In my last article, I discussed the immense potential of predictive analytics for improving trading outcomes.
Powerful algorithms can analyze vast datasets to uncover valuable insights human experts would easily miss.
Many top Wall Street hedge funds have leveraged predictive analytics to generate huge returns. Now my goal is to make this institutional-grade technology available to help everyday investors like you trade smarter.
As a reminder, my models examine millions of data points across historical prices, news, earnings, filings, and more. This massive analysis enables predicting short-term price movements with high accuracy.
Essentially, predictive algorithms do the heavy lifting so you don’t have to.
This week I ran my models, and they strongly recommended investments in stocks in the consumer discretionary (XLY) and technology (XLK) sectors. As my modeling system is closely aligned with the systems used by Wall Street funds, there’s a high probability these sectors (and the stocks below) are on their buy list, too.
Here are two stocks my algorithms flagged as buys right now:
Alphabet (GOOG) – XLK Sector Pick
Google parent Alphabet recovered strongly from its lows but has struggled recently with tech weakness. However, predictive data suggests upside:
- The stock is oversold from a technical perspective after breaching key support.
- Earnings and revenue grew over 6% last quarter despite challenges.
- Cloud business is still booming with 37% growth.
- Potential for continued growth in digital ads as recession fears fade.
My models predict a rally back toward the $110 level, representing a 16% upside from current prices. Any dips below $95 look like solid buying opportunities for GOOG.
Lowe’s (LOW) – XLY Sector Pick
As a leader in home improvement retail, Lowe’s is poised to benefit as consumers continue spending on home projects. Predictive signals include:
- Earnings topped estimates the past 4 quarters in a row.
- Stock is consolidating after a 25% surge off June lows.
- Management raised full-year sales guidance.
- High inventory heading into holiday season.
My models forecast Lowe’s rallying back toward its 52-week high around $260 over the next 6-9 months. Initiating a position around $185 and holding through Q4 earnings could return 30%.
These are just a few examples of high-conviction trades surfaced by predictive analytics. The power of leveraging massive data analysis is immense.
Just remember that these ideas aren’t official recommendations. I haven’t given you precise entry price or exit price targets, and we haven’t discussed risk management. All three of those things are vital parts of trading.
I’m simply sharing these ideas with you to show you the “proof of concept,” or for you to use this basic information as the starting point for doing your own research.
Stay tuned here each week for more predictive insights to give you an edge. I look forward to empowering you with institutional-grade analytics.
Leveraging data for you,
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Source: Jeff Clark Trader