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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 Valero Energy ($VLO), Hasbro ($HAS), Nucor ($NUE), Activision ($ATV), Electronic Arts ($EA) and ConAgra Foods ($CAG)
Hello again, traders, and welcome back to the Hot Stocks Outlook for October 28th, 2022. Hope y’all are having a great week out there in the financial markets, and as always, plenty to cover here in today’s outlook. And if you haven’t already, make sure you click on the link in the description below and get a live demonstration and learn more of the specifics about how this technology and these tools can really help you as a trader solve some of those problems and make better trading decisions day in and day out in the marketplace.
So what we’re going to do, we’ll start out with shares of Valero. Sort of a review episode here, where we’ve got Valero, Hasbro, Activision. We definitely looked at those over the past few weeks. We’ll look at another video game stock here, and ConAgra, and we’ll lend on the steel stock.
So starting out with Valero, a really good example of how all this collection of tools work together.
And so what we have here is daily price action. So each one of these candles represents a full and complete trading day. And so right up against that price data, you’re going to see that there is a black line and also a blue line there. So the black line that you’re seeing there, that is a simple moving average. So it’s a very common technical indicator, in this case we call it the actual simple moving average. But what it does is it just looks back over the previous 10 closes in this case, it’s going to add all those together and then divide by 10. And so it acts to smooth out the existing price action and let the trader know where the market has been over a given period of time. But obviously traders need to be ahead of that next move in the marketplace. And so what we’re able to do is actually compare that lagging, moving average to this predicted proprietary predicted moving average.
And so for this number to get calculated and plotted for you each and every evening, this is where the technology of artificial neural networks are performing what’s called intermarket analysis, specifically on the target market that you’re trading. Now obviously, things like the crude oil market and even the net gas market and other energy stocks are going to affect the shares of Valero energy, but there’s also ETF groups that can share some very interesting relationships. And what this technology’s able to do is look at the data between those markets, feather out those very important significant relationships, and then use that to the traders advantage and actually start skewing these indicators to help traders understand where things are going next. So it’s going to look at very important futures and commodity markets like the value of the dollar index, again, crude oil prices as well as the S&P or the Nasdaq.
And so it takes all of this into account and uses that information to generate true price predictions. So this is what artificial neural networks are very good at, is looking at large amounts of data and making accurate predictions. And it’s those predictions that are used to generate and construct these indicators. And so rather than having rearward looking tools that really just get dragged around by the most recent close price, what we have are predictive tools that are going to lead the market with a high level of reliability. And so whenever that blue line crosses above the black line, it informs traders of potential trend shifts in the market. And you therefore want to say, “Okay. Well, something’s going on here, let me get my attention in this case over to the energy stocks.” And so we’ve got about a 20% rally over the past 21 trading days.
But you’ll see it, you look at the very bottom of the chart, you see how you get this bar that goes from green to red and it can go back to green to red. Well, this is again, derived via that neural network technology, but it’s tuned to solve a different problem. So in this case, what it’s doing is just looking ahead over the next 48 hours. So short term strength or weakness and letting you know again, over that short term window, is there likely to be strength or weakness. And so we can see here with shares of Valero, you’ll get some periods where that neural index goes bearish, and you can think of it as expecting some lower lows over the 48 or the subsequent price action. But if the overall trend is up and you’re able to use features like the Intelliscan to actually see how much of the market or how much of this sector is turned up or in up-trend, it makes it easy to identify areas of interest to trade.
And then what traders can do is actually come in with the help of these predicted highs and lows. Again, those neural networks tune to solve this problem of intra day, where is this market to trade on the high and low end? And this can help traders over the course of an opportunity, add to the position, take profits. And so what we’re looking at here is actually those predictions right up against the actual market data. And so if you understand, “Hey, there’s something going on in energy stocks.” Here’s just one example, but it’s pretty widespread. Well, we can use this to manage that opportunity and get better entries as we’re trying to accumulate a position, but also take profits on the upside. So intra day when these things are moving up towards a predicted high, it’s often a good opportunity to take some profit, get out of the way and look for lower prices at subsequent predicted highs or lows.
