I Know First Weekly Review Algorithmic Performance: May 24, 2020

I Know First
Weekly Newsletter | May 24th, 2020

Good morning, I Know First universe.

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

  • Top Trade Ideas – Best Small Cap Stocks Based on Deep-Learning: Returns up to 62.05% in 3 Days
☆ Beat Corona with AI: Top 20 Stock Picks For This Week+ Top 20 Stocks For Short Position ☆

Need to Know First!

  • Best Dividend Stocks Based on Algorithmic Trading: Returns up to 131.18% in 7 Days
  • Energy Stocks Based on Big Data: Returns up to 156.65% in 14 Days
  • Shopify (SHOP) has gained 151.98% since I Know First produced a bullish forecast for the shopping stock 1 year ago on May 1, 2019.
  • Microsoft (MSFT) Stock is up 26.42% in the last 3 weeks since April 4, 2020 as predicted because of the massive company’s strength in the face of a global pandemic.
  • Facebook (FB) has resulted in returns of 12.44% since April 3, 2020 when an upside forecast explained how rebranding to Microsoft 365 can boost the blue chip stock even higher.

Weekly Winning Forecasts

3 Days

High Volume Stocks: 83.65% Yield
Best Dividend Returns: 22.3% Avg
Top 10 Stocks: 35.99% Return

7 Days

Best Energy Stocks: 63.0% Avg
Top Dividend Stocks: 131.2% Yield
Strong Buy Stocks: 34.22% Return

14 Days

Aggressive Stocks: 47.43% Avg
Strong Buy Stocks: 24.13% Return
Options Outlook: 52.73% Yield

1 Month

Best in Biotech: 145.91% Return
Options Outlook: 25.87% Average
Stocks Under $10: 153.81% Yield

3 Months

Volatility Trading: 237.77% Yield
Best in Biotech: 141.71% Return
Gold Outlook: 9.49% Average

1 Year

Best in Biotech: 107.05% Return
Top Tech Stocks: 17.32% Average
Best Medical Stocks: 56.0% Return

☆ Helping Your Portfolio Beat the Market and Coronavirus with AI: Top 20 Stock Picks For This Week☆

Snippets From Our Top Blog Posts For The Week:

Stay Ahead Of The Curve: AI Weekly

How AI Can Help You Not To Fall To Bull Or Bear Traps In Corona Times

In a bull trap, the market indicates a false signal that is trending up and then goes back to the original trend. The bear trap is the opposite of the bull trap when there is a false trend down just to restore the original trend. All markets are susceptible to suffer from these traps. Asset markets, including equities, futures, bonds, and currencies already have a history of both bear and bull traps. By misunderstanding the situation of the market, it becomes very easy to invest wrong in these situations. 

Since the coronavirus outbreak (now a pandemic), several stocks and indexes around the world suffered a massive hit. Currently there is a recovery occurring, however, there are discussions if we are in a bull trap right now. When we talk about avoiding losses in stock markets during the Coronavirus pandemic, there is no better way to minimize the risks than conducting your decision in a solid analysis. And here is where I Know First excels thanks to its advanced machine learning algorithm. Using the algorithm of I Know First, it is possible not to avoid losses in cases of a bull trap, but also to profit. This algorithm provides forecasts for different time horizons with a very good hit-ratio, indicating that yes, it is possible to profit and avoiding risks at the same time.

Read more.

FB Stock Forecast: Why You Should Buy Additional Shares of Facebook

The recent approval of a D.C. federal judge of Facebook’s $5 billion fine is a very compelling reason to buy more FB shares. This $5 billion fine will make the greedy people at the U.S. Federal Trade Commission forget about Facebook’s Cambridge Analytica-related privacy violations. Facebook touts a cash hoard of almost $55 billion and an annual net cash flow of $36.31 billion. Paying the $5 billion fine is a cakewalk for Facebook.

