I Know First
Weekly Newsletter | March 25th, 2020

We’re happy to share our best article and stock prediction of the week:

• Top Trade Ideas – Coronavirus Stock Market Forecast Based on Deep-Learning: Returns up to 271.83% in 7 Days

• Top Featured Article – How to Capture Stock Market Gains During Chaotic Coronavirus Times Using AI

Need to Know First!

• Best Stocks To Short Based on Deep Learning: Returns up to 62.5% in 14 Days
• Forex Forecast Based on Genetic Algorithms: Returns 90.38% Hit Ratio in Just in 3 Days
• Volatility Index (VIX) has skyrocketed 163.84% amidst heightened volatility resulting from the Coronavirus, as predicted in this article with a prediction from February 25, 2020.
• Copa Holdings (CPA) is down 64.20%since being featured as one of the top 10 stocks to short on March 3. The company has been hit by Coronavirus concerns and general stock market trends.
• MAR, DXC, and the S&P 500 have dropped 39.89%, 55.42%, and 26.32% respectively sine our 7 day top stocks to short forecast identified these tickers to have potential for large price movements.

Weekly Winning Forecasts

Stay Ahead Of The Curve: AI Weekly

How to Capture Stock Market Gains During Chaotic Coronavirus Times Using AI

The stock market is sometimes perceived as a chaotic mystery for the ordinary public and something that requires true trader instinct from players, besides just financial and economic knowledge and a calm head, to make the right decisions. Moreover, at times of great instability and crises markets become volatile and it is commonly referred as being unpredictable, chaotic, and dangerous to investors. However, the common sense meaning of those words may not be that scary once they are considered through the prism of modern technology and some fundamental economic concepts.

The Coronavirus stock market outbreak of 2020 that has caused significant impact onto many countries’ economies and sent all the major stock market indices, like S&P 500 and Dow Jones, sinking down by two-digits percentages over 2-weeks’ time. Algorithmic trading systems that are able to analyze the market and spot most promising market opportunities despite these difficult times. At I Know First, we utilize advanced self-learning algorithms to try and separate the predictable from the unpredictable. Using 15 years of historical data, the proprietary algorithm identifies which assets are best stocks to buy for long positions and which are the best stocks to short. Using a combination of I Know First’s daily prediction packages, it is possible to beat the sinking market, even in volatile times!

Read more.

Algorithmic Trading and Market Volatility

Stock markets are rather unpredictable. Sometimes there are stable periods, but other times the markets get chaotic, and stocks become volatile, just like they are now. Trading stocks in a volatile market can be risky, but there are some tips that can help us. Algorithmic trading is becoming so advanced that it is now able to make predictions even when the markets get volatile, using high-frequency computers. Technological developments have allowed investors to turn to such a form of trading. 

Algorithmic trading can reduce volatility by mitigating market frictions, being able to quickly respond to future markets, and adjust their position in the spot market. Additionally, choosing the right algorithm can minimize trading costs in volatile markets. At I Know First, we have a predictive algorithm that forecasts over 10,500 markets daily for 6 different time horizons. It attempts to discover the rules of the market, in order to give us accurate predictions. This algorithm uses artificial intelligence and machine learning to make very advanced predictions, using thousands of inputs, with each input affecting the output. The algorithm is completely empirical, eliminating any human bias, and preserving discipline. 

Read more.

Machine Learning Trading: The Stock Market, and Chaos

Have you ever wondered how the I Know First Algorithm is so accurate when there’s so many seemingly random and chaotic events happening all the time in the stock market? Well, the first thing to understand is there’s a key difference between random and chaotic events. There is a notable difference between chaos and randomness making chaotic systems predictable, while random ones are not. Real world processes may seem random to the untrained eye, but upon closer examination, we see that such processes are in fact chaotic. Natural processes such as seismic events, population growth, and stock markets are all examples of such systems and can be predicted with reasonable accuracy. Chaotic processes are controlled by three competing paradigms: Stability, Memory, and Sudden and Drastic Change.

Stability is seen in the stock market as a stock trend either increases or decreases. While the share price of the stock changes over the given time period, the trend is unchanging. There is also a degree of instability here because of what is called a “tired trend.” As a stock is rising and continues to rise, there comes a point when investors start to question how long the trend can continue as it has. As people begin to lose confidence in the trend the stability decreases. Memory is the influence that past events have on a current trend. A stock that has been known to rise will likely continue to do so. Drastic and unforeseen changes can also occur, completely reversing a trend with little or no warning. Black Swan events, as they are referred to, are themselves unpredictable but are useful in making future predictions. The cycles of rising and falling trends that occur in chaotic processes have varying time periods, quiet periods can be followed by a large jump or vice versa. Together, these properties of chaotic processes make it possible to make predictions about the system using probability. 

Read more.

Stock Market Success On Air: News 13 Visits I Know First and Builds Successful Portfolio

Israeli News 13 TV channel visited the wealth-tech company I Know First to shoot a story for the broadcast. The plan for the story was quite simple: the journalists would show up at the company’s Tel Aviv office, get a short brief about I Know First and its predictive stock markets forecast AI algorithm and then try to build two portfolios using the AI predictions.

