Market Extremes and Artificial Intelligence in Trading

Sometimes the most valuable thing you can do in an analysis of a market is to look at extremes. These outliers are important in that they communicate unusual price behavior which is clearly out of the norm. One way to think about it is to compare an asset’s price to the temperature in your neighborhood. Here, in Florida, the highest temperature on record took place on June 29, 1931, at 109 degrees. The coolest temperature on record took place in Florida on February 13, 1899, at -2 degrees Fahrenheit. Those extremes provide a pretty good idea of what is considered cold and what is considered hot.

Likewise, when you analyze any asset, you should always know what the extremes are so you can avoid putting yourself in a precarious situation. When you study markets for any period of time, you will quickly come to appreciate that at market tops there is extreme euphoria and optimism. The inverse is true at market bottoms, which usually create massive pessimism and despair.

We live in truly unique times. Because of all the massive money creation over the past 18 months, we have seen and continue to see massive pricing distortions in the markets. It’s the main objective of every trader when they see these distortions is to analyze and determine whether the price of an asset is seriously trending or are we at an extreme, where a snap back to the average is about to occur.

Market Manipulation and Inflation

This past week, we saw the S&P 500 Index hit an all-time high on the exact same day that the Federal Reserve’s balance sheet hit its all-time high of over $8 trillion. Literally, THE EXACT SAME DAY. Coincidence? I think not.

The Federal Reserve and the U.S. Treasury have been massively manipulating the financial markets for the past 13 years. We’ve seen stimulus and quantitative easing programs that stretch the boundaries of the imagination, to say the least. This has led to a perfect storm of inflation, where asset prices are rising due to easy money policies rather than underlying fundamentals.

Inflation is now at an all-time high, and the precious metals have been benefiting from this monetary phenomenon. Our expectation is that the trend in Silver will continue to be UP as inflation heats up.

The Gold-Silver Ratio

But what about the Gold-Silver ratio? The ratio of 67.19 is back within a "fairly valued" range over the last 30 years. Experienced investors use this indicator to determine the right (and wrong) time to monitor their allocations of precious metals. When the ratio is low, they look to buy Gold over Silver. When the ratio is high, they look to buy Silver over Gold.

However, our suggestion is that when the ratio approaches normalcy, you should utilize artificial intelligence to do trend analysis of the undervalued asset, which in this instance is Silver.

As inflation heats up, we expect that the precious metals will continue to benefit from this monetary phenomenon. We advise Power Traders to monitor the A.I. forecasts daily to understand the risks, rewards, and reality of this market.

Artificial Intelligence in Trading

But what tools should you use to make informed trading decisions? Our suggestion is that if you really want to save yourself some time and trade with the probabilities overwhelmingly in your favor, seriously consider using artificial intelligence, neural networks, and machine learning in your decision-making process.

This is not a solicitation or an offer to buy/sell futures, options, stocks, or currencies. The ApexDator forecasts have proven to be up to 87.4% accurate in determining the trend three days in advance.

The key questions that a good trader needs to answer are:

• What is the trend?
• What is the risk?
• Where should I get in and out?

Artificial intelligence answers these questions very powerfully every day with updated forecasts.

By utilizing artificial intelligence, you will be able to minimize the risk and maximize the potential returns on your investments.

Our economy continues to face its addiction to monetary stimulus. As inflation heats up, we expect that real asset prices will continue to rise as cheap capital floods into the market.

But do you have the tools and ability to stay consistently up-to-date on the risk and reward opportunities in this environment? What is your plan for maintaining your purchasing power as this trend accelerates?

We invite you to visit with us at one of our Live Masterclass Webinars, where we show how artificial intelligence is the only means to stay consistently up-to-date on the risk and reward opportunities in this environment.

Make it count.

Disclaimer

There is substantial risk of loss associated with trading. Only risk capital should be used to trade. Trading stocks, futures, options, FX, Forex and ETFs is not suitable for everyone.

Trading stocks, futures, options, FX, forex and ETFs is a high-risk activity that involves potential losses exceeding your initial investment. You must have the financial ability to bear these risks and accept them in order to invest in these markets.

Don’t trade with money you can’t afford to lose. This article and website are neither a solicitation nor an offer to buy/sell futures, options, stocks, or currencies. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this article or website. The past performance of any trading system or methodology is not necessarily indicative of future results.

CFTC rule 4.41 – Hypothetical or simulated performance results have certain limitations. Unlike actual performance record, simulated results do not represent actual trading and since trades have not been executed, it may also result in under- or over-compensation for the impact of certain market factors, such as lack of liquidity.

Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight.