Hot Stocks Outlook for the Week of May 3rd, 2019
The Hot Stocks Outlook uses VantagePoint market forecasts that are up to 86% accurate to demonstrate how traders can improve their timing and direction. In this week’s video, we analyze forecasts for Tyson Foods ($TSN), Dicks Sporting Goods ($DKS), Baker Hughes ($BHGE), Haliburton ($HAL) and Encana Corporation ($ECA).
This Week’s Hot Stocks Outlook
Good afternoon traders and welcome back to the Hot Stocks Outlook for May 3rd, 2019. Hope you’re all having an excellent week in the financial markets and, as always, plenty of great opportunities to cover here. We’re going to start here. We’ve got Tyson Foods, Dick’s Sporting Goods, and a very important theme I want to go over within the oil and energy space, and how you can identify really these inner market relationships taking hold of a big chunk of the market and opening up a lot of opportunities.
Tyson Foods ($TSN)
Tyson Foods. ($TSN) But let’s start out here with Tyson Foods. And what we have here are daily bars, so each one of these bars represents a full and complete trading day. So you can see we’re going back quite a bit to the beginning of March, but against that price data, you see that there is a black line and also a blue line. Now the black line that you see against the chart there, that is a regular or what we refer to as the actual simple moving average, and it’s a very common technical indicator, you can get it in just about any trading platform. But what it does is it takes the last close prices, adds them all together and divides by a particular number, and it acts as a good barometer of where prices have been. But of course, we have to understand where are prices going next.
So what we want to do is compare that value, that black line, to this blue line value. And that value is generated via the artificial intelligence found within vantage point. And what it’s doing is it’s looking how other related markets, up to 30, 35 other markets like ETFs, individual stocks, the dollar index, commodities, all affect and influence the future price of Tyson Foods. And what it’s able to do is actually generate predictive data, so data in the future that hasn’t yet occurred, and build that into these indicators, making them forward-looking. So whenever we have that blue line or that predicted moving average cross above the black line or the actual moving average, it’s suggesting average prices are expected to start moving higher.
And as a trader, very simply, we want to go ahead and get long the market. Now, as long as that blue line remains above the black line, the trend is still up. Now, what’s important understand is with a predicted moving average, what is an average, right? You’re going to trade above and below that average at times, but as long as you have this separation between that blue and the black line, that trend is still up. Now, in addition to that a predictive indicator, you’ll also see that there’s a green and a red bar at the bottom of your screen, and this is the predicted neural index. And what it’s doing is it’s a very short term forecast, so looking ahead 48 hours, and it’s often a really great time when you’re in an uptrend to understand when some weakness is coming in. So as long as that blue line is above the black line, you can again look to go ahead and get long, but be prepared for that weakness ahead of time.
And, lastly, to really round out the entirety of these forecasts is the predicted high and low range, which is actually a predicted trading candle produced before each and every trading day. So you see before this trading day comes in, you’ve got a prediction of the high, a prediction of the low, and that’s what you can use to manage these trades as the market rolls forward. And you see how this works, that if you’re ready and prepared to be a buyer at these predicted levels, you’re getting picked up and almost immediately these markets are moving into profit here. And again, as long as that blue line or that predicted moving average is above the actual moving average, you want to maintain that position. It’s telling you that the trend is up.
So you see here about seven, eight, nine entries or so and a fantastic opportunity where the markets are essentially moving straight up. And you see this second candle here would have been a day where you’d be looking to be a buyer. Markets up almost 18% in just the last 39 trading days. So really about a couple months time here. Now, it’s important to understand though that it’s not all strength in the market. While the S&P has looked very strong, there is some weakness out there. And so you want to find those areas where you can actually look to go ahead and short the market.
And you see that in this area of Dick’s Sporting Goods, we get this crossover to the downside, really in the midpoint of April there. And really there’s been a lot of stocks that have really been moving much, much lower. You’ve got things like Skecher, Checkpoint Software, some of these things with big gaps on the chart, and you want to know where to avoid these certain instances. So here in Dick’s Sporting Goods though, we have a crossover to the downside. You can actually scan through the software and identify all these fresh crossovers that come through. But recognizing that, look, you do not want to be long here. If anything, look to short the market. And again, use those predictive tools like the predicted highs and lows to determine, okay, well if I’m coming in intra day, what’s a good level for me to take these positions. And you see how the software adapts moving forward and lets you know, hey, what do you need to be prepared for? Overall, the trend very much to the downside here, but you see two entries really at the beginning of this trade and this market moving much, much lower. And now we’re really starting to see some market weakness.
You really, really need to have some hedges out there and some areas where you’re short the market. As we see oil prices really starting to turn around, had been in a four-month uptrend, starting to turn around, in addition to some of these oil stocks. You’ve got things like Dick’s here down over 10% in just the last nine trading days. So great opportunities to trade some options, limit that risk via the options market, but really capture a significant move as these markets move lower.
Now I really just want to touch on this theme of what’s going on with oil because we had such a great rally for four months straight since the beginning of the year. Same with stocks, they’ve really been in tandem, moving straight up. But here in Baker Hughes, you see that, okay, well we’ve gotten this crossover to the downside and you have these periods where the neural index will become a little bit bullish. And you’ll see you’ll get that volatility, but the blue line is still very much below the black line here, signaling that the trend is still down. And so when you see these areas and you understand, okay, well what’s going on here in this stock? What’s going on in energies more broadly, you can start to build a case and know where you should focus your attention. So again, you see, within a couple of days of these predicted highs being reached, oftentimes intra day, you’re moving into profit and we’ve got one, two, three, four, five, six, seven, eight entries as this trend continues. So imagine being able to trade with profits, use the profits you’ve accumulated to add to your position and really minimize the risk, but capture some of this downsides. So you’ve got a 15% decline over $4 per share on a $20 stock, a very significant move. And now you see oil prices really starting to move lower pretty aggressively.
Baker Hughes Corporation ($BHGE)
And you see, when you’ve got things like Baker Hughes … We come over to Halliburton here. Well, okay, well more crossovers in the energy space. A crossover to the downside again, so what do you want to be doing? You see the neural index just saying down, down, down. Well look towards your predicted highs. And you see you get these really nice entries and the ability to target the predicted lows as an intra day trader, but not lose sight of that trend. Because when these trends really pick up, sure enough, you’re going to blow past those intra day levels and things can get really, really bearish very, very quickly. So you want to make sure that you understand, hey, the trends have changed. Now let’s go ahead and look to actually short the market. We see this market off 12% in seven trading days and you see more recently understanding energies are getting weak, where do we want to look to trade?
Encana Corporation ($ECA)
Well, here’s Encana here, crossover to the downside, lot of weakness signaling, okay, well predicted highs, where do we want to be short? This is a great area intra day to be short. So you’ll see a lot of times with these predicted levels that yeah, you’ll move a little bit past the level, but then you’re closing below that level. And so as long as you can deal and manage your risk in a way that you can deal with volatility over a couple of days, you’re going to be taking excellent entries into these markets and you see these things really starting to, I would imagine we’re at this predicted low already here, and things moving off. Again, that’s a 12% move in three trading days. So very significant things happening out there in the equity space. You want to be prepared. If you’re still in an uptrend from the beginning of the year where we had all the stocks turn up, great, but things have started to change over the past couple of months. And you’re seeing that weakness in the S&P really slowing down to the upside and energies just seem to be completely reversing.
So again, some really great opportunities. Best of luck to all you traders out there in the markets. Of course, thank you all for watching. Once again, this has been our Hot Stocks Outlook for May 3rd, 2019. Thanks again, and bye for now.