More specifically, the Top 20 stock picks package would be used for the experiment. The first portfolio would be built for passive investment, which would just stay untouched throughout the review period, and the other for active investment, which would see buy and sell orders placed on a daily basis. Then, the reporters and external experts would check the performance of the portfolios to see if they manage to beat the benchmark, the S&P500 index. Of course, both portfolios were to be virtual, with no real transactions happening. The idea, after all, was to test the AI’s algorithm capabilities, not to set up a private investment fund under the guise of a TV show. The idea was to find out if the company lived up to its promise of delivering accurate stock market forecasts, relying on an advanced AI.

Spoiler alert: it did.

Read More

Creating a Coronavirus Portfolio: Stock Market Threats and Opportunities

COVID-19 is not only a problem for people’s health. As seen in the last weeks, stocks all over the world struggled. Global markets have already lost 3.6 trillion dollars in the last six days, a struggle that can also be seen in indexes like S&P 500, Dow Jones and Nasdaq. Of course, different factors impact the price of a stock. Coronavirus fears are dictating investor decisions when making choices regarding in the stock market. One good example of this situation is VIX, “the fear index”, which is up by 90% in the last week.

With the movement of the stocks over the world being influenced by the coronavirus, it is hard to predict anything without considering the effort to stop or at least to minimize the impact of COVID-19. Without any possibilities to contain the virus spread in the short term, the expectation is to see global markets to keep falling. Companies that depend on their huge industries in the most affected countries might as well have problems. Also, flight companies and their supply chain stocks might struggle with coronavirus. Without any signs of containing the spread, people would choose not to travel, impacting the flight companies’ profit. Since we don’t have an exact timetable to when the threat will be over, investing in companies with that profile seems risky.

At first glance, the biggest opportunity is the medical and biotech stocks. Companies attempting to create a vaccine such as Moderna have been reaping rewards. The opportunities don’t remain only in the medical and biotech area. A virus outbreak forces people to avoid crowded places and, of course, travel. Streaming services such as Netflix, Spotify, and Amazon Prime could get an increase in the number of viewers and this should boost their stocks. Video-games might follow the same path, which could help not only Sony, Nintendo, and Microsoft, but also companies of the supply chain such as Nvidia and AMD.

Read more.

Want to learn more?

• Algorithmic Performance: Stock Market Predictions: I Know First S&P 500 & Nasdaq Evaluation Report – Accuracy Up to 82%
• Algorithmic Trading Article: I Know First To Democratize AI-Driven Stock Predictions For All
• Stock Predictions in the Trump Era: Beyond Hype And Headlines

Letter from the CEO

Dear Readers, 

It has been a crazy month for the market! In February, both the Dow Jones and S&P 500 were trading at all time highs. However, more recently, these important indices has dipped into a bear market — a pullback of 20% from a recent peak — at the fastest pace on record, and have kept falling. With Friday’s close, the Dow is down 35.1% from its record finish, while the S&P 500 is off 31.9% from it’s highest value. The proprietary I Know First machine learning algorithm began to see negative signals in late February and began to emphasize and identify more bearish forecastssuch as top stocks to short. 

Along with the almost unprecedented drops, there has been a staggering increase in volatility as investors stay wary of Coronavirus and the long term impacts of the disease on the market. Throughout this time, the S&P 500 traded with closes of the index up or down no less than 4% for 7 days straight! record. The VIX, which is a measure of expected volatility for the S&P 500 over the next 30 days, closed earlier in the week at an all-time high. I Know First managed to capture this skyrocketing indicator through our unique volatility forecast.

Looking forward, there is light at the end of the tunnel, but we may still be stuck in the middle of it. When exactly we will emerge into the light is unclear, however, it is clear that time is the cure for everything, and although it may take some time for this to get figured out economically, it’s clear to us that eventually, stock markets will recover. It may be a year or two or more, but if you stay consistent with your strategy and get your cash to work here, you will eventually be rewarded. 

You may be wondering “how do they know?” Well, chaos theory reveals how the market works and our AI algorithm can find the opportunities amongst the craziness. Don’t miss out because the headlines in the news say the world is ending, because it isn’t. There will likely be more social distancing, more pain, and more isolation over the next few months. However, the world has had worse things to deal with and come out stronger – this time will be no different. 

In times like these, though, it’s worth considering what being an investor is all about – buy low and now is the time to take advantage of that. Beside the best stocks for short position, even in these market conditions our algo was able to find some opportunities in Japanese stocks, defensive stocks,  and currency pairings. 

In order to easily identify even more opportunities in this tumultuous period, we have launched a special new package: Coronavirus Stock Market Forecast which can identify the threats to your portfolio as well as the opportunities you’re missing out on! You can get access to this helpful package here! 

It’s important to pay attention to the right market data, analysis, and insights on a daily basis by using the most updated forecast that I Know First Predictive Algorithm is generating. Being a passive investor puts you at unnecessary risk. When you stay informed on the most updated signals and indicators, you’ll take control of your financial future. 

Warmest Regards

Yaron Golgher, Co-Founder and CEO