A current tailwind that could also boost FB toward my price target of $200 is the launch of Messenger Rooms. This new videoconferencing app is Facebook’s equalizer to Zoom. The vulnerabilities of Zoom’s video conferencing app convinced me that Messenger Rooms can quickly disrupt Zoom’s current popularity. Going forward, Messenger Rooms is a secured video app that complements Facebook WorkPlace. The work-from-home new normal is increasing adoption of WorkPlace.

Since this forecast was posted, FB has already jumped 8% since this bullish forecast was posted on April 27!

Read more.

AI vs Technical Analysis: Can AI Improve Your Stock Trading Strategies?

Traders are constantly making many decisions at a moments notice. Some decisions involve entry positions, position size and exit point. Extrapolating chart patterns may help us make correct calls. As humans, we are visually inclined. We tend to see things more than we may hear. Looking at diagrams, we can identify patterns and use them to aid in making our decisions. Price patterns often repeat. So technical analysis allows us to make decisions, without being influenced by noise made by other investors and experts. However, there are disadvantages to technical analysis such as human bias, emotions, and identifying correct entry and exit points. 

Machine Learning and different techniques created new systems to spot patterns which the human brain is not capable of. Since finance is quantitative, AI in stock trading is gaining traction. Financial corporations endowed heavily in AI in the past, and they investigate and implement the financial applications of machine learning (ML) and deep learning to their operations. The I Know First Market Prediction System models and predicts the flow of money between the markets. It separates the predictable information from any “random noise”. It then creates a model that projects the future trajectory of the given market in the multidimensional space of other markets. By accessing this information through I Know First’s daily market forecasts, AI can improve your stock trading strategies. 

Read more.

Top S&P 500 Stocks Performance Report By Day Of The Week By I Know First Evaluation

Is there a best day to start trading with I Know First AI signals? The purpose of this report is answer this question presenting the results of our live forecast performance evaluation for I Know First AI Algorithm, specifically for S&P 500 Stocks. The following results were observed when signal and predictability filters were applied, picking the top 5 signals out of the 30 most predictable ones. Also, the results were filtered by the day of the week the forecasts were generated and compared with the S&P 500. 

The performance report has many highlights. No matter the day and the time horizon, the average return of the I Know First Algorithm is always positive. Moreover, there is a clear increasing trend for returns improvement with the time horizon. That being said, Monday and Wednesday had higher returns on the short-term horizons on average. Overall, the algorithm results consistently outperform the S&P 500 in every condition.

Read More

ATVI Stock Forecast: Why You Should Buy More Shares of Activision Blizzard

Activision Blizzard (ATVI) has more upside potential this year. The boom in video games during this global pandemic will help ATVI reach $73 within the next 12 months. Quarantines around the world will force even non-gamers to become one. COVID-19, therefore, is a long-term tailwind for video game companies like Activision Blizzard. ATVI is a golden long-term investment because management is being more aggressive on mobile games. 

The forced stay-at-home quarantining of billions of people around the world is a boon for King Entertainment. You should add or buy more ATVI because there are now more active players of Candy Crush mobile games. The Candy Crush Saga game’s estimated March 2020 net sales were $32 million from iOS and $24 million from Android. Candy Crush Saga’s April combined net sales would reach as high as $62 million due to stay at home orders. The same could also be said for May 2020. ATVI also has other games that will benefit from increased time at home and now is the perfect time to add to your portfolio with earnings being reported on May 5. 

Read more.

Want to learn more?

Letter from the CEO

Dear Readers, 

Stocks were essentially flat last week. Both the Dow Jones Industrial Average and the S&P 500 shed less than 0.3% as first-quarter earnings reports started flooding in. Indexes are lower by over 12% so far in 2020, but have recovered significant lost ground in recent weeks. What about the 7 days forecast of the I Know First predictive algorithm? It was another interesting week with multiple opportunities. Over the last week, I Know First’s dividend package outperformed the major index. Some of the stock picks among this package were QEP, PTEN, PBF and WES, With a return of 131%, 60%, 56% and 39.5% in just 7 days. The same package had high outperformance also in the 30 day time frame led by BKEP, PETS with 83.7% and 48.8%. These weren’t the only phenomenal results the dividend package posted; over 14 days the best dividend stocks led to gains of 51.5% and in just 3 days led to gains up to 83.65% thanks to stocks like QEP. Dividend stocks are companies that pay out regular dividends. Dividend stocks are usually well-established companies with a track record of distributing earnings back to shareholders. You can join to this interesting package right here.

