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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($SPY), American Express ($AXP), iShares Russell 2000 IDX ($IWM), Rambus ($RMBS), CarMax ($KMX), iShares US Home Construction ($ITB), Builders First Source ($BLDR)
SPDR SPY ETF ($SPY)
Hello again, Traders, and welcome back to the Hot Stocks Outlook for July 12, 2024. I hope you all have had a nice week out there in the financial markets. As always, we’re going to take a look at the most recent VantagePoint predictive forecast. If you haven’t already, make sure you go ahead and click on the link in the description below, and you can sign yourself up to get a live demonstration and learn all the specifics about how these predictive technologies can help you make much better trading decisions in the marketplace.
iShares Russell 2000 IDX ($IWM)
Uh, and so, a very interesting week in the market here, and you can see that I have the chart up for the iShares Russell 2000 Index ($IWM)—so, some of the smaller-cap stocks. And as we typically do each week, we like to look at the SPDR S&P 500 ETF Trust ($SPY), and so I think something very interesting might be going on here as we see we’re up about 17, almost 18% year-to-date. That’s obviously been led by a lot of those big stocks like NVIDIA Corporation ($NVDA), Apple Inc. ($AAPL) has had a great run, um, and certainly Tesla Inc. ($TSLA) has had a recent rally, but we’re starting to see things run a little sideways as those larger-cap stocks really start to weigh down the indices.
And so what’s really interesting, uh, is that we see that this iShares Russell 2000 Index ($IWM), some of these smaller-cap stocks, we have a bullish crossover as far as our predicted moving average, and this is a really good, uh, chart to go over and really highlight some of the interesting things that are playing out throughout the marketplace. So what we have here with the iShares Russell 2000 Index ($IWM) is daily price action, right? So each one of the candles that you see there, that’s going to represent a full and complete trading day, and it’s right up against that price data that you’re going to see that there’s a black line and also a blue line value.
Now, what that black line value is, is actually a simple moving average, or what we referred to as the actual simple moving average, and in this case specifically, it’s a 10-period. So it looks back at the last 10 close prices, adds them all together, and then divides by 10. And what that does is smooth out the existing price action, but there’s really no predictive capability there, right? It’s just going to plot the most recent close and react to where the market has most recently closed. But what VantagePoint traders are able to do is compare that black lagging moving average to this proprietary predicted moving average, and for that number, essentially a calculation of future prices for that to get calculated and plotted on the chart every evening. Well, this is where the technology of artificial neural networks comes into play, and what these networks do is understand a lot of the relationships that drive and influence the future price of the target market in question, or in this case, iShares Russell 2000 Index ($IWM).
Now, if we think pretty broadly, we can think well, there’s probably some market relationship shared with things like SPDR S&P 500 ETF Trust ($SPY) or maybe Dow Jones Industrial Average ($DJI), but it’s also going to find individual stocks, maybe within the index, that share valuable price clues on where things are headed next, and it can even look at things like the value of the dollar index, which I think is a big part of this, as we see gold has shot up, dollar’s gone lower, and a lot of stocks, even though the indices have gone lower, a lot of stocks have done really, really well, uh, and so it’s able to take all of this into account and then generate these highly accurate predictive forecasts that traders can use to manage their positions and even identify new opportunities.
And so we see as that blue line crosses above the black line, again, this being an ETF, so really smoothing a lot of the averaging out, but about a four, almost 5% rally here in the last 10 trading days. And what we can do, like we do each week, is actually look at the predicted high and low range that’s provided for each one of these trading days. So, in addition to that overall trend, you’re provided an intraday prediction of what the daily range is expected to be, and typically, in these videos, we go back and we look at all of those ranges against the actual market data.
So what we’re seeing here is that earlier on in this move, there were opportunities where we moved down to this predicted low, you see that we bounce around across these levels, but really offering extremely valuable areas to accumulate a position and be involved before we get this move higher, uh, in iShares Russell 2000 Index ($IWM). Now, that’s very valuable information because it lets you know, hey, maybe we should look towards some of those smaller-cap stocks and maybe get away from the big NVIDIAs ($NVDA) and Micron Technology, Inc. ($MU), and Broadcom Inc. ($AVGO), and some of these bigger stocks.
