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Navigate Choppy Trading Waters Ahead with EquBot AI Insights

Broad US markets have historically lagged in the month of September and EquBot’s platform signals are showing headwinds from a macro economic perspective. Electronic signals point to a modest +0.6% S&P 500 (SPY) rally partially offset by a -0.7% NASDAQ (QQQ) selloff through Mid-October. The artificial intelligence investment management platform is detecting elevated risk from global Covid cases, China Evergrande uncertainty, and large negative sentiment surrounding US debt ceiling discussions.

The theme of downside protection in the technology sector through mega cap stock exposure continues this week. Top 3 Tickers showing 1-month relative outperformance include: AAPL, MSFT, and AMZN (EquBot is long all 3). We are bullish on these strategic investments in the aforementioned technology giants even in light of the projected market volatility and expected shift for some investors from these dividend stocks into bonds as yields are expected to increase modestly this week. These sturdy technology companies are well positioned to endure challenges in this global market environment and can allow investors to participate in bounce back equity market moves.

– Projected +3% rally in EM stocks (EEM) and +2.6% rally in ETFs with smaller cap exposures like the Russell 2000 (IWM). Personalized portfolios using risk control features like Gold (GLD) and fixed income ETFs should consider TLT and EMB for the next month as longer duration and spread product will be less impacted by debt ceiling bumblings.

Small Cap positions with material business exposure to Asia reflecting higher risk signals over the 1-month horizon! Quantamental investing signals scraped around the globe show better risk adjusted opportunities in EM Equity ETFs (EEM) and High Yield ETFs (HYG).

Choppiest signals are coming from short duration fixed income products. Investors should consider the relative risks associated with potential US political volatility and potential government shutdown discussions.