I Know First Weekly Review Algorithmic Performance: March 11th, 2021



I Know First
Weekly Newsletter | March 11th, 2021


FacebookTwitterWebsite
Good morning, I Know First universe.
We’re happy to share our best article and stock prediction of the week:
  • Top Trade IdeasEnergy Stocks Based on Stock Prediction Algorithm: Returns up to 31.8% in 3 Days
Top 10 Stocks to Buy Today Based on AI Algorithm + Top 10 Energy Stock Picks

Need To Know First!

  • Energy Stocks Based on Stock Prediction Algorithm: Returns up to 31.8% in 3 Days
  • ETF To Buy Based on Big Data Analytics: Returns up to 11.8% in 7 Days
  • Top S&P 500 Stocks Based on Genetic Algorithms: Returns up to 42.33% in 14 Days
  • Stocks Under 5 Based on Algo Trading: Returns up to 161.8% in 1 Month
  • Top High Short Interest Stocks Based on Algo Trading: Returns up to 627.05% in 3 Months
  • Best Stocks To Buy Based on Deep Learning: Returns up to 151.18% in 1 Year
  • Denbury (DEN) Stock returns up to 37.68% since January 24, 2021, following the record low oil prices and rapid changes in the energy market due to the COVID-19 pandemic.
  • GameStop (GME) Stock returns up to 822.57% since October 25, 2020, following the announcement of the partnership with Microsoft and the short squeeze.
  • HP Inc. (HPQ) Stock returns up to 71.98% since July 21, 2020, as the company became the second largest vendor in the PC market and achieved strong sales growth in Q2.

Weekly Winning Forecasts

3 Days
Energy Stocks: 31.8% Return
Implied Volatility: 10.9% Average
Options Forecast: 36.62% Yield

7 Days
Top Energy Stocks: 49.51% Return
Robinhood Stocks: 18.52% Yield
ETF To Buy: 7.79% Average
14 Days
Energy Stocks: 71.67% Yield
S&P 500 Stocks: 16.22% Average
Robinhood Stocks: 42.33% Return
1 Month
Stocks Under $5: 161.8% Yield
Energy Stocks: 95.74% Return
Top 10 Stocks: 15.92% Average

3 Months
High Short Interest: 627.05% Return
Hedge Fund Stocks: 721.03% Yield
Options Outlook: 104.46% Average
1 Year
Aggresive Stocks: 1258.51% Yield
Low P/E Stocks: 1427.54% Return
Top 10 Stocks: 70.43% Average
☆ Top 10 Stocks to Buy Today: Predicting This Week’s Winning Stocks By Using Deep-Learning ☆

Snippets From Our Top Blog Posts For The Week:

Stay Ahead Of The Curve: AI Weekly

Stock Market Forecast: Chaos Theory Revealing How the Market Works

Common fallacies about markets claim markets are unpredictable. However, chaos theory together with powerful algorithms proves such statements are wrong. Markets are chaotic systems with complex dynamics, yet to a certain extent, we can make valid stock market forecasts. Using these forecasts generated by cutting-edge predictive algorithms together with a careful risk management strategy may give a trader a significant competitive advantage.

Despite all the randomness, the self-learning algorithms created with a deep understanding of the stock market accompanied with a risk management strategy are advantageous for traders.

Read more.


Portfolio Strategies & Asset Allocation – 86.43% Expected Annual Return Using Algorithmic Allocation

Allocating your portfolio in a way that maximizes returns and minimizes risk can be tricky. In order to reduce volatility, high-yield strategies are often ignored. In theory, if you were able to pick one stock a day you were most certainly will go up – in order to maximize expected returns you would only invest in that stock. The downside, of course, is also maximizing your risk exposure.

The main advantage of this portfolio allocation is that it is a day trading model which is 100% systematic. Both the investment buy/sell decisions and allocation are based off the signal data; allowing any investor the peace of mind in separating emotion from trade decisions. Finally, with the advancement and cost-effectiveness of technology improving rapidly in recent years, data which was once available only to banks and large institutions are now also available to private investors – significantly evening out the playing field. Proper allocation and money management and the emotional influence of private investors are some of the main reasons most private traders are still unprofitable. This model looks to solve those two problems.


Read more.


