Week in Review: +5.17% Gain by AI Trader Robot for $GME
One of the most intriguing developments in recent times is the rise of AI-powered trading robots, designed to navigate complex market scenarios with remarkable precision. Among these innovative trading tools, "Trend Trader, Popular Stocks: Price Action Trading Strategy (TA&FA)" has emerged as a standout performer, demonstrating its prowess as a bot factory generating substantial gains. In a remarkable feat, this AI trading system achieved a notable +5.17% gain while trading GameStop Corp. (GME) over the course of the previous week.
Analyzing GME's Downward Trend
GameStop Corp. (GME), a well-known player in the retail gaming industry, has been undergoing a significant market shift. On July 18, 2023, a crucial technical indicator signaled a change in the stock's trajectory. The 10-day moving average for GME crossed below the 50-day moving average in a bearish manner. This event is often interpreted as a pivotal shift in market sentiment, suggesting a potential downward trend. Historical data further validates this signal's significance. In 14 out of 15 past instances when the 10-day moving average crossed below the 50-day moving average, GME's stock price continued to rise over the following month. However, the current scenario presents a contrast. The odds of a sustained downward trend are estimated to be around 90%, highlighting the seriousness of the recent indicator's bearish crossover.
Earnings Report Impact
Amidst these technical shifts, the latest earnings report for GME carries its own weight in influencing market sentiment. The earnings report released on June 7 revealed earnings per share (EPS) of -14 cents. Unfortunately, this result missed the market's estimate of -11 cents, signaling an underperformance. With 877.17K shares outstanding, GME's current market capitalization stands at approximately 5.60 billion USD. The earnings report plays a vital role in shaping investor perceptions, as it reflects the company's financial health and growth prospects.
AI Trading Robots: A New Era of Trading
The emergence of AI trading robots represents a revolutionary advancement in the realm of financial markets. These sophisticated algorithms are designed to analyze vast amounts of market data in real time, enabling them to identify trends, patterns, and opportunities that may elude human traders. The AI-powered system, "Trend Trader, Popular Stocks: Price Action Trading Strategy (TA&FA)," stands as a prime example of the capabilities these technologies bring to the table.
In the specific case of trading GME, the system's ability to generate a remarkable +5.17% gain during a week characterized by a downward trend is impressive. This outcome underscores the potential of AI-driven trading strategies to adapt and thrive even in challenging market environments.
Summary
The intersection of AI and trading has ushered in a new era of possibilities. The success of AI trading robots like "Trend Trader, Popular Stocks: Price Action Trading Strategy (TA&FA)" in generating gains amidst complex market conditions demonstrates their efficacy. As GameStop Corp. navigates a potential downward trend and grapples with earnings challenges, these AI-powered systems offer a glimpse into the future of trading – one where technology augments human decision-making and opens doors to novel trading strategies.
Momentum Indicator for GME turns negative, indicating new downward trend
GME saw its Momentum Indicator move below the 0 level on September 11, 2023. This is an indication that the stock could be shifting in to a new downward move. Traders may want to consider selling the stock or exploring put options. Tickeron's A.I.dvisor looked at 81 similar instances where the indicator turned negative. In of the 81 cases, the stock moved further down in the following days. The odds of a decline are at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The 50-day moving average for GME moved below the 200-day moving average on August 30, 2023. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where GME 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 GME entered a downward trend on September 05, 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 Oscillator points to a transition from a downward trend to an upward trend -- in cases where GME's RSI Indicator exited the oversold zone, of 43 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator is in the oversold zone. Keep an eye out for a move up in the foreseeable future.
The Moving Average Convergence Divergence (MACD) for GME just turned positive on August 30, 2023. Looking at past instances where GME's MACD turned positive, the stock continued to rise in of 43 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where GME advanced for three days, in of 264 cases, the price rose further within the following month. The odds of a continued upward trend are .
GME 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 PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding 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 Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
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. GME’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 77, placing this stock better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating slightly worse than average price growth. GME’s price grows at a lower rate over the last 12 months as compared to 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 (4.219) is normal, around the industry mean (12.286). P/E Ratio (0.000) is within average values for comparable stocks, (24.817). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (2.699). GME has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.036). P/S Ratio (0.918) is also within normal values, averaging (82.606).
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 retaier of video game products and PC entertainment software
Industry SpecialtyStores
GME and
Correlation & Price change
A.I.dvisor indicates that over the last year, GME has been loosely correlated with CHPT. These tickers have moved in lockstep 46% of the time. This A.I.-generated data suggests there is some statistical probability that if GME jumps, then CHPT could also see price increases.
| Ticker / NAME | Correlation To GME | 1D Price Change % | ||
|---|---|---|---|---|
| GME | 100% | N/A | ||
| CHPT - GME | 46% Loosely correlated | -3.54% | ||
| CPRT - GME | 45% Loosely correlated | -1.23% | ||
| CONN - GME | 39% Loosely correlated | -1.73% | ||
| HNST - GME | 39% Loosely correlated | -0.81% | ||
| FND - GME | 39% Loosely correlated | +0.96% | ||
More | ||||