eyeQ: why the Trump trade is going to be a big deal
Experts at eyeQ have used AI and their own smart machine to analyse macro conditions and generate actionable trading signals. Here’s what to watch in view of another Trump presidency.
22nd July 2024 10:56
by Huw Roberts from eyeQ
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"Our signals are crafted through macro-valuation, trend analysis, and meticulous back-testing. This combination ensures a comprehensive evaluation of an asset's value, market conditions, and historical performance." eyeQ
- Discover: eyeQ analysis explained | eyeQ: our smart machine in action | Glossary
ISF
(iShares Core FTSE 100 ETF GBP Dist (LSE:ISF))
Trading signal: long-term strategic model
Macro Relevance: 81%
Model Value: 815.11p
Fair Value Gap: -2.26% discount to model value
Gold
Trading signal: long-term strategic model
Macro Relevance: 68%
Model Value: 2,477.35
Fair Value Gap: -2.53% discount to model value
Bitcoin
Trading signal: long-term strategic model
Macro Relevance: 43%
Model Value: 73,486
Fair Value Gap: -9.44% discount to model value
Data correct as at 22 July 2024. Please click glossary for explanation of terms.
Here are some definitions of useful terms used in this video:
Model value
Where our smart machine calculates that any stock market index, single stock or exchange-traded fund (ETF) should be priced (the fair value) given the overall macroeconomic environment.
Model relevance
How confident we are in the model value. The higher the number the better! Above 65% means the macro environment is critical, so any valuation signals carry strong weight. Below 65%, we deem that something other than macro is driving the price.
Fair Value Gap (FVG)
The difference between our model value (fair value) and where the price currently is. A positive Fair Value Gap means the security is above the model value, which we refer to as “rich”. A negative FVG means that it's cheap. The bigger the FVG, the bigger the dislocation and therefore a better entry level for trades.
Long Term model
This model looks at share prices over the last 12 months, captures the company’s relationship with growth, inflation, currency shifts, central bank policy etc and calculates our key results - model value, model relevance, Fair Value Gap.
The transcript for this video is available in the description on YouTube here.
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