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 Freeport McMoran Copper and Gold($FCX), SPY ETF ($SPY), Paypal ($PYPL), Caterpillar ($CAT), Northrop Grumman ($NOC), META ($META) and Amazon ($AMZN)
SPY ETF ($SPY)
Hello again, traders, and welcome back to the Hot Stocks Outlook for February 24th, 2023. Hope you all are having a great week out there in the financial markets, and as always, plenty to take a look at here in today’s outlook. We can go ahead and really continue on highlighting some of this weakness that we’ve seen actually in the S&P 500. Look at this crossover, the downside in the SPY ETF, and as we look throughout the year at the broader markets and see really how things have gone here. Well, we see that over the past year we’re actually off about six and a half percent in that SPY, the S&P 500, past six months off three. And what we’ve seen over the past few weeks is this shift. So when we looked at the past quarter, there were actually some really nice rallies and things like Amazon, Disney leading the way, but then we’ve seen these problems come back, things like the dollars start to move higher.
And this is why this software is extremely effective at helping traders understand how those global market relationships are affecting things like the stock market. So let’s go ahead and look through some of these opportunities.
Freeport McMoran Copper and Gold($FCX)
And I want to start here with Freeport. This is a gold and copper mining stock here. And there’s a really good example of some of the macro side of the market and what’s been driving things, but obviously, an individual trader needs to update their behavior every single day and make the most of their trading opportunity. But what I want to highlight here is what we have is daily price action. So regardless of which market you’re trading, this all works off of end-of-day data, and each one of those candles is representing a full and complete trading day. And so right up against that price data, what you’re looking at there is the black value and blue value that you see on the screen.
Well, that black line, that is a simple moving average. It’s a very common technical indicator. In this specific case, it looks at the previous 10 closes. It’ll add those all together and divide by 10. And what that does for us as traders is smooth out the existing price action, but traders need to be ahead of the next move in the marketplace. And so what we’re able to compare what we would call that lagging moving average to is this proprietary predicted moving average. And so for that blue line to get plotted and calculated, and placed there for the trader each and every evening, this is where the technology of artificial neural networks are coming into play, and they’re performing an extremely effective type of analysis, what’s called intermarket analysis, meaning, they’re looking at relationships that are known to drive and influence the future price of the target marketing question.
So if in this case, FCX stock. Now here’s what’s important, and it’s very obvious when you look at something like a gold mining stock, well, this is certainly going to be affected by the value of… Well, I don’t know. Gold prices’ probably going to have a pretty big effect. Well, golden, the dollar index share are very important market relationships and thus very likely to affect the future price of shares of a mining company. But then there’s also those ETFs. Those individual gold mining ETFs, some of the junior miners, the larger things split up in different ways. And it’s going to account for how individual ETF markets are affecting this, but also down to individual stocks. All the way down to global interest rates or other global commodities like wheat or sugar, corn.
And this is what’s so important about this is traders need to understand how all of those global market relationships are affecting the target market that they’re trading. If you’re putting money at risk, and not understanding how that market may be affected and driven by these other global market relationships, well, that’s quite a dangerous thing to do. And so what this analysis does is take in that information and actually generate future price predictions, and it’s those future price predictions generated via the technology that are used to build these indicators. So rather than having tools that are just victims to the past and really get dragged around, you have a forward-looking predictive tool. And so if we go to the bottom of the screen, this technology carries through to solve a different problem, and this being short-term strength or weakness over, really, just a 48-hour period or just a couple of trading candles.
Now when we look at this, you can see how effective this is. You’ll get these little flurries of higher highs over the subsequent 48 hours when you see that neural index go to its bullish configuration. But the blue line is still below the black line, and what it’s suggesting is average prices are still expected to move lower, and you, therefore want to short and take profits on shorts. Now, if a trader is very a short-term trader and looking for levels where they can take action, well, VantagePoint also provides a predicted high and a predicted low for every trading day. So that technology of artificial neural networks used to solve different problems, different problems over different timeframes. This one, intraday, and you need to know what’s the intraday predicted high and predicted low, where might I want to set limit or profit targets, or even stop losses.
And so this is how this can help you. And as you see this shift to the downside and that trend move lower, you’re getting an updated predicted high and low every single trading day. And what we’re looking at is how accurate all of those predictions are. So you see how early in the trade like when we look at Amazon and Disney, and these things, excellent entries early on in an opportunity, but more so the ability to manage that opportunity. So even as markets are running sideways, you’re getting clues that say cover down here, short up here, cover down here, short up here, cover down here, and really make the most, and really give yourself the opportunity to hold on to that trading opportunity as long as VantagePoint’s forecasting that trend to continue. So we’ve gotten a really nice decline here, about 8% lower.
I encourage you to go back in the summer, and we looked at this at about $27 a share, but on the way up, because we have a different set of circumstances then. But now we’re certainly seeing some bigger shifts in the broader market. So let’s just take that very simple approach and look at some of these other very important markets throughout the stock market here.
Here’s PayPal, so if you’re running your scans, we actually have a scanning feature that will really highlight and point out these fresh shifts in the marketplace, as far as these predicted indicators are concerned, well, here’s PayPal, very strong crossover to the downside. You’ll notice the neural index, very bearish as this momentum kicks to the downside, and a little bit of sideways price action as the neural index gets bullish.
