Below are five stocks to watch according to VantagePoint, a platform that uses artificial intelligence and intermarket analysis to predict price movement. Today the focus is on steel stocks, which have been on a run to start 2018, and how the breakouts were forecasted back in November.
What's On The Charts
Each candle on the following stock charts represents one day of trading action.
The black line on the chart is a simple 10-day moving average.
The blue line is generated via the AI in VantagePoint's intermarket analysis. It forecasts what the moving average will be 48 hours in advance.
A trend shift is represented by the two lines crossing. As long as the two lines don't cross, the current trend remains intact.
The red/green bar below the candle chart is a Neural Index. It determines whether a stock will move higher or lower in the coming two days.
This Week's Hot Stocks
Amazon
Amazon.com, Inc. AMZN had a predictive moving average crossover to the upside in early January, indicating a bullish trend. This bullish signal predated the company's Feb. 1 earnings beat, which drove the stock to fresh all-time highs.
On Jan. 3 the predictive blue line crossed over the 10-day simple moving average black line, marking the beginning of the trend. Since then, the stock is up over 21 percent. During this time the Neural Index has also largely stayed in the green, indicating a prolonged period of short-term bullishness
Huntington Bancshares
Huntington Bancshares Incorporated HBAN has a similar tale. The stock had a bullish crossover to the upside on Jan. 3 with a mostly green Neural Index, and is since up about 9 percent. The stock is currently trading at levels not seen since November 2007.
Anika Therapeutics
Anika Therapeutics Inc ANIK follows the same general principle. Its bullish crossover occurred in late-December and was likely triggered by the announcement that the company had received FDA clearance on a bone void filler. Though analyst Michael Petusky doesn't believe the approval will be a significant revenue driver in 2018, the stock is still up over 20 percent since the news.
Despite the trend nearly reversing on Jan. 10, the bullish trend remains intact as long as the two lines don't cross.
Marriott
Marriott International IncMAR's bullish crossover occurred back in September. Since that time the trend has come close to reversing, but hasn't. In fact the stock has moved higher at a nice pace, steadily moving to all-time highs. Marriott will report Q4 earnings on Feb. 14 after market close, so traders and investors should have that on their radar as a potential catalyst.
Nvidia
NVIDIA Corporation NVDA's crossover to the upside happened in mid-December. Despite a period of consolidation through the end of December, that uptrend continued. Since that crossover of the blue line 31 trading days ago, the stock is up about 25 percent. Nvidia reports Q4 earnings on Feb. 8 after the market close.
Watch the full Hot Stocks Outlook below
About the Hot Stocks Outlook
The Hot Stocks Outlook is a weekly series. It’s designed to show traders how improving their timing is the key to maximizing gains and minimizing losses. VantagePoint Trading Software identifies trend reversals with up to 86 percent accuracy, helping traders get into the right side of trades at just the right time.