And so again, about a 20% rally here in shares of Valero, but it’s been a pretty tricky market. We’ve had some things moving up, other things crashing earnings all through the week, but a very easy place that we’ve highlighted week after week here as far as where some attention should go as the forecasts are skewing in that direction.
Now here, shares of Hasbro, we also looked at this a few weeks ago, but getting this crossover to the downside and really not an area where we’re seeing crosses to the upside. So we had a lot of markets that actually we’ve seen some strength come in and you should expect those higher highs to come in and some trends to start moving to the upside like in Valero. But you’re really not seeing it in other places of the market. So it makes it easy for the trader to say, “Okay. Well, how can I set up that portfolio to take advantage of these differing situations?”
You see here, the market off about 18%, but really the more important thing is we can look at, well, how are those predicted highs and lows helping the trader over the course of this period? And so when you’re looking for opportunities to short, you see really great entries, a little bit of volatility over this period, but day after day after day, getting these reliable tools to help you make some good trading decisions and adjust the portfolio. But clearly not an area where you want to get long. And if anything, set some shorts at these advantageous levels that are being highlighted via the short term forecasts.
Activision, I’m sort of like a broken record here, just keep veering this through, but it hasn’t pivoted to the upside. So we looked at this last week and there were a lot of markets that actually had gone to the upside, and that’s great.
You know, go ahead and focus the attention there if you want to be bullish and exploit some of those opportunities. But clearly here in Activision, we see that overall trend is down and you’re just not getting anything here, right? It’s constantly letting you know what short up at these predicted highs and expect the market to continue lower if we’re targeting down towards these predicted low levels, if you want to go ahead and take some profits.
But what I wanted to highlight here is actually Electronic Arts. So a little bit of shorter term opportunity, but I just wanted to highlight how some of these markets actually saw a lot of strength come in and are alerting you that, “Hey, there’s actually some short term strength in Electronic Arts.” Now if you want to play around in video game stocks, right? You can focus your attention on where are things likely to work best and then move forward with the help of these short term tools.
So again, you see as that crossover comes in, a perfect predicted low getting hit there, some subsequent predicted highs being hit. And what that really offers is traders the opportunity to take profit and just look for lower prices the next trading day. I mean, all you’re going to do is improve that position if you’re looking to stay involved in the trend. So pretty nice bounce here in the stock, but we’ve got things really moving around here. So you want to go ahead and take those profits and make some money and really not push things too far here. If you get a good entry, great. These trends will let you know it’s okay.
Well, you can hold that position here in ConAgra Foods, right? It’s really nice crossover to the upside. Look at these situations like this, like neural index, and you get this gap down to the lower lows over the subsequent price action.
Again here, lower lows within that 48 hour period. But how quickly it gets bullish and lets you know, “Look, overall trend is obviously up and then there’s a lot of strength coming through here over this time period.” So again, a lot of the food stocks actually seeing these things perk up pretty nicely as the markets do well and as dollar weakens. So I hear about a six, 7% rally in the past 14 trading days. Again, ConAgra, bigger stock there.
And lastly, Nucor so we looked at a lot of these steel stocks having seen, again, oil and steel highlighting an area where it’s like, “Okay. Well, here’s some stocks, a lot of stocks within those areas that you can focus the attention and get the benefit of these short term predicted high and low tools to help you with the trade management.”
So you get a little blip here in the neural index, another one here. But this is really a good example of the neural index gets this right four to five times, right? Essentially over 80% accuracy across a wide range of markets. And that’s through fed announcements, earnings reports. And so you can rely on that tool to help you make better trading decisions. And you see how bullish it is over this time period. So if you’re looking for markets to short or take advantage of, you’re not doing it here.
You understand that this stock is likely to move higher and you really don’t want to get in the way. And again, that narrative, you got Valero, Nucor, defense companies, it’s getting a little scary out there and you’re seeing a lot of the tech stuff, the traditional things that people get really interested in not performing well. And that’s where you really don’t want to get on the wrong side of things and end up in a heap of trouble in a lot of pain here. So, we’ll go ahead and leave it there. Once again, this has been the Hot Stocks Outlook for October 28th, 2022. Thank you all for watching. Best of luck and bye for now.
