AI Stock Investing Update #3 (Almost Done)

Danelfin AI down 13.5%, S&P 500 up 2%

You and me both, kid — Photo by Thomas Park on Unsplash

Off the top, no danger of AI catching up to the S&P 500 in an up market, as I had hoped at the end of my last update. Since then, the S&P is up 9% and AI is only up 7.5%. But wait, a glimmer of light!

On November 3rd, I got my sell signal, for SWAV. I saw that despite it being down from when I bought it, it had risen substantially in the past couple of days. Then I noticed that there was an earnings call scheduled for the next day, and I recalled that often stocks rise going into an earnings call, then fall after the earnings are released. Something about the triumph of hope over experience.

To my pleasant surprise, the AI was right. The day after the earnings call the stock plunged steeply, and I had already sold.

This is what a steep plunge looks like — screenshot

That marked twice in a row that the AI warned me before a steep plunge in the stock price. Both times the overall result was poor (I lost money), but would’ve been much worse off without the warning.

Note that I sold because of my own interpretation of a weak buy from the AI (two days in a row of 7 out of 10), not because the AI…