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 Caterpillar ($CAT), Ford ($F), Vulcan Materials ($VMC), Bath & Body Works ($BBWI), Hilton Worldwide ($HLT) and Apple ($AAPL)
Hello again, traders, and welcome back to the Hot Stocks Outlook for July 29th, 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 Hot Stocks Outlook. We’re going to start out with shares of Ford Motor, which we actually looked at last week. We’ve got Caterpillar and Vulcan Materials. So a little bit in the building material space. Bath & Body Works and Hilton Hotels, which we looked at these a few weeks ago, actually highlighting the market weakness in certain shares throughout the marketplace. And we’ll end on shares of Apple.
And I really encourage traders go back and review some of those previous Hot Stocks Outlooks, especially going back to about June 24th moving forward. And really understand how these tools can help you day to day make those better trading decisions, recognizing market reversals, or just day to day making better management decisions, whether you’re a short-term day trader or adding and adjusting positions.
So starting out here with shares of Ford Motor, what we have is always is this daily price actions. So each one of these candles represents a full and complete trading day. And right up against all that price data, you’ll notice there’s a black line there and also a blue line. So the black line or value that you see there is actually a simple moving average. So this is a very common technical indicator. In this case, what it’s doing is just looking back over the previous 10 close prices. It’ll add those all together and divide by 10.
So for our purposes here, it acts to really work as a baseline and let us know where market prices have been over a given period of time. But traders need to be ahead of that next move in the marketplace. And so what we want to look for is whenever that blue line crosses above or below the black line, it’s suggesting average prices are going to start moving, in this case, higher. So you see you have that simple moving average. But when that blue line, or what we’ll call that predicted moving average, moves above, it’s suggesting average prices are going to start moving up.
Now, how does it do this? Well, this is where that underlying technology of artificial neural networks come into play. And what they’re doing is what’s called intermarket analysis. And what that is, is for specifically Ford Motor, we can understand that this is going to share some important market relationships with things like the S&P 500, just individual stocks within the automotive space or not within the automotive space. You may have big commodities, things like gold, oil prices can come into play. Things like the Dollar Index or global interest rates.
And so what the software is able to do is take in those market relationships, understand how they’re likely to affect the underlying instrument or stock that you’re trying to trade, and actually use that technology to generate true price predictions of where things are likely to move. And it’s those technologically-driven predictions that are used to construct these indicators. So rather than having tools that just look at the past price action and get reconfigured, you have a forward-looking predictive tool to aid you make better trading decisions.
So in this case, again, whenever that blue line crosses above the black line, as long as it remains above the black line, it’s suggesting average prices are expected to move higher. So if we take a look at Ford Motor, we can see shares have moved up about 24% in just the past 13 trading days. Here are just a couple hundred shares there. I mean, you could obviously buy several thousand shares. 500 bucks, just an extremely small position. But here’s what’s really interesting about all this is you have other tools that can help you solve different trading problems. So while you’ve gotten a 24% advance over 13 trading days, there’s obviously been other moves taking place over other timeframes. And this is where those other indicators, these other predictive tools, they’re tuned a little bit differently, but can help traders solve those problems.
So if we go ahead and look at the very bottom of the chart, what you’re going to see is this bar that goes from green to red and back to green. And this is updated every single trading day. And what it’s doing is looking ahead for the next 48 hours and forecasting short-term strength or short-term weakness in the marketplace. So I kind of think of this as looking over a 48-hour window and looking at really that subsequent price action that hasn’t yet occurred. And this indicator is accurate upwards of 86, 87% over a very wide number of markets. And so that’s through Fed announcements, through earnings reports, still maintaining that very high level of accuracy. So you have this getting it right essentially four out of five times. And you can go ahead and combine these things with tools like your Predicted Moving Averages.
And so this is where things can get very helpful as far as recognizing that, okay, well, there may be some weakness over the next 48 hours here, but the overall trend, that predicted moving average, still very much above the actual moving average and the overall trend still to the upside. Now, again, that tool will help you with the short-term 48 hours, but you also have a predicted high and a predicted low candle. That is, again, another neural network tuned to solve a different problem of what is likely to be the next day high and next day low.
So when you put this all together, you really get this robust forecast, giving you the overall trend direction, short-term strength or weakness, as well as a predicted high and low literally for intraday trading. So you see these predicted lows over these subsequent days hit, if you have limit orders waiting, you’ll get filled at the open. And as this market starts to advance, volatility can pick up. But the tool does an excellent job of recognizing what’s going on here, shifting and making those adjustments so that the trader can really maintain the position and make sure they’re involved for when things really get exciting. And we’ve seen shares and the market get really exciting over the past week here as things advance.
So again about a 24, 25% move here, and we may see some gapping behavior here with all this volatility. But recognizing the strength coming into the market and having the tools to give you the confidence and say, “Okay, well, I really understand that this is fairly broad-based and it makes sense to hold those positions, or maybe trade the futures, or add to positions,” or however you want to approach it.
