Vantagepoint A.I. Hot Stocks Outlook for September 2, 2022

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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 NVIDIA($NVDA), Salesforce.com ($CRM), Waste Management ($WM), Lennar ($LEN) and Newmont Mining ($NEM)

Hello again traders and welcome back to the Hot Stocks Outlook for September 2nd, 2022. Hope you all are having a excellent week out there in the financial markets and, as always, we have a lot 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 of how this technology can help you make better trading decisions.

NVIDIA($NVDA)

$NVIDIA

But we’re going to go ahead and we’re going to start out with shares of Nvidia. We’ve also got Salesforce, so a couple of opportunities there in the tech space and we’ll move on to Waste Management, which we looked at last week, a little bit of Home Building stocks here, as well as mining. And the idea here really is just to highlight these different things going on throughout the market, but really important to recognize those bigger themes. Now we’ve talked at length about the tech space. We looked at Texas Instruments a couple of weeks ago, started to see that weakness come in, and it made a lot of sense to go ahead and get short, hedge your portfolio, act accordingly.

And so here in shares of Nvidia, what we have here is daily price action. So all of these candles, each one, represents a full and complete trading day. But right up against all that price data you’re going to notice that there’s actually a black line and a blue line there. So, how this works is that black line that you’re seeing there is a simple moving average. This is a very common technical indicator and so in this case, it’s actually looking back at the previous 10 close prices. It’ll add those all together and divide by 10. And for our purposes here, that acts as a really good baseline and lets us know where market prices have already been because all of that data is really just derived by the past closed prices.

But traders need to be ahead of that next move and understand, well, where are prices going next? And so what we’re able to do is actually compare that black value, or what you might call a lagging moving average, to this proprietary predicted moving average and for that number. So that prediction of average prices moving forward, for that number to get calculated and plotted against the chart for the trader, this is where the technology of artificial neural networks is coming into play. So when forecasting this predicted moving average for Nvidia, what’s happening is the technology understands other markets that are known to drive and influence the future price of Nvidia. This is what you would call Intermarket analysis, looking at things like the technology ETF, looking at other individual stocks. But my goodness, so important right now is looking at things like the dollar index, crude oil prices. And this is having a huge implication on your portfolio and if you don’t have a way to consistently account for that, you’re probably going to be quite surprised at what happens in some of these markets at times.

So here in Nvidia what we have is that predicted moving average, or that technology that’s looking at those intermarket relationships. Well, what it will do is then generate true price predictions, so an actual forward looking prediction, and it’s those price predictions that are used to actually construct these indicators. So rather than having just tools that are [inaudible 00:02:53] past prices into a new configuration, well, this is a technology that has a high level of accuracy predicting future prices and solving those difficult problems for the trader. So here, what we have is that predicted moving average, crossing below the actual moving average, and that would suggest average prices are going to start moving lower and you can start expressing your trading strategy, whatever that is, as far as timeframe and instrument you might use, but you see your share’s off about 21, 22% in nine trading days, right? About a 200 shares, there’s about $7,800 move to the downside. This is very big and significant. What’s been going on the past couple of weeks and you need to make those adjustments at the portfolio level.

But this is what’s so helpful is even if you’re a shorter-term trader, there’s other tools here that can solve those other problems for you. So if you come down to the bottom of the chart, you see this bar that goes from green to red, back to green, and this is what you might call a binary output. It can either be one or the other, but what it’s predicting is a highly accurate short-term forecast. So this is tuned to solve a different problem for the trader of short-term strength or weakness over the next 48 hours. So you can think of that as a couple of candles, short-term strength or weakness, within that overall trend.

So you see how the forecast works here, where the overall trend is lower, but what it’s telling you here is that neural index, after the daily price action, you’ll get all these updated forecasts. Well, what they’re saying is, expect higher highs over the next couple of trading days. But as long as that blue line remains below the black line, and you see as all of that forecast now moves to the downside and that trend resumes, and you see things really accelerate here as shares move lower. So this is just very important to understand, okay, well, how can I utilize these tools and incorporate them into my trading approach so that you’re making good trading decisions on those windows where you’re participating? But it doesn’t really end there, if you look at the very right-hand side of the chart, you’re even provided a intra-day predicted high and low level.

And we look at these things every single week and sometimes we’ll see that it misses the one day and it’s the very next day that it’s hitting that predicted high and low level, but the point is understanding these short-term areas in the market, these short-term levels that are going to offer some exceptional value for you. So when we go ahead and look at those predicted highs and lows against the actual market data, well, we can say, okay, well, where might you be looking to, in this case, short the market? Well, these are excellent days to get that entry, you see the market trades up and next day absolutely collapsing, and how the predicted low here as a market just rides lower and lower, as it resumes that trend, and then accelerates. So again, just, it’s been painfully obvious that you do not want to be in the tech space.

