I Know First Weekly Review Algorithmic Performance: September 24th, 2020

I Know First
Weekly Newsletter | September 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 – Options Predictions Based on a Self-learning Algorithm: Returns up to 395.34% in 3 Months
  • Top Featured Article – Tesla Stock Predictions: AI-Powered Predictive Algorithm Shows Precision Up To 100% Amid COVID-19
★ Top 10 Stocks For Today On Deep-Learning Algorithm + Top 10 Stocks to Short ★

Need To Know First!

  • Trade Ideas Based on Data Mining: Returns up to 86.31% in 3 Days
  • Top Stocks to Buy Based on Big Data: Returns up to 55.09% in 7 Days
  • Stocks to Buy Based on Deep-Learning: Returns up to 76.18% in 14 Days
  • Undervalued Stocks Based on Deep Learning: Returns up to 78.36% in 1 Month
  • Top Technology Stock Picks Based on AI: Returns up to 169.27% in 1 Year
  • Immunomedics (IMMU) Stock is up 171.61% since June 4, 2020 as market for breast cancer drugs is expanding with growth rate of 10% and IMMU’s revenue believed to triple in the next year.
  • Tesla (TSLA) Stock is up 61.86% since July 9, 2020 as Tesla beats sales expectations by delivering 90,650 cars in Q2 and solar panel price reductions make Tesla lowest cost option to go solar.
  • Taiwan Semiconductor (TSM) Stock returns up to 61.10% since May 26, 2020 as other Chinese phone vendors make up for loss of Huawei as customer and TSM continues to boast excellent balance sheet.

Weekly Winning Forecasts

3 Days
Aggressive Stocks: 25.08% Average
Implied Volatility Picks: 67.19% Yield
Top Options Picks: 24.73% Return
7 Days
Top Aggressive Picks: 20.4% Avg
Stocks Under 10: 39.86% Yield
Best of Small Cap: 37.64% Return
14 Days
High Risk Stocks: 25.42% Average
Stocks Under 10: 44.35% Return
Top Energy Stocks: 28.6% Yield
1 Month
Best of Undervalued: 18.35% Avg
Consumer Stocks: 41.78% Return
Hedge Fund Stocks: 82.74% Yield
3 Months
Aggressive Stocks: 94.61% Average
Top Options Picks: 395.34% Yield
Top Fundamental: 174.01% Return
1 Year
Best of AI Stocks: 139.2% Average
Best of Options: 392.72% Yield
Top S&P 500 Picks: 185.61% Return
☆ Predicting Next Week’s Winning Stocks By Using Deep-Learning ☆

Snippets From Our Top Blog Posts For The Week:

Stay Ahead Of The Curve: AI Weekly

Tesla Stock Predictions: AI-Powered Predictive Algorithm Shows Precision Up To 100% Amid COVID-19

The I Know First Predictive Algorithm was recently featured on MarketWatch for its ability to predict Tesla stock with an accuracy of up to 100% during the period from June 2019 to September 2020. This study period highlights how the algorithmic forecasts have been able to consistently predict Tesla stock prices with a precision above 62%, even during the tumultuous coronavirus market period.

Most impressive was the algorithm’s performance during the three-month and one-year time frames which sported a 92% and 100% hit ratio, respectively. The short-term time frames had a lesser hit ratio ranging from 60-64%, with the 30-day time frame showing a hit ratio of 76%. Regardless, this level of accuracy is well above the conventional machine learning waterline of 50-60%, showing that the I Know First Predictive Algorithm provides its subscribers with meaningful relationships between fresh market data and its forecasts.

Read more.

NVDA Stock Prediction: Nvidia Deserves A Price target of $630

Our previous July 27 prediction that Nvidia (NVDA) will hit $460 came true after the company’s pursuit for ARM Holdings. Again trading below $530, Nvidia is still deserving of a 1-year price target of $630 as the acquisition of ARM Holdings is providing a massive boon to the stock’s value. This acquisition from SoftBank comes at a price of up to $40 billion, where Nvidia is set to pay $12 billion in cash and $21.5 billion in NVDA common shares.

In addition to the purchase, Nvidia has agreed to grant $1.5 billion equity to employees of ARM Holdings and a future bonus payout of $5 billion in cash or NVDA stock. This bonus payout would be based on future financial performance of ARM Holdings. In addition to all of this, Nvidia has given their word to retain ARM Holdings as a British company and avoid revising the open-licensing business model which is expected to appease government regulators.