So here are shares of Caterpillar, and I just want to bring this in again as a just broad sort of approach and say, okay, well, when you look at the forecast, when you work with tools like the VantagePoint Intelliscan, which actually detects when these crossovers are occurring and you can even fine-tune all of these indicators based on your trading style and timeframe to alert you to the type of things that you want to see.
So we see here with Caterpillar, we getting that blue line crossing above the black line, and then these short-term tools coming in day after day. And even as this market is running sideways and really not doing a whole lot, you have these tools to really accumulate a really nice position there and be around for when things really start to advance. You see that neural index gets bullish and there we see that gapping behavior that you’ve seen a lot of that throughout the market. And this is why you really want to get those positions on early and at good prices so you can really limit the risk and exposure to get some exposure to a potentially really nice start of a trend here. So here we have shares up about five to 6% in Caterpillar. But more so just in the capital goods, building material space, just seeing that generalized strength.
So you bring in another stock here like Vulcan Material, and you can see all the way going back to the beginning of July a lot of strength as far as that blue line crossing above the black line. Neural index getting bearish, and you see the market running sideways. But the predicted moving average staying above the actual moving average. And we can come in and look at, okay, well, if we had those predicted highs and lows to help us, you can see that it’s going to guide you here as far as letting you know where some levels are, where some more value is as far as some short-term price action. And so when things start to advance, well, this is where these early entries are going to help you. And when things often run sideways and settle out, you see the tool does an excellent job of understanding where is the best place to maybe add to that position, or potentially on the top side of things, look to take profit, if you’re looking to get out of the market.
So again, Vulcan Materials, a little bit more of an advance here, but really just highlighting the generalized strength you’ve seen all throughout the marketplace. And how the combination of tools, whether that be the predicted moving averages which will help you with trend in the overall strength of the market, or these short-term tools are going to help you get a handle on where should that focus and attention be in the marketplace so that you can really make the most out of what the market’s given you.
So to that, let’s go look at Bath & Body Works. And so this was actually a market we had highlighted to the downside here. And there were a lot of opportunities to short at predicted highs. But we, again, started to see more recently strength come into the marketplace. And then you see these neural index getting bullish here. But more importantly, a very strong crossover to the upside. And even here in Bath & Body Works, where if we come up and bring up those predicted highs and lows, we can see that there was ample opportunity on the bearish side, which, if you want to review that, go back several weeks and you can see that Hot Stocks Outlook. But more so recently on the upside highlighting areas where, if anything, you want to be a buyer, have those limit orders waiting down at these levels to go ahead and accumulate a position.
And these sort of moves can be very advantageous to the portfolio and get you some really nice entries where you can lock in stops, trail your entries, and really have things working here. So we see this a shift in the marketplace, a place where you may have been short, very rapidly shifting to the upside and offering up a 23% rally just over the past seven trading days with the help of some of those short-term levels. And even more recently getting, again, probably about a seven or 8% rally there just over a few days over the past week here.
Now we can move over to Hilton Hotels. And this was another market that was in a downtrend. Hotels were not doing very good. But here you see on about mid-month here, about July 13th, you get that blue line crossing above the black line. The neural index giving you that guidance, if specifically this is where you’re trading and you may want to make those trade adjustments, well, that’s where you can pay closer attention to the neural index. You see here, the neural index going bearish, and the next day you really run sideways and a little bit of weakness there. But the overall trend is up and very clearly so for really the duration of the last half month of July here.
So when we take a look at the overall move, just from blue line crossing black line, we’ve got about a 15% rally. But depending on the trading style and approach, well, if you’re ready and have these tools and say, “Okay, well, I’m maybe a day trader and looking to take these pieces out of the market,” well, maybe that’s how you want to go ahead and approach it. But oftentimes it’s good to, like in a day like this, be buying down at that predicted low and around for when that market really starts to rally and that overall trend continues. So you can combine those shorter-term approaches with the longer term and understand, hey, when to stick around or when to get out of the way if things start to go into a downtrend.
So lastly here, we’ll just revisit Apple. And I’m just bringing this through because we’ve looked at it every single week going all the way back to really mid-June at this point, to highlight a very important point of, one, how to identify those trend reversals extremely early in the marketplace and understand those areas where it’s appropriate to stake out a position. And when you see strength fairly obvious in a market like Apple, well, it becomes fairly straightforward if you’re trading something like the NASDAQ, where you might want to look not only for the market to move higher generally, but even more so of when Apple’s down at things like the VantagePoint predicted lows, is oftentimes when you’re going to see things like the NASDAQ really start to perk up.
And so we’ve really gone through this whole period and some of these areas where even where you see volatility, you see it often moving to a very predictable previous level from a previous predicted high or low. And again, just a really great example of how these tools can get you focused in the right place, understanding where the greatest opportunity is. And where the greatest opportunity is is often going to be where the least amount of risk is. So this is again about a 15% rally there in Apple over the past 25 trading days. And just numerous opportunities to get that exposure and take some profits as these rallies come through.
So we’ll go ahead and leave it there for today. But once again, this has been our Hot Stocks Outlook for July 29th, 2022. Thank you, all, for watching, best of luck, and bye for now.