The use of artificial intelligence (AI) in finance analytics has been gaining traction in recent years and for good reason. AI has the ability to analyze vast amounts of financial data, identify patterns and make predictions with a high degree of accuracy. One such application of AI in finance is earnings trading using technical analysis (TA).
In this article, we will explore how an AI-powered earnings trader using TA generated gains of 18.14% for TSP (Thrift Savings Plan) and how TSP's RSI oscillator ascended from oversold territory.
The AI-powered earnings trader uses TA to analyze the historical price and volume data of a stock or index and identify patterns that indicate potential future price movements. The trader then makes trades based on these predictions, with the goal of generating profits.
In the case of TSP, the AI-powered earnings trader analyzed the historical price and volume data of the index and identified a bullish pattern. The trader made a trade based on this prediction, and the index subsequently rose, resulting in a gain of 18.14%.
In addition to generating gains for TSP, the AI-powered earnings trader also identified a potential buying opportunity based on TSP's RSI oscillator. The RSI oscillator is a technical indicator that measures the strength of a stock or index's price action. When the RSI oscillator falls into oversold territory, it may indicate that the stock or index is undervalued and may be due for a rebound.
In the case of TSP, the RSI oscillator fell into oversold territory, indicating that the index was undervalued and may be due for a rebound. The AI-powered earnings trader identified this potential opportunity and made a trade based on this prediction, resulting in a profitable trade for TSP.
The use of AI-powered earnings traders using TA is just one example of the many ways in which AI is transforming the finance industry. By analyzing vast amounts of data and making predictions based on patterns and trends, AI-powered traders are able to generate profits for investors and provide valuable insights into the markets.
The 10-day moving average for TSP crossed bullishly above the 50-day moving average on May 24, 2023. This indicates that the trend has shifted higher and could be considered a buy signal. In of 5 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on May 17, 2023. You may want to consider a long position or call options on TSP as a result. In of 37 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for TSP just turned positive on May 17, 2023. Looking at past instances where TSP's MACD turned positive, the stock continued to rise in of 16 cases over the following month. The odds of a continued upward trend are .
TSP moved above its 50-day moving average on May 18, 2023 date and that indicates a change from a downward trend to an upward trend.
Following a +2 3-day Advance, the price is estimated to grow further. Considering data from situations where TSP advanced for three days, in of 96 cases, the price rose further within the following month. The odds of a continued upward trend are .
The RSI Indicator demonstrates that the ticker has stayed in the overbought zone for 5 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 6 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where TSP declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
TSP broke above its upper Bollinger Band on May 18, 2023. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for TSP entered a downward trend on May 16, 2023. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. TSP’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.404) is normal, around the industry mean (194.538). P/E Ratio (13.947) is within average values for comparable stocks, (41.487). TSP's Projected Growth (PEG Ratio) (0.000) is very low in comparison to the industry average of (2.975). TSP has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.014). TSP's P/S Ratio (52.632) is very high in comparison to the industry average of (3.575).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. TSP’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 71, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
|MFs / NAME||Price $||Chg $||Chg %|
|Undiscovered Managers Behavioral Val I|
|Lazard US Systematic Small Cap Eq Ins|
|PGIM Jennison Focused Value R6|
|Federated Hermes MDT Small Cap Growth A|
|Emerging Markets Growth Fund M|
A.I.dvisor indicates that over the last year, TSP has been loosely correlated with YELL. These tickers have moved in lockstep 34% of the time. This A.I.-generated data suggests there is some statistical probability that if TSP jumps, then YELL could also see price increases.
|YELL - TSP|
|PTSI - TSP|
|ODFL - TSP|
|HTLD - TSP|
|XPO - TSP|