Algorithmic Trading

This stock market forecast includes the best stocks determined by the algorithm with a market capitalization of less than a billion dollars.

• 10 Best Small Cap stocks for the long position
• 10 Best Small Cap stocks for the short position

Package Name: Small Cap Stocks
Forecast Length: 7 Days (8/25/2015 – 9/1/2015)
I Know First Average: 27.80%

The top performing stock from the 7 day Small Cap Stock Package forecast from 08/25/2015 was BTH. It had an outstanding return of 103.77% during the predicted time horizon. Other stocks with notable returns were MTL and ACI. They had noteworthy returns of 68.66% and 61.87% respectively in just 7 days in agreement with the algorithm’s prediction. In fact, 8 of the 10 stocks increased in accordance with the algorithm’s prediction. The I Know First average return from the forecast was 27.80%, which offered a clear advantage to investors over the S&P 500 return of 1.09% during the same time period.

Arch Coal is an American coal mining and processing company. The company mines, processes, and markets bituminous and sub-bituminous coal with low sulfur content in the United States. Arch Coal is the second largest supplier of coal in the U.S. behind Peabody Energy. The company supplies 15% of the domestic market. Demand comes mainly from generators of electricity.

The company’s shares plunged on Tuesday by roughly 30% to $6.46 after an astonishing week, where its shares went up by more than 140%. The large decrease in stock prices happened after analysts at JPMorgan issued a negative note on the coal sector. Specifically, this sector is being pressured by an abundance of shale gas, analysts stated. Additionally, the demand for coking coal is stalling in the U.S. and globally.