This Algo Is Bullish On Banks And Tech

With the benefit of a database that includes 15 years of stock market data as well as daily chart updates, the machine-learning algorithm behind I Know First had some bullish calls for the financial and tech sectors on Wednesday's episode of Benzinga's PreMarket Prep morning Show.

Yaron Golgher, the CEO of I Know First, which is up for a Benzinga Global Fintech Award highlighted some of the logic employed by the platform and provided several stocks and sectors the platform's artificial intelligence has on its radar.

More Upside For Financials

I Know First's algorithm is bullish on the financial sector, especially after Wednesday's rate hike. Golger noted JPMorgan Chase & Co. JPM has increased more than 35 percent since November and Bank of America Corp BAC is up more than 50 percent in that same span. According to I Know First's forecast, those gains are likely to continue for the big lenders.

He also said the algorithm has a bullish focus on Goldman Sachs Group Inc GS.

Tech For The Near Term

The tech sector was another highlight from I Know First's algorithm, although Golgher included the caveat that the bullish forecast was not quite as long as those for the bank stocks.

Nevertheless, Golgher did point to Apple Inc AAPL, Amazon.com, Inc. AMZN and Salesforce.com inc CRM as potential long calls from I Know First.

A Learning Machine

I Know First uses advanced computer learning and artificial neural networks to recognize quantitative market patterns from a backlog of market data while also constantly assessing new information from daily chart updates.

This process of recognition and reassessment, Golgher said, allows the algorithm to predict and highlight the likelihood and range of price movement for more than 3,000 assets including stocks, indices, ETFs, and currencies.

To learn more about I Know First as well as all of the other nominees in Benzinga's Global Fintech Awards, click here.

To hear the full interview with Yaron Golgher, tune in at the 57:45 mark in the track below.

PreMarket Prep is a daily trading ideas show that focuses on technical analysis and actionable short term trades. You can listen to the show live every morning from 8-9 ET here, or catch the podcast here.