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.
Caterpillar
After a period of several weeks in which it was in a tight trading range, Caterpillar Inc. (NYSE: CAT) had a predictive moving average crossover to the upside in
mid-November following a rally in the steel sector. The trend has remained intact since then, even though it's nearly reversed
several times. In fact, it's actually appeared to get stronger in recent weeks. Since the initial bullish crossover, the stock is
up over 20 percent.
Commercial Metals
The steel rally in November also included Commercial Metals Company (NYSE: CMC), which is up over 42 percent from its low on the 15th. also had a crossover to
the upside in late-November. The Neural Index becoming green also indicated that upside was coming. Since then, the stock has been
buoyed by an acquisition and very strong Q1 earnings results.
U.S. Steel
United States Steel Corp. (NYSE: X) is up 35
percent since its bullish crossover on November 15th. had a bullish crossover in late-November. Despite a near-reversal following a
midday JP Morgan downgrade on Dec. 12, the trend has remained intact. All eyes will be on U.S. Steel on Jan. 31 when they
report earnings after the bell.
Nucor
Nucor Corporation (NYSE: NUE) followed the
same pattern. It had a crossover to the upside in mid-November, indicating to traders that a bullish trend was starting. Since then
the stock is up 30 percent. Nucor reports Q4 earnings Jan. 30 before the bell.
Alcoa
Alcoa Corp (NYSE: AA)'s crossover didn't
come until December 11. This was immediately followed by an upgrade to Outperform at Credit Suisse. Since the day of the
crossover, Alcoa is up 36 percent. Alcoa reports Q4 earnings Wednesday after the bell.
Watch the full Hot Stocks Outlook in the video 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.
VantagePoint is an editorial partner of Benzinga.
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