Quantitative Trading Results: TSM's Weekly Returns Surge by +9.27% via Trader Robot
The Day Trader: Medium Volatility Stocks for Active Trading (TA&FA) bot, which demonstrated its prowess by generating a remarkable +9.27% gain while trading TSM (Taiwan Semiconductor Manufacturing Company) over the previous week. In this article, we delve into the recent earning results of TSM, examine the bot's analysis, and shed light on the implications for traders.
Earning Results Analysis:
TSM, a leading global semiconductor manufacturer, released its latest earnings report on April 20. The report revealed earnings per share (EPS) of $1.31, surpassing the estimated figure of $1.22. This positive surprise indicates the company's strong financial performance, which can influence investor sentiment and potentially impact the stock's price.
Market Capitalization and Shares Outstanding:
With 448.66K shares outstanding, TSM currently boasts a market capitalization of approximately $479.56 billion. This metric is a reflection of the total market value of a company's outstanding shares and serves as a key indicator of its size and market dominance.
AI Trading Bot Analysis:
The "Day Trader: Medium Volatility Stocks for Active Trading (TA&FA)" bot employs advanced algorithms and technical analysis to identify potential trading opportunities. In the case of TSM, the bot flagged an important technical signal when the stock broke above its upper Bollinger Band on May 25, 2023.
The upper Bollinger Band represents a threshold above which the stock is considered overbought. The bot interpreted this breach as a potential signal for an impending drop in TSM's price. Historically, the bot analyzed 48 similar instances where the stock broke above the upper band, finding that in 30 of those cases, the stock subsequently fell. Based on this analysis, the bot calculated the odds of success for a downward move in TSM's price at 62%.
Implications for Traders:
The combination of the AI trading bot's analysis and TSM's recent earnings results presents an interesting opportunity for traders to consider. While the positive earnings report suggests strong fundamentals, the bot's analysis indicates a potential bearish trend due to the breach of the upper Bollinger Band.
Traders may want to closely monitor TSM's price action, particularly if it begins to move back below the upper band and toward the middle band. This could serve as confirmation of the bot's signal and an opportunity to take action, such as selling the stock or exploring put options.
AI trading bots continue to revolutionize the world of active trading, providing traders with invaluable insights and analysis to navigate complex market dynamics. The "Day Trader: Medium Volatility Stocks for Active Trading (TA&FA)" bot demonstrated its efficacy by delivering an impressive +9.27% gain while trading TSM in the previous week. By analyzing TSM's recent earnings report, market capitalization, and technical indicators, traders can make informed decisions based on a holistic understanding of the stock's potential trajectory. As always, it is essential to consider both fundamental and technical factors when engaging in active trading to maximize the probability of success.
TSM sees MACD Histogram just turned negative
TSM saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on September 18, 2023. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 41 instances where the indicator turned negative. In of the 41 cases the stock moved lower in the days that followed. This puts the odds of a downward move at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on September 07, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on TSM as a result. In of 90 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where TSM declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for TSM entered a downward trend on September 26, 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.
Bullish Trend Analysis
The RSI Indicator entered the oversold zone -- be on the watch for TSM's price rising or consolidating in the future. That's also the time to consider buying the stock or exploring call options.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 5 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where TSM advanced for three days, in of 311 cases, the price rose further within the following month. The odds of a continued upward trend are .
TSM may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued 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 (4.511) is normal, around the industry mean (7.944). P/E Ratio (15.267) is within average values for comparable stocks, (53.779). Projected Growth (PEG Ratio) (3.136) is also within normal values, averaging (2.342). Dividend Yield (0.021) settles around the average of (0.022) among similar stocks. P/S Ratio (6.456) is also within normal values, averaging (72.586).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable 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 Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 63, placing this stock slightly better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. TSM’s price grows at a lower 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 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.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a manufacturer of integrated circuits, silicon wafers, diodes and related semiconductor components
Industry Semiconductors
TSM and
Correlation & Price change
A.I.dvisor indicates that over the last year, TSM has been closely correlated with ASX. These tickers have moved in lockstep 80% of the time. This A.I.-generated data suggests there is a high statistical probability that if TSM jumps, then ASX could also see price increases.
| Ticker / NAME | Correlation To TSM | 1D Price Change % | ||
|---|---|---|---|---|
| TSM | 100% | -2.26% | ||
| ASX - TSM | 80% Closely correlated | -3.45% | ||
| AMAT - TSM | 75% Closely correlated | -1.84% | ||
| UMC - TSM | 74% Closely correlated | -2.26% | ||
| ASML - TSM | 73% Closely correlated | -2.29% | ||
| NVDA - TSM | 71% Closely correlated | -0.74% | ||
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