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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 SPDR SPY($SPY), Spotify ($SPOT), DraftKings ($DKNG), Chipotle Mexican Grill ($CMG), Dollar General ($DG), and Regions Financial ($RF).
SPDR SPY ETF ($SPY)
Hello again, Traders, and welcome back to the hot stocks outlook for September 8, 2023. I hope you all have had an excellent week out there in the financial markets. As always, we’ve got plenty to take a look at in today’s hot stocks outlook, so if you haven’t already, make sure you go ahead and click on that link in the description below. You can sign up and get a live demonstration and learn a lot of the specifics about how this technology can really help you make better trading decisions, almost regardless of your trading approach and style.
Now, as we typically do, we’ll look at the S&P 500 or the SPY ETF just to get a sense of where things have been over these big blocks of time. Here, we can see going back 12 months or a year, we’re up about 11%. We’re still doing pretty good on that year-to-date number, starting at January 1st. But we’ve had a little bit of sideways action and some problems here in the equity space. This is why it’s critically important to really have the right tools and identify the strongest markets or potentially the weakest markets to get out of the way or hedge yourself.
So what we’re going to do is we’ll start out here with shares of Spotify, we’ve got DraftKings, Chipotle Mexican Grill, Dollar General, and we’ll end on Regions Financials there. But Spotify is a really good example where we looked at this last week, really highlighting where are these areas of strength in the market.
So what we have with shares of Spotify is daily price action. Each one of the candles that you see on the screen represents a full and complete trading day. Right up against all of that daily price action, you’ll notice that there is a black line and a blue line value. So what that black line value is is actually a simple moving average. This is a very common technical analysis tool. In this case, what it’ll do is look back over the previous 10 closed prices, add those all together, and divide by 10. So what that black line value does is really smooth out the existing price action and let us know where the market prices have been over a given period of time.
But the problem with tools that really generate all of their data from the past is that they’re always going to lag behind. They’re really just summarizing what’s already occurred in the market, and obviously, Traders want to be ahead of that next move. And so what we’re able to do is compare that, what we call that lagging moving average, to this proprietary predictive moving average. We can think of this as a prediction of future average prices going forward. But for that number, essentially, that value would be plotted against the chart every evening for the Trader.
Well, this is where the technology of artificial neural networks comes into play. What they’re doing is performing what we call inter-market analysis. And so what that means is specifically for shares of Spotify, there are known markets that are going to drive and influence the future price of shares here. Well, that can be things like the big broader indices like the S&P 500 or potentially the NASDAQ. But it gets a lot more subtle. Right now, we’ve seen big moves out of the US dollar Index, and that’s been having an effect on the stock indices and risk-on, risk-off, things like Global interest rates. But it’s even able to analyze markets like gold or oil or other particular Commodities as well as ETF groups and really get that sense of, okay, specifically for Spotify, what are the influences that are driving those future prices?
And what happens is we take these predictions generated via the artificial neural networks and use that to construct these indicators. So rather than having tools that are always lagging behind the market, what we have is a forward-looking predictive tool. So we can see with Spotify just in the last five trading days in between when we make these sessions, we’ve got shares up another six, almost seven percent just in the past five trading days. If we take this all the way back to where this trade started, you have almost a 17 percent move in just the past nine trading days.
So again, identifying where these crossovers are occurring, where that distance between that prediction of the moving average and the actual moving average are, and then also this very helpful short-term tool like the Vantage Point predicted neural index at the very bottom of the chart.
So what I’m going to do is we can go over to this next chart for DraftKings and go into a little bit more detail here. Very similarly to Spotify a couple of weeks ago, it was really on that Friday, I believe the 25th or so, right, we had these crossovers to the bullish side, we saw a lot of strength come into the market. And so you want to identify that and say, okay, well, if I want to get that bullish exposure, well, Spotify is looking good, DraftKings, and we see that we get that Blue Line crossing above the black line. And since that point, we’ve had a really nice rally here.
