Quick Win by the Algorithm: FVX 5 Year Bond

Quick Win by the Algorithm

On October 30, 2016, the I Know First algorithm had predicted a bullish forecast for Treasury Yield 5 Years (FVX).  FVX had a signal of 74.34 and a predictability of 0.24. In accordance with the algorithm, the company reported long-position capital gains of 38.32% experiencing a quick win by the algorithm.

quick-win-by-the-algorirthm-format

quick win by the algorithm

Bond yields have been steadily increasing for the last five months. The reason started with the fact that the United States economy began to improve in Q3 with a 2.9% growth. Although 2.9% doesn’t sound like a lot, it is the fastest the economy has improved since 2014. Another reason for the increase in bond yields is that inflation is rising in the last year with the consumer price index up 1.6%.

With the unexpected win from Donald Trump in the United States election, tax cuts seem inevitable. Because of this reason investors began to quickly sells bonds. They were trying to stimulate the economy by doing this but only made it worse.

This bullish forecast on FVX was sent to current I Know First subscribers on October 30, 2016. 

Before making any trading decisions, consult the latest forecast as the algorithm constantly updates predictions daily. While the algorithm can be used for intra-day trading the predictability tends to become stronger with forecasts over longer time-horizons such as the 1-month, 3-month and 1-year forecasts.

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