Read more.

I Know First Evaluation Report For Undervalued Stocks

This I Know First Evaluation Report covers the algorithmic performance of the forecasts generated for Low P/E Stocks, a subpackage of the Fundamental Stocks package. Analysis covers the study period from May 17, 2020 to September 9, 2020 to showcase the top performances of the model in predicting undervalued stocks.

Both the Top 10 and Top 5 signal groups consistently outperformed the S&P 500 index. Every group gave a good performance, with the most impressive returns relative to the index coming from the 14-days and one-month time horizons. As for accuracy, most of the longer time-frames gave a hit ratio higher than 50%. Despite the shorter time-frames showing a lower precision, their average returns still outperformed the S&P 500 index showing that consistency for positive gains remained despite a relatively lower accuracy.

Read more.

Keep Calm & Trust Your Data: AI And Stock Market Irrationality

At the core of the Efficient Market Hypothesis (EMH) is the idea that the stock market and its investors behave rationally. Stock prices reflect all information available to investors and these investors are fully rational in their decision-making. On the other side of the debate, behavioral finance views investors as humans first and investors second. This school of thought sees that despite all the number-crunching that investors do, their decisions are still influenced by human psychology.

The EMH theory is one that is hotly contested these days. Its assumption that stock prices are essentially on a random walk and thus it is impossible to beat the market are now being put into question. Multiple studies now find cases where investors consistently underperform the market due to irrationalities in their trading behavior. If stock markets are in fact irrational to a certain extent, how can one then reliably predict the markets? It is to answer this exact question that the advent of AI and machine learning-based trading has revolutionized the markets. With events like bubbles being fueled by human emotion, models like the I Know First Predictive Algorithm can catch a trend before anyone else with the help of human-void and AI-based insights.

Read More.

The A.I. Gold-Mine: Predicting Stock Market Success

The ability to predict the stock market both consistently and reliably has been a gold mine for technologists and traders alike as far as anyone can remember. As developments in machine learning and artificial intelligence rapidly improve, so do the forecasts generated by these models which now can be seen outperforming even the top master traders. One such example is I Know First, a fintech company that brings science and math to the financial world by providing daily investment forecasts based on an advanced self-learning algorithm.

The I Know First Predictive Algorithm was developed by Dr. Lipa Roitman, CTO of I Know First who holds PhDs in organic and physical organic chemistry from the Weizmann Institute of Science. His search for order in highly complex and seemingly random chemical processes was achieved by applying a wide range of machine learning techniques, including artificial neural networks and genetic algorithms. With this leap into deep learning, Dr. Roitman applied his research to the financial markets, finding order in the chaos of today’s stock markets, and revolutionizing how machine learning can outperform the most senior of stock indices.

Read more.

Want to learn more?

Letter from the CEO

Dear Readers,

Tesla has been one of the most exciting stocks of this year. Furthermore, this year has brought a volatility unseen since the last market crisis, sending stocks flying up and down in all directions. For this reason, we have decided to analyze all the predictions that the I Know First Predictive Algorithm has generated during the last year. Featured on MarketWatch, an evaluation report for the algorithm’s Tesla predictions analyzed the model’s performance in the study period from June 2019 to September 2020. The report shows that the AI-driven algorithm consistently delivered Tesla forecasts with a precision over 62%. What is most impressive is that the algorithm was able to predict Tesla with accuracies of 92% and 100% for the three-month and one-year time frames, respectively!

In September, the S&P 500 has lost more than 7% of its value, with the Dow dropping a similar 5.5%. The Nasdaq Composite faired even worse, tumbling 9.5% one month to date, reentering correction territory. Despite these negative trends, the Aggressive Stocks package has managed to outperform in multiple time frames. In the three-day forecast, KODK, INO, and BTU all had returns of 86.31%, 50.18%, and 39.38%, respectively. The total average return of the forecast was 25.08%, outperforming the S&P 500 index which gave a -1.89% return during the same time frame! In the seven-day forecast, VXRT, PEIX, and BTU all had returns of 55.09%, 53.35%, and 39.86%, respectively. The total average return of the forecast was 20.40%, outperforming the S&P 500 index which gave a -0.64% during the same time frame! In the 14-day forecast, PEIX, WKHS, and BTU all had returns of 76.18%, 73.17%, and 54.75%, respectively. The total average return of the forecast was 25.42%, outperforming the S&P 500 index which gave a -3.92% return during the same time frame!