But what we haven’t seen is the Blue Line crossing below the black line, right. So here you see about a 12.6 percent move over the last nine trading days. Now, just because the Blue Line hasn’t moved below the black line, though, it doesn’t mean you might not have some short-term strength or weakness. And this is where tools like the Vantage Point neural Index, this a bar at the bottom of the chart that goes from green to red and back to green. This is a highly accurate indicator, but it’s only tuned to solve a very specific problem, and that’s short-term strength or weakness over the next 48 hours. Right, so we can think of that as short-term strength or weakness just over a very, very short period of time here. And that can help Traders with the overall trade management.
So as this Market goes up about 12.6, almost 13 percent, you’ll notice that that neural index goes bearish, and you do have a weakening of prices within those subsequent 48-hour periods. But is the blue line still above the black line? Well, very much so. And you see as this neural index gets bullish again, we have a really strong day there.
So you get this help from the Vantage Point predicted neural index for those very short-term strength or weakness over the next 48 hours. But you’re also provided a predicted high and a predicted low. So if you look at this bar all the way to the right, you can see that we get this Shadow candle, and what you’re getting is a projection of what is the daily high and daily low expected to be. And so what we do each week is we take a look at all of those predictions and see how accurate they’ve been. And you can see how in a market like DraftKings, you’ve had a couple of really nice entries here as the market accelerates higher.
But identifying that, hey, DraftKings is strong, Spotify is strong, and a little bit of Chipotle Mexican Grill is pretty strong here. So again, we saw all this strength come in at the end of August that was really that pivot point where New Opportunities opened up on the bullish side.
And we see Chipotle here with that crossover to the bullish side. We can really quickly look at this forecast here where we see these predicted highs and lows doing an excellent job to get you that position early on as the market starts breaking out. But then later on, as shares move higher and you see here we get a little bit of this, sometimes we didn’t go down to that predicted low, well, you did immediately in the morning and then traded up towards the predicted high. But a very bullish forecast out of Spotify here, DraftKings, and also Chipotle Mexican Grill.
And again, we can look at the entirety of this move really since those things started to shift really a few weeks ago, about a six percent move in just the past 13 trading days. But what I want to warn you of here is that the markets are fairly mixed. Right, if you look at the Spy if you look at the cues, you’ve got a very sideways market for the past 30, 35 trading days or so. And what that does is it creates a lot of good opportunities where there is some real strength, and we see that strength coming out of the forecast. But there are some areas of weakness and areas where you just want to absolutely avoid.
So here in shares of Dollar General, we see that blue line, so that predicted moving average Crossing below the actual moving average, and we haven’t seen that pivot in late August. So as all of these markets are starting to shift to the bullish side as far as Spotify, DraftKings, Chipotle, what’s going on in Dollar General? Well, it’s warning you that this is really not a good opportunity to get long. And we actually have earnings coming up here.
But you see here that let’s look at all of these trading days leading into earnings, and you can see how a Trader could establish a very good position, get ahead in that position, and maybe go ahead and take on some of that earnings risk. It’s about one, two, three, four, five about five moves there where you can make money on the bearish side before we get this big acceleration and volatility around earnings.
But you see about five trades, and now this Market down, let’s see about, uh, 26% in just 22 trading days. So you want to be really, really careful on which stocks you’re identifying as far as potential candidates to get long but maybe even hedging the portfolio so you can have those Longs in but go ahead and hedge, get some bearish exposure, and sort of even things out a little bit and potentially make money on both sides of the market here.
Lastly, we’ll go ahead and end on shares of Regions. And this is just broadly financials and some of these mid-level banking stocks and things like this. But here in Regions financials, you see this crossover to the downside, and we have not had a recovery. So you’ve seen some of these stocks turn a little bit higher, but just a lot of weakness here, and clearly, Regions is not one of these areas where you want to take a bet on the bullish side towards the end of the month there in August.
So we can look at these predictive indicators and say, okay, well, if you’ve got these tools, it’s warning you, hey, look to short up at these predicted highs and take profit as we see this generalized weakness come into certain sectors of the marketplace. So, we’ll go ahead and leave it there for the day, but once again, this has been our hot stocks outlook for September 8, 2023. Thank you all for watching. Best of luck, and bye for now.
