AI Models Suggest These Market Plays as Major Indices Projected to Lose 📉

Why did the Dow plunge on Friday? After keeping investors on their toes, the Fed ultimately declined the extension of a pandemic-era exemption that lowered bank capital requirements. Ultimately, the rule allowed banks to relax the amount of capital they had to maintain in an effort to calm volatile markets. Financial stocks are falling, questioning the rotation trade that has been in play for the last several weeks.

Before we dive into this week's trades, we want to share a very exciting update on the AI Investor platform. We created the platform to be an easy to use tool that speeds up the research process and helps you discover actionable and valuable investment ideas. So how are we doing so far? Here are the results of the feedback from some early users (As of March 5, 2021). Over 70% of the users agree that the platform is easy to use. Over 57% of the users agreed that the platform has accelerated their investment research process. Most importantly, over 85% of the people traded on the ideas shared on the platform and nearly all of them find the recommendations useful.

We created the AI Investor platform for subscribers of this newsletter. Hundreds of subscribers from this newsletter have already claimed their early access to the Forbes AI Investor research tool. Tired of spending hours finding what stocks and ETFs to trade? Forbes AI investor is the easiest way to discover your next investment. As a subscriber to this newsletter, you get early access! Sign up here to try it for free for one month. Cancel anytime!

Our AI models have selected several stocks with Top Buy ratings for next week to make the most of these markets. The first is Avient Corp (AVNT), which received the following Q-Factor Scores: a C in Technicals, B in Growth, B in Low Volatility Momentum and A in Quality Value. Our Top Buys also include industrial supplies and equipment provider WW Grainger Inc (GWW), which received a B in Technicals, C in Growth, B in Low Volatility Momentum and B in Quality Value. Meanwhile, database management company Oracle Corp (ORCL) was rated a C in Technicals, C in Growth, A in Low Volatility Momentum and A in Quality Value. And Verizon Communications (VZ) scored a C in Technicals, C in Growth, B in Low Volatility Momentum and B in Quality Value.

Alternatively, our AI models ranked private vacation ownership company Bluegreen Vacations Hldg Crp (BVH) as a Top Short for both the next week and the next month. It makes sense, given the current COVID climate, with global travel restrictions still in place. The stock earned a D in Technicals, D in Growth, D in Low Volatility Momentum and F in Quality Value. Another Top Shorts for the month is Livent Corp (LTHM), which received a C in Technicals, F in Growth, F in Low Volatility Momentum and F in Quality Value.

For next month, our AI models have rated three Top Buys. This includes Best Buy Co Inc (BBY), which recently made the news for rolling out at-home COVID testing for all employees. The stock was assigned a B across the board. Costco Wholesale Corp (COST) is also among the Top Buys for next month, earning a C in Technicals, B in Growth, A in Low Volatility Momentum and B in Quality Value. And last but not least is Malibu Boats Inc (MBUU), which received a C in Technicals, B in Growth, B in Low Volatility Momentum and A in Quality Value.

As for ETFs next week, our AI models have rated two Top Buys, Invesco China Technology (CQQQ) and iShares MSCI China (MCHI). This comes after a heated first face-to-face meeting between US and Chinese officials at the U.S.-China meeting in Anchorage, Alaska, on Thursday. Top Shorts for next week include iShares iBoxx USD High Yield Corporate Bond (HYG), Vanguard Short-Term Corporate Bond (VSCH), and Vanguard Short-Term Bond (BSV).

For the 30 days ahead, our AI has rated Alpha Architect U.S Quantitative Momentum (QMOM) (for the second week in a row) and ARK Next Generation Internet (ARKW) as Top Buys. And Top Short ETFs include iShares Russell 1000 (IWB), iShares Dow Jones U.S (IYY), and Vanguard Large-Cap (VV).

Some of our favorite options trades this week: 

Short Call Spread in Pinterest (PINS) – Ref Price- 74. Top short in Q.ai weekly model. Yield enhancement opportunity.

Short Put Spread in Dick's Sporting Goods (DKS) – Ref Price- 76.5. Top Buy in Q.ai model. Yield enhancement opportunity.

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Performance Update

Our monthly top buys for stocks have outperformed the SPDR S&P 500 ETF by over 23% since December 2013, generating a total return of 159%. After beating the market in January, our top buys were up 0.81% in February vs 2.78% for the SPY ETF.† You can find this full list of monthly top buys for stocks and ETFs in a simple and easy to understand table on the AI Investor Investment Discovery platform. Sign up here to try it for free for one month.

The Latest

Finance company Morgan Stanley Capital International (MSCI) has seen a turbulent month with a mostly (though not entirely) downward trend. Although the stock is down 5.4 percent since the start of the year, it shows above-average promise without real cause for concern. That’s why our AI suggests that the stock is an attractive one this month.

Looking for additional stock trading ideas? We publish articles daily and have highlighted the following stocks with Top Buy and Top Short ratings.

We have some very exciting news to share. Q.ai Invest, has been named the best investment platform by Fintech breakthrough awards. In addition, the Q.ai Invest launched on product hunt yesterday, and was the #1 product of the day. We would highly encourage you to take a moment to visit and upvote. Thank you!

†As of 2/28/2021. The calculated returns above are based on paper trades and back tests during the relevant measuring period and therefore represent hypothetical performance. The average holding period for each security is 1 month with the return calculation assuming an equally-weighted theoretical portfolio. Returns reflect full reinvestment of dividends. The hypothetical returns do not include advisory fees or transaction costs as Qai does not maintain an investment advisory business and has no assets under management. However, an investor paying a professional advisor would have its return affected by any fees or commissions paid. Past performance is not an indication of future returns. Changes in economic conditions and market factors will affect the returns of investments in different ways. Any investment involves a risk of a loss. All information herein is from sources believed to be reliable but have not been independently verified. No representation or warranty can be given with respect to the accuracy or completeness of the information, and is subject to updating, revision, and amendment. Hypothetical returns are shown against the actual returns for the SPRD S&P 500 ETF Trust (SPY) during comparable periods. The strategy is based on buying an equal amount of all stocks ranked as Top Buys by the Q.ai Factor Models for US Large-Cap Stocks (and an identical back tested strategy employed in the earlier stages of the measuring period January 1, 2017 through February 28, 2021). The Q.ai Factor Models are calibrated to focus on capital appreciation. Q.ai is the trade name of both Quantalytics Research, LLC and Quantalytics Holdings, LLC.