Forbes - AI Models Turn Defensive

Update: Only six days left to join Forbes’ AI investing slack channel for free!
After that it will be only available to our most loyal users and paid customers.  Please click here to join now. In the slack channel, we share daily AI driven investing ideas by Q.ai. For the 1,000+ members who joined, starting next week, we will share an extended list of ideas for ETFs, options strategies, top movers and more.

Major stock indexes usually serve as a litmus test for how markets are doing. Interestingly enough U.S. stocks held their own at the start of the week while Dow, Nasdaq, and S&P 500 but struggled to edge out of the red by the end of the week.

Our AI models appear to be in agreement with the rising investor concern with US markets. The iShares 1-3 year (SHY) and 7-10 year US Treasury (IEF) ETFs are among our top picks for the next week. 

Mounting U.S.-China tensions have risen past a simple squabble over tariffs, affecting both the U.S. and Chinese markets, so it comes as no surprise that the iShares MSCI China (MCHI) ETF is one of our Top Shorts over the next 30 days. SPDR Gold Trust (GLD), one of our Top Shorts for the following week, recently made headlines for hitting a 7-year high and is thought to be overbought – among many other stocks and ETFs in the US market.

Closing out July, investors highly anticipate quarterly earnings for Facebook, Procter & Gamble, Apple and Amazon next week. Facebook, Apple and Amazon make up a major chunk of the leading tech stocks in the U.S. stock market, commonly referred to as the FAANG Stocks. The earnings results of these FAANG stocks will help set the tone for trading in the month of August.  Are the dog days of summer back again? We will soon find out.

This week’s top options trades focus on:

Short Put Spread on Target Corporation (TGT) – leveraged a neutral-to-bullish contrarian US retail trade.  Potential great way to play the building pessimism around traditional brick and mortar retail. 

Put Spread Collar on Materials Select Sector SPDR (XLB) – leveraged a bearish hedge with attractive payout potential that is a hedge on weaker economic growth.

The Latest

Large cap growth stocks are known to have high returns and are very popular with investors, especially during the pandemic. Using our AI and deep learning, we’ve evaluated the top large cap growth stocks and have provided ratings for the current month.

If you think growth stocks are too expensive at this time, value stocks are the way to go. But, unless you know where to look, it can be challenging to pick out the right ones. That’s why we’ve paired our deep learning algorithms with AI to identify the top value stocks for July.