Low PE Stocks: AI Stock Predictions Beat S&P 500 4 Times Amid COVID-19

The purpose of the Low PE Stocks report is to present the results of the live forecast performance evaluation for the I Know First AI Algorithm, specifically for Low PE stock. The results were observed when signal and predictability filters were applied to pick the best-performing stocks out of the most predictable ones. The period under evaluation is from 17th May 2019 to 1st January 2021.

The algorithm is outperforming the benchmark index throughout the time periods. If you are interested in short-term investment, the Top 5 Signals is a suitable option on a 2 weeks time horizon with an average return of 7.34% and a hit ratio of 57%. Given the severe turmoil in the economy due to the coronavirus pandemic, reflected in current stock prices and rolling P/E ratio, the I Know First AI-powered forecasting algorithm performed well. Definitely, investors can improve their investments by adding Low PE stocks to their portfolios by using the I Know First predictability indicator and signal values.


Read more.


Short Selling: How, When, and Why You Should Short Sell

The concept of short selling is often seen as something immoral or alarming to many traders. Traders often assume that because mutual funds and financial planners go long, it is more correct to do. When you short sell you are actually borrowing a stock at a fee, and selling it on the market. At some point, the trader “covers” his sale by repurchasing the stock at the current market price, and returning the shares to the lender. If the price is lower the short seller makes a profit, else he makes a loss.

I Know First’s interface macro is a great new tool for deciding on your trade positions. The algorithm successfully predicts stock trends over time, and on July 9th this was the prediction of our Top Stocks universe. Now those who invested and held mostly did pretty well for themselves; however, their prediction was sharply contradicting the current market trend.

All the annual subscribers who use the interface macro would quickly see that almost no long predictions were currently trending up. In contrast, almost all short-sell recommendations were plummeting in price.


Read More.


HTHT Stock Forecast: Amid COVID-19 Q3’20 Net Revenues Increased By 3%

Huazhu Group Limited, together with its subsidiaries, develops leased and owned, machined, and franchised hotels primarily in China. It operates hotels under its own brands and also operates hotels under brand franchise agreements that include Ibis, Ibis Styles, Mercure, Novotel, and Grand Mercure. The company was formerly known as China Lodging Group and changed its name to Huazhu Group in June 2018.

Since the end of March 2020, HTHT has risen by more than 106%. Currently, the short-term moving average crosses above the long-term moving average from July 2020, indicating a buy signal. The SWOT analysis shows that despite HTHT is loss-making now, Q3’20 net revenues increased by 3%, and HTHT’s is expected to become profitable in the next 3 years. The company has an efficient management team and trained staff, significant investment in technology, effective strategic partnerships, and big expansion plans over the next five years. According to the DCF analysis results, HTHT’s stock target price will be around $63. Therefore, I consider it the right choice at these current levels for long-term investments, and I take the buy-side on HTHT’s stock.


Read More.



Want to learn more?

Letter from the CEO

Dear clients,

The rotation out of tech and growth into more cyclical names in the financial, energy, and industrial sectors continued in the past week. The energy performance was up more than 10% with oil prices, which were at a near two-year high. Financials saw the next strongest move, gaining 4.3% for the week. As usual, our predictive algorithm was able to identify this as an opportunity to profit.

These increases were seen in our ETFs Forecast package. There, the AI correctly predicted 10 out of 10 returns, with the strongest signals coming from ETFs related to finance and energy sectors. FAS had the best return in the package with 11.8%. XOP and OIH, both related to the oil sector, had notable returns as well, of 11.79% and 10.62% respectively. IYG, from the financial sector, increased 3.72% in the 7 days time horizon.

Even though it was against the momentum of the market, the algorithm was still able to correctly predict returns from the energy sector. Our Energy Stocks Forecast, in the same 7 days timeframe, had an average return of 22.31%! This provided investors a 21.50% premium over the S&P 500’s return of 0.81% during the same period. The most notable return was 49.51% from CPE, while CLR and SM returns were also outstanding: 31.27% and 29.15% respectively.

The AI also identified opportunities in different time horizons. In the 14 days timeframe, the Energy Stocks Forecast had a 25.25% average return, while the S&P 500 registered a loss of 1.84% in the same period. CPE excelled with a return of 71.67%, while the NBR and MRO also registered solid yields of 51.67% and 42.33%, respectively.