Now, last week we actually looked at American Express Company ($AXP), and I think this is a good example to just highlight how things move forward. So, it was very early on in this trend where we see this blue line crossing above the black line. This is probably a valuable time to explain the neural index. So, this indicator at the very bottom of your chart here, uh, now you’ll see that you have a bar that goes from green to red and back to green, and this is another indicator that’s utilizing those neural network relationships, but it’s an indicator tuned to solve a different problem for the trader. In this case, it’s a 48-hour indication of short-term strength or weakness in the market. So again, depending on your trading style, you may want to incorporate this and use this in different ways, and we even have features where we can plug these predictive indicators into scanning features. So whether we’re trying to identify new trends or manage existing opportunities, well, we can use a lot of these tools moving forward and identify the best places to do that. So you’ll notice that we get a little bit of weakness over those subsequent 48-hour trading days, but again, we can look towards those predicted highs and predicted lows. And so just like last week, there were some great entries intra-week and intra-day in American Express Company ($AXP) to get this trend started, and sure enough, this next week over the last five trading days, well, boom boom, coming off these predicted highs and then even, uh, yesterday an entry where you moved down to that predicted low and closed higher still. So nice opportunity here in American Express Company ($AXP), uh, you know, plenty of just trail your stops at this point. If we get the trend moving higher here, you might have a really nice opportunity.
Um, but let’s go ahead and pivot over to Rambus Inc. ($RMBS), some of these stocks that maybe don’t get a lot of attention but are tech stocks, but even doing quite well, even as we see some of this volatility coming to the market. So here you see shares of Rambus Inc. ($RMBS) and a very straightforward forecast, right? Blue line over black line, neural index bullish every single day, and sure enough, you’ve got a pretty extreme rally here. So it really helps you understand, look, just stay long in the market. Uh, we’ve gotten a really nice rally of 177% in just the last 10 trading days, and of course, we can look towards, well, where were those predicted high and low levels really screaming at you to accept the position. So you see moving down to that predicted low really immediately, uh, this market is starting to go higher again here and again here. Of course, much later in the trend after a 16% push here, uh, just in the last couple of weeks here.
Um, now another example I just wanted to highlight here is CarMax Inc. ($KMX), and kind of like American Express Company ($AXP), just to highlight that, you know, sometimes we’re going to get these periods where you see the neural index is bullish, bearish, bearish, bullish, but the market’s not really going anywhere. But nonetheless, the overall forecast is saying what the overall trend here is up. We’re going to get that weakness over these subsequent 48-hour periods as highlighted by that neural index at the bottom of the chart. And this is where, again, those predicted highs and lows can guide the trader over potentially several weeks where the market’s not really doing much, but you see as you move down to these predicted lows, bounce off the predicted high, there’s an opportunity there. Uh, again, moving pretty close to these predicted lows, this day is actually in between the going from one week and one month to the next, and so you see you get a little, uh, illiquidity. You never move down to these levels, then you shoot down actually on July 1st, and then we’re back to moving down a predicted low, predicted low before we get this really nice push in the market most recently. But of course, plenty of opportunities here to buy, take profits on longs, uh, and sort of rinse and repeat here, uh, with the positioning. So you see about a 1% rally just in about 18 trading days, but numerous opportunities where you’re bouncing quite a few percent there, moving back, bouncing again, uh, and moving forward.
iShares US Home Construction ($ITB)
And so lastly, I just wanted to bring in, actually, this is very, very recent, but iShares U.S. Home Construction ETF ($ITB), we’re certainly seeing a lot of strength, uh, in homebuilder capital goods, a lot of the homebuilding stocks. And so, uh, here you see this neural index getting bullish and actually getting the crossover here. So going into what would have been Thursday, seeing all this strength around the broader homebuilding space. And so this is where, depending on your trading style and approach, VantagePoint offers a lot of these scans that can help you identify really early when a lot of these trends are shifting here.
So if we look at this last opportunity here in Builders FirstSource, Inc. ($BLDR), got a actually a faster moving average. This is the first time I’ve really brought this through, but traders, again, depending on how quick you want to recognize some of these pivots in the market, here you see Builders FirstSource, Inc. ($BLDR) getting that blue line above the black line, neural index bullish for four days in a row, and of course those predicted highs and lows working all the same. So intraday, you know, if you want to try to buy down at these predicted lows, can offer some good levels to see how things progress moving forward, uh, and eventually getting that really nice move here, uh, in this case, about a 7, even 8% rally just in a single day here. So there’s really nice opportunities, but what I want to actually show you here, so I wanted to bring up the, uh, profit calculator here, about a 10% move there. What I wanted to show you was some of these scanning features, right? So again, depending on, you know, exactly what criteria you want to look for, we can set a lot of these indicators that are all loaded with that neural network predictive data and identify some of these new opportunities, uh, spread out throughout the marketplace. So depending again on your trading style, your time frame, this is where we can always utilize these tools to identify some of these fresh shifts in the marketplace and really get ahead of these things so that we can benefit, uh, as volatility picks up. And again, maybe it’s some of these small-cap stocks that really want to move higher. The construction stocks, uh, might be some really nice opportunities here over the next couple of months.
So, uh, have a great rest of your week. Once again, this has been our Hot Stocks Outlook for July 12, 2024. Thank you all for watching, best of luck, and bye for now.