We had Apple had a really great run in June that we covered at length here, but you have to recognize those shifts in the market and these are the tools, especially when combined with the scanning features within vantage point, that are going to get these things on the radar so that this is quite understood that all right, we’re likely to see some trouble especially in the tech space and it’s those relationships. The dollar seems to be having the most effect on the NASDAQ and those stocks as far as the momentum of those moves to the downside.

Salesforce.com ($CRM)

Salesforce.com ($CRM)

So here shares of CRM, exact same approach. And so what’s going to happen is when you’re setting up your IntelliScan to find these crossovers to the downside, we’re going to see a lot clicking through, like Texas instruments about two weeks ago, and that lets you know that, hey, something’s going on, you need to adjust that portfolio. And we see here as this overall trend continues, you have Salesforce down 18% in the past 11 trading days. And, again, this past couple of weeks, this is exactly how this software benefits traders in helping them understand these bigger shifts in the market. Whether it’s that shift on June 21st as the NASDAQ started to move higher, but then recognizing, look, that’s over, we’ve had this shift in things and if things start to move to the upside once again, well great, we’ll have the tools to participate when shares move higher once again.

Waste Management ($WM)

Waste Management ($WM)

Now waste management was one of the stronger opportunities. So we did the last week’s hot stocks outlook about right here. And it was like, okay, well everything looks weak out there, you want to get short and hedge the portfolio. But Waste Management is one of the more stronger opportunities out there and you see during the trading day, the market did fairly well, but very clearly more and more of this market is shifting to the downside. So while you may have ridden tech up, well, it’s really one of the first places where you want to go ahead and take some profit. You see a little bit later here, you start seeing weakness in Waste Management, but what I want to highlight is that look at these predicted high and low levels. So once you recognize that that trend has shifted, how well these levels do it, saying, look, take your profit, short the market, maybe even make money to the short side as the market moves lower.

Lennar ($LEN)

Lennar ($LEN)

Although we’ve made a case as to why there might be some better opportunities if you actually want to go ahead and short things, but more clearly here saying, look, there’s some problems out in the broader market. We’ve had this great run all through June and July, but once that crossover moved to the downside, it’s very clear you want to short, take profits on shorts, that’s how you’ll make money at least in the very short term here with these forecasts.

Here shares of Lennar Home Builder, again, just moving around the different areas of the market here as cross over to the downside. You see how these short-term forecasts can help the trader understand that, okay, well you might have some higher highs over the next trading day, deal with that volatility, but the blue line, right, the overall trend still very much bearish. And as that trend accelerates, you see things go lower still. And again, we can use those tools, like those predicted high and low levels, to help guide the action. So when you understand, okay, well where might you want to be shorting to get that bearish position on and keep expressing that. Even in this situation here where the overall trend is lower, well, when that neural index is bullish, you understand, well look for this market to want to move higher over the next couple of trading days, but that would be a good opportunity to go ahead and get short. Now, if you want to wait for the momentum to come in, you see as the momentum comes in things then accelerate to the downside, but you get really the benefit of these forecasts collectively, right? Across all the markets that you might be trading in, you can actually use them and leverage them to even identify what markets you may want to trade.

Newmont Mining ($NEM)

Newmont Mining ($NEM)

So continue on moving on to Newmont Mining and the dollar has been very strong here. That’s had an inverse relationship with gold and commodities. We’ve seen oil and really all commodities actually do not too great as the dollar really had a huge rally on what would’ve been Thursday here in this week. And it’s just been so important on the portfolio level to make those adjustments and as those things shift, there’s going to be tremendous trading opportunities to the long side in stocks and commodities, most likely. So when you have these tools ahead of time, you’re going to see all these shifts as they happen, but here in Newmont Mining, again, we see a crossover to the downside, neural index gets bullish, and so you get that sideways price action, but the overall trend is still down.

And you see how much of these different sectors still look the same, right? Because when those big relationships, when the dollar’s moving, when the NASDAQ and S&P, the whole market can go lockstep and there’s really only one position that you’d want to be in to make money over that time period. And so, again, if you don’t have those tools that are able to better out these relationships on how are the other ETFs and how is the gold market itself as well as the dollar index and crude oil affecting the stocks that you are putting into the portfolio. And so it’s a lot having horse blinders on when you’re making trades and doing all this stuff and not taking into account some of those bigger macro factors that are going to come into play and certainly, we can see, having a big effect on things. So we’ll go ahead and leave it there for this week, really exciting times in the markets. But once again, this has been the Hot Stocks Outlook for July 2nd, 2022. Thank you all for watching, best of luck out there, thanks again and bye for now.