Portfolio & Market Update for 3/6/2023 - Day 4
Comprehensive analysis by our “Ai Engine” for every single stock based on which, we provide accurate predictions, market insights, previous prediction's performance evaluation, key levels, & more...
Today is the 4th day after I announced the launch of our AI-Based Algorithmic Stock Market Ranking and Prediction tool, that post is titled: Introducing a New AI-Based Algorithmic Stock Market Ranking and Prediction Model: The Ultimate Tool for Smart Investing!
We’re still trying to get more subscribers to this Substack so if you haven’t joined, please consider subscribing for FREE or PAID if you’d like to show your support for ongoing work. If you think someone else would enjoy this Substack, consider sharing!
Market Update:
Markets saw a green start to the day, kept rising til’ noon but later settled almost neutral. This is probably due to the uncertainty Fed Chair Jerome Powell brings to the markets. He is scheduled to testify in front on both the Senate and the House Tuesday and Wednesday respectively. If tomorrow is uneventful after he testifies we can continue with some positive momentum. With that said, S&P500 ETF “$SPY” is still trading roughly 3% below its recent highs that came in on 2/2/2023. We’re now trading right around the 20-day moving average.
Below is the chart for today and based on the overall performance, only the large caps like Apple and Google held up the markets today. Small caps were down a decent amount with the Russell 2000 falling almost 1.5%.
Our Outlook:
We are still very much BULLISH on this market. Let’s hope this momentum continues this week but with the Russell 2000 falling today, we can go either way.
While we are not always overly concerned about the markets, it’s important to keep a pulse on things. A drastically swinging market can certainly impacts everyone including our portfolio, we strive to trade in a way that takes our portfolio away from correlation with the overall market. Until we succeed in doing this, our portfolio will usually performs similarly to the market.
Now, because our goal is to outperform the market we need a few days of momentum that shifts the correlation away from the market. In a falling market, we are happy if we only lose as much as the market or slightly more, but a few days of an uptrend can give us a strong push up far exceeding the performance of the market. We patiently wait for these kinds of days and look to sell our portfolio when we get them back to back.
With all of that said, even though things can go either way in the market we hold our portfolio and wait for some momentum to the upside.
Updated Portfolio Performance Evaluation (Day 4 of Challenge):
FOLLOW OUR NEWER POST FOR THE LATEST UPDATES!!!
Below you’ll find our portfolio “The Ai Challenge Portfolio”. This was generated by our Ai Algo Rank and Prediction tool on 2/28/23. This portfolio was down a total of -0.32% as of Friday and today it went down a little bit more due to the small caps dropping so we ended the day down a total of -1.33% from the start of this challenge. The Russell 2000 index dropped 1.5% so our down performance was a bit better than that but this is nothing to brag about. We are still under performing the S&P 500, which is now up 2.07% so far since 2/28, but it’s only been 4 days. Our aim is to move away from strong correlation with the overall market so this usually takes several days to happen.
A portfolio like ours requires time for some of the “undervalued” and “oversold” stocks to move up and start trading at fair levels. While some of our positions from this portfolio will certainly fall further, we expect our high level of diversification in these types of stocks to put us ahead eventually. Generally, we’ll hold a portfolio like this for 2-3 months without selling any position after which we’ll start selling to allow enough time and diversification to work its magic.
I’ll continue to provide updates on this portfolio every day. It currently consists of 358 stocks that were listed as “STRONG BUY” by our “Ai Engine” on 2/28/2023. You can find the complete list of stocks in this portfolio by clicking the link below:
FOLLOW OUR NEWER POST FOR THE LATEST UPDATES!!!
The last time I created a portfolio like this was back on 11/04/2022, and by 2/2/2023 (roughly 3 months) that portfolio gained 35%+(you can find a link to that below). We’re trying that again with the portfolio mentioned above. We have done this many times but are now officially tracking everything, which is exactly why we created this Substack.
Our Risk Management:
A few things to keep in mind is that we never trade earnings. This means that we avoid entering into new trades with a stock that is scheduled to release its earnings report within a few days. Additionally, if an earnings report is approaching we’ll close the existing positions beforehand. Lastly, We ALWAYS advocate for a highly diversified portfolio. We recommend having at least 100 stocks at any given time to get proper diversification. You can opt for a lot less diversification if you are trading large cap stocks but with small and midcap stocks, 100 is minimum.
Ai Algo Rank and Prediction Model (Refreshed: 3/6/2023):
Below you’ll find our latest predictions. If think is the first time you are coming to our Substack, you want to look at the following link to our latest predictions.
Historical Performance:
Historic Performance Evaluation from 11/4/2022 to 2/2/2023:
Historic Performance Evaluation from 11/30/2022 to 2/2/2023:
All the models above are currently published on Google Sheets.
Posting Schedule:
Every trading day, between the closing bell of the market and midnight, We’ll post a new refreshed AI-based Algorithmic Stock Market Ranking and Predication Model & Previous Ranking Performance Evaluation exclusively for the Paid Subscribers Only.
Every Tuesday, we’ll provide the same refreshed model for FREE to all our subscribers, both paid and FREE. If you're a FREE Subscriber, we encourage you to join our 7-day trial to access this valuable information. You'll be glad you did! Join us on this journey towards smarter, more informed investing. 💰🚀 #AIinvesting #stockmarket #investmentpredictions #smartinvesting