Considering the financial sector, the Bank Stocks Forecast also had an impressive result. In a 14 days range, the package saw BWFG return 24.09%, while TCBI and PMBC registered yields of 18.64% and 13.64% respectively. The package average was 10.79%, while the S&P 500 returned -1.84% in the same period.


Our algorithm is working on a daily basis providing our clients with the best opportunities for their portfolios, regardless of the general trend about it. You can check here to receive today’s forecast.

Warmest Regards

Yaron Golgher, Co-Founder and CEO
Q&A With I Know First
I Know First’s Daily Market Forecasts And How to Interpret the Numbers
Q. What is the time horizon?
A. The time horizon is the suggested period of time to hold the suggested stocks. When we calculate the forecast performance, we do so from the forecast date through the end of the time horizon.

Q. What do the colors indicate?
A. The green boxes signify long predictions and the red boxes signify short predictions. The bright shades denote the strongest predictions.

Q. How should I use the predictabilities and signals?
A. It is recommended that investors consider both the signal strength and predictability, as a highly predictable stock that barely moves and an unpredictable stock that is projected to move drastically both make unattractive investments.

Q. Which time horizons should I follow?
A. The longer-term forecasts (1-month and 3-month) tend to have higher predictabilities as the algorithm can more easily spot long-term trends. We suggest following these two time horizons the most closely, but the more reactionary shorter term horizons are helpful in understanding the short-term volatility of the market. Perhaps if you see that a stock with a strong, positive 3-month prediction has a negative short-term forecast, it is a good idea to wait until the stock decreases in value before buying it.
Get Access to the Latest Heatmap + Daily Market Forecasts!

Commodities, Gold & Currencies

Gold Price Forecast:
Returns up to 0.74% in 3 Days

March 4 | Read More

Commodity Outlook:
Returns up to 8.24% in 3 Days

March 7 | Read More

Best Currency:
73.08% Hit Ratio in 1 Year

March 7 | Read More
Gold Forecast:
Returns up to 1.65% in 7 Days
March 7 |
Read More

Forex Forecast:
76.47% Hit Ratio in 3 Days
March 7 |
Read More

Commodity Price Forecast:
Returns up 4.57% in 14 Days
March 7 |
Read More
Find The Latest Top Commodities and Currency Pairs With AI Insight

Weekly Apple Stock Update

This week’s Apple Stock News discusses the expectation for Foxconn’s first-quarter revenue to rise more than 15% from a year earlier. Foxconn’s performance can be considered a leading indicator for iPhone demand, and therefore its positive outlook for the first quarter bodes well for Apple. Apple is expected to report a high revenue quarter following a strong showing in its seasonally strong December quarter.

According to Counterpoint, Apple increased shipments by 19% YoY and its market share by 6%. The Apple Watch Series 6 and SE did well, shipping 12.9 million units and accounting for 40% market share in Q4 2020. Apple’s market share consolidation can be attributed to the new Watch SE‌’s success, the mid-range Apple Watch option. The Apple Watch Series 6 and SE shipped 12.9 million units and accounting for a 40% market share in Q4 2020.

Moreover, upcoming iPhone updates will broaden the function of the “Find My” which is currently used to locate Apple’s own devices. After the update users can locate «non-Apple products» such as bags or keys. Apple’s iOS 14.5 update includes support for tracking third-party Bluetooth devices in the My app using a new «Items» tab, which takes advantage of the same My ‌protocol used for the Mac app. Probably, this is only a preview of Apple’s “AirTags” that can be attached to any item to be tracked by the iPhone.

Finally, the Competition and Markets Authority (CMA), an antitrust arm of the U.K. government, has launched an investigation into Apple’s business practices with the App Store. As the CMA pointed out App Store is the only way for developers to distribute third-party apps on Apple devices. It is also the only platform for Apple customers to access them. Apple’s App Store is a core growth area for the company. According to an analysis by CNBC, the App Store grossed more than $64 billion in 2020 revenue. That’s up from an estimated $50 billion in 2019 and $48.5 billion in 2018, according to the same analysis, suggesting that App Store sales growth accelerated strongly during the Covid-19 pandemic, as people sheltered at home and spent more time and money on apps and games.

Read more.
Get the latest AAPL forecasts in your inbox