp://vantagepointsoftware.com/?s=$LULU”>)
Lastly here, Lululemon. And again, just want to bring in a lot of these diverse opportunities to highlight the forecast. So regardless of what market you’re going to trade, these forecasts are going to update. And what you may see back here on 10/19 may not be what you see going into 11/4 and the current trading end of the week here. So here with Lululemon, again, you see this crossover to the upside, and we’ve seen a lot of strength in the market, right? The past couple weeks … It’s not like there’s not areas where there’s no strength but you clearly want to go ahead and hedge that where there’s excessive weakness and make money on both sides of things. But here in Lululemon, you see you get this crossover to the upside and notice how the neural index blips down to a red configuration there. And yeah, you’re getting lower lows over the next 48 hours, but the overall trend, I mean, you actually get more separation between that blue and black line.
And clearly you’d only want to express that long position taking profits on longs, and then every single day, the benefit of these predicted levels to let you know where should you be looking to express that position? So again, here’s Fed day. Sometimes you’re going to get more [inaudible 00:11:26] out of days like that. But look at this updated candle here to help you make adjustments, make the most of this trading opportunity and keep moving forward through time with the help of these predictive forecasts. So again, a really nice pop here in shares of Lululemon but it’s more about the trade management. So you get about a 11, 12% rally, Fed announcement. And again, you need to make those trade adjustments so that when things go well, you’re making a lot of money, and when things break down, well, you’re probably just giving back some of the money that you’ve already made because you’ve been responding at the right times with these forecasts.
So I’ll go ahead and leave it there. Once again, this has been the Hot Stocks Outlook for November 4th, 2022. Thank you all for watching. Best of luck and bye for now.
https://www.vantagepointsoftware.com/blog/vantagepoint-hot-stocks-outlook-for-the-week-of-november-4-2022/”>