Not only can the predictive algorithm find opportunities in a bullish season, but in any scenario the market finds itself in. Don’t wait any longer and click here to access this forecasting power for yourself!

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 are the Top 10 stock predictions?
A. The Top 10 stock predictions are the stocks that are poised to grow the most (have the strongest positive signals).

Q. What is the S&P 500 stock prediction and why do you include it?
A. The S&P 500 is the major US index and is a general indicator for the direction of the US stock market. If the algorithm predicts that the S&P 500 will go up, then it is a good sign that the stock market will generally increase. It helps in decision making. It is generally preferable to go long the Top 10 stocks when the S&P 500 has a positive prediction, and to go short the 10 stocks on the bottom of the table when the S&P 500 has a negative prediction.

Q. How should I use the S&P 500 forecast?
A. The S&P 500 is a great representation of the general US stock market. If the algorithm predicts that the S&P 500 will go up, then it is a good sign that the stock market will generally increase. If the predictability for the S&P 500 is relatively weak, then it is important to be cautious, as the algorithm is unconfident about the direction of the stock market.

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.

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.

Get Access to the Latest Heatmap + Daily Market Forecasts!

Commodities, Gold & Currencies

Gold Based on Deep Learning:
Returns up to 12.81% in 3 Months

September 16 | Read More

Gold Price Based on Big Data:
Returns up to 13.33% in 3 Months

September 17 | Read More

Gold Based on Algo Trading:
Returns up to 50.87% in 1 Year

September 21 | Read More

Currency Forecast by AI:
65.38% Hit Ratio in 7 Days
September 21 |
Read More

Forex Market Forecast:
80.77% Hit Ratio in 3 Months
September 21 |
Read More

Exchange Rate Forecast:
61.54% Hit Ratio in 1 Year
September 21 |
Read More

Find The Latest Top Commodities and Currency Pairs With AI Insight

Weekly Apple Stock Update

This week’s Apple Stock News discusses Apple’s September hardware event, iOS 14 software update, termination of partnership with Barclays Plc, and feud with Spotify over the Apple One bundle.

According to Tech Crunch, Apple announced a variety of new devices and features at its September hardware event this week. One of these announcements comes as the Apple Watch Series 6, set to be priced at $399 and coming with a new Apple S6 silicon chip with an always-on energy-saving display. There would also be a lower-cost wearable, the Apple Watch SE, set to be priced at $279. Apple’s new iPad lineup comes with the fourth-generation iPad Air, with a 10.9 inch 2360X1640 resolution Retina display and a USB-C cable instead of the lightning port. Included in this iPad are also a Touch ID fingerprint sensor and a new 12-megapixel 4K-capable rear camera. As for software, Apple is launching a new fitness subscription at $9.99 a month or $79.99 yearly. Subscriptions like these will now all be rolled into one place under the new Apple One plan.

Apple’s new iOS 14 software update is now available, bringing improved home screen widgets, the App Library, and App Clips among other features. There is now also a compact design for incoming calls and Siri interactions as well as quick access to important messages and expanded privacy features. The Maps application has also undergone improvements with the app now offering cycling directions along bike lanes, bike paths, and bike-friendly roads. As for audio, AirPods and AirPods Pro can now apply directional audio filters and subtly adjust frequencies that each ear receives.

According to Bloomberg, Apple is ending its long-time credit-card partnership with Barclays Plc in order to focus attention of its own Apple Card financing plans. Prior to this termination, Barclays was the partner bank through which Apple offered a rewards credit card. Customers can no longer apply for the credit card in retail stores or via the company’s website starting September 15.

Business Insider reports that Apple’s announcement of Apple One, a new bundle subsection service which is set to include existing services like Apple Music and Apple TV Plus, is being criticized by music streaming giant Spotify. They claim that Apple is using its dominant position to disadvantage competitors by pushing customers to favor its own services. Apple has responded that customers can discover and use any alternatives on their platform, with Apple One being released for its great value and simple way to access Apple’s subscription services.

Read more.

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