But very clearly, if you’re wondering, “Hey, what’s going on with PayPal? What’s going on with other tech stocks?” Well I mean, blue line below the black line, neural index bearish want to be shorting up towards these predicted highs and targeting the predicted lows, and then adjusting that behavior based on the updated forecast. But we still have, again, that blue line still below the black line and these updated predicted high and low levels to help guide you as the market shifts day to day.
Here’s Caterpillar. We looked at this over the past, really, few weeks, and I brought this in a highlight, really, just some of the generalized weakness we’ve seen in the capital good space.
And when you see something as broad as Caterpillar, well, we’ve also seen Lennar, and the home builders start to pull back as well. Well, we’ve seen this for several weeks, right across over to the downside, you’ll see the neural index goes bullish here and we get some sideways price action. But is this an area where you want to be long? And so look how things have shifted over the past week. Well, market has moved lower. Where has it started to aggressively move lower from? Well, these predicted levels that VantagePoint has pointed out within the downtrend that we’ve identified over the past few weeks. So again, just giving you that broader information that, okay, well, if you have Caterpillar going lower, that’s giving you some broader information on where you might want to look for opportunities, and certainly, where you might want to avoid. And certainly, the capital good space has suffered a bit here.
Now there’s not too many opportunities that are maintaining their uptrends. We highlighted, actually, Amazon and Disney, and a Tesla, and all these things that are doing well.
Well, here’s Northrop Grumman, and you see how this past week, if this is an area where you’re trading, well, it said, look, the blue line is still above the black line. Neural index is still very bullish here. You have these levels coming in, the predicted highs and lows doing a good job, and some really great guidance for the trader. But a rarity, as far as a market, actually, where there is some persistent strength here as far as that blue line over the black line. And so over the past few weeks here, you’ve seen some strength. But again, I just want to highlight that we’ve been looking at the S&P. We’re just showing you these market relationships and we’re seeing broad base weakness.
So here’s about 6.5% move higher. Here’s shares of Ford, and I wanted to bring this through to highlight that sometimes you’re going to get sideways price action. So here we actually have a crossover, the downside. You notice the neural index is bullish. Well, there’s some higher highs there. Neural index goes bullish here, some higher highs over the subsequent 48 hours. But look, as that momentum picks up, look at how clear the blue line is below that black line, indicating that the overall trend is lower here. So again, PayPal, Caterpillar, Ford, you’re seeing some warning signs out there in individual shares, and that’s fine. You can go and hedge the portfolio, potentially get short. But it’s very important to make those adjustments, and this is really what we’ve been clattering on about over the past few weeks is when these shifts have to happen, you need to be aware of it and get the portfolio position.
So as volatility kicks into things, you’re really positioned well to make some money, whether we’re seeing markets go up or stock markets go down. So about a 10% decline there in Ford.
Let’s take a look at Meta Facebook stock. Really exciting rally here. As we saw, a lot of markets do extremely well over this time period, but we’re seeing more and more shifts in the marketplace. So if we take a look at this, looking at Tesla, I mean, markets’ almost doubled. We’ve been bringing that through week after week, after week. Here’s Meta here with a 52% rally, and over that 52% rally over 31 trading days. Well, you’ve had this guidance from things like the VantagePoint predicted high and low levels to really let you know where those places of value, where you can scoop up shares, and really get that optionality on how you want to deal with things once things are at aggressively higher prices.
But when you start getting those clues that there’s been a shift in the market, well, maybe you want to adjust that behavior and actually start shorting and taking profit at predicted lows. And you see how this week… Well, that’s how you’re going to be making money in the market. So if you’re a shorter term trader and really determined to every week trying to be pulling money and get the better side of where these things are headed, well, this is exactly the approach. Recognize these shifts, understanding when it’s appropriate to be long.
Well, we highlighted that with Amazon and Disney on the way up, but this is the most recent forecast for Amazon. Crossover to the downside, neural index bearish, and just look how effective these forecasts are with the neural index getting bullish, that strength coming in. But you’re not getting fooled by that strength.
You’re understanding that this is a weak market. We have a very clear forecast with the blue line below the black line here in shares of Amazon. And then again, we can look at the predicted highs and lows. You see an excellent job of getting hit there. We don’t quite hit these levels, but do you want to be long in this market? Well, no, you want to short, take profits on shorts. And if we get a situation like we had a couple months ago, where we saw Amazon and Disney go higher, it’s the exact same approach. The exact same methodology that will recognize those shifts and understand and participate. But you’ve seen here very quickly here in Amazon, the market is now off. We can look at just on a percentage basis, 5.5% percent. So even if the market moves higher, you’ll have these tools to potentially get you back in the market at much better levels than this was forecasting to move lower.
And that’s really the point, is understanding when it’s appropriate to get out of the way. There’s lower prices coming, and even if you were bullish in the market, you should understand that, look, look for lower prices, and then use these tools to go ahead and get long. But certainly, now is not the time, and that’s pretty much it. So we’ve got plenty of opportunities and a lot going on, and really just updating these forecasts. But it’s just so important to have a tool that’s able to adapt, look at those global market relationships, whether it’s dollar having a big impact, whether it’s a certain sector of stocks really starting to turn. You really want to recognize that and really have the tools to make the most of these opportunities that you’re putting into the portfolio. So we’ll go ahead and leave it there for today. Once again, this has been the Hot Stocks Outlook for February 24th, 2023. Thank you all for watching. Best of luck and bye for now.
Source link
#Vantagepoint #A.I #Hot #Stocks #Outlook #February