Dividend stocks were not the only successful package of the week! The top 20 and top 10 stock packages has also outperformed in the 14 day, 7 day, and 3 day time frames. Several companies will announce highly anticipated earnings reports over the next few trading days, including Shopify, Walt Disney, Activision Blizzard, PayPal,CVS and TEVA. Do you wish to know what is the updated AI based forecast for these stocks? Do you want to analyze your own portfolio receive a daily custom AI based forecast for your own stocks? Just contact us at [email protected] and we will send you more details!

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 top-left symbol?
A: The top-left symbol is the stock ticker for each forecasted stock.

Q: What is the middle-right number? 
A: The middle-right number is the signal. The signal expresses the direction and magnitude the algorithm believes an asset will move. A positive signal denotes a long prediction and a negative signal denotes a short prediction. A strong signal indicates that algorithm believes that the stock will move by a large magnitude. A strong symbol varies by the market being analyzed — the stock market has relatively large signals because it is volatile while the currency market has relatively small signals because it’s movements are less pronounced.

Q: How do I analyze an asset’s signal?
A: When analyzing an asset’s signal it is important to compare its present signal relative to those of other assets in its asset class as well as to its own historical signals. The absolute number of the signal is relevant only in these three contexts:
1. In comparison to the other stocks in the table, and
2. In comparison to the previous signals for the same stock. (See the graphs in the published articles).
3. In relation to the stock price at which each previous signal was issued.

Q. What is the return?
A. The return is the percentage movement of each stock multiplied by 1 if the algorithm suggested a long position or multiplied by negative 1 if the algorithm suggested a short position. In other words if the algorithm correctly predicts the direction of the stock, the return is the positive percentage change of the stock, and if the algorithm incorrectly predicts the direction of the stock, the return is the negative percentage change of the stock. The return is the last end of the day price at the target date of the forecast VS the price when the forecast was sent (the end of the day price of the previous day).

Get Access to the Latest Daily Market Forecasts!

Commodities, Gold & Currencies

Commodity Outlook Based on AI:
Returns up to 20.74% in 14 Days

April 30 | Read More

AI Based Commodities Outlook: 
Returns up to 14.99% in 3 Days
April 30 | Read More

AI Commodity  Forecast:
Returns up to 15.93% in 7 Days
April 30 | Read More

Exchange Rate Predictions: 
69.232% Hit Ratio in 3 Days
April 30 |
Read More

Currency Forecast by AI:
65.38% Hit Ratio in 7 Days
April 30 |
Read More

Forex Market Forecast:
63.46% Hit Ratio in 14 Days
April 26 | Read More

Weekly Apple Stock Update

This week’s Apple Stock News discusses how Apple smartphone market share is increasing in China.

According to the research firm Canalys, both Apple and Huawei increased its market shares in the smartphone area in this year’s first quarter. Apple stock increased by 3.41% in the opening after the announcement. Even though Apple shipments fell more than 4%, its share of the market grew to 8.5%, comparing to 7.3% last year. Huawei is still the market leader, increasing to 41.4% of the market share.

Additionally, in an announcement, Apple CEO Tim Cook said that the company’s retail stores are expected to open in Austria and Australia in one or two weeks. Also, Cook said that the company’s main campus in Cupertino, California, will not be reopened before June. He said that it would open on a staggered basis with temperature checks, social distancing, masks and that the company is looking into testing.

On top of that, Apple is deciding to delay the mass production of 2020 flagships iPhones. The decision was announced by the Wall Street Journal that had access to people familiar with the changes. The decision came in consequence of the pandemic impact in the world.

Read more.

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