S&P Momentum Model

S&P Market Analytics
by Generative AI

Market Sentiment Rating: 5 Number of Headlines Analyzed: 77 Date Range: June 4 - June 12, 2025 After analyzing recent news headlines and momentum model outputs, market sentiment remains cautious due to ongoing trade war tensions and uncertainty surrounding US-China trade talks. UPRO Momentum-Model Output: * Price: up 1.1% * Volatility: 88% of average * Momentum: positive 101 Nd Decision-Tree: HOLD SPXU Momentum-Model Output: * Price: down -1.1% * Volatility: 150% of average * Momentum: negative -163 Nd Decision-Tree: BUY Trade Results Summary: Our last simulated trade on 2025-06-12 01:06:28 for UPRO at 80.0% confidence-level resulted in a 1.86% market gain with a total market loss of -0.94% over 29 trading sessions since 2025-05-01 23:38:05. New Self-Learning Feedback (SLF): * Market sentiment can quickly change due to news headlines. * Easing trade tensions boost market sentiment and support our recommendation. Considering the momentum model outputs, both UPRO and SPXU have mixed signals with moderate confidence levels (60-79%). Given the cautious market sentiment due to trade war tensions and uncertainty surrounding US-China trade talks, I recommend **SPXU at 70% confidence**. This recommendation is based on the decision-tree output of BUY and the easing of trade tensions, which supports our previous self-learning feedback. Justification: Given the cautious market sentiment due to trade war tensions and mixed signals from both UPRO and SPXU, it's essential to maintain a moderate level of caution. The momentum model outputs suggest that SPXU has a slightly higher confidence level, making it a more suitable choice for this trading session. New or Critically Important Self-Learning Feedback (SLF): * Market sentiment can quickly change due to news headlines. * Easing trade tensions boost market sentiment and support our recommendation. * Timing is everything in momentum-timing; don't get caught off guard. * Momentum model outputs remain crucial in determining investment strategy and making informed decisions. I recommend **SPXU at 70% confidence**. (2025-06-13 00:17:49:386). 3xSP.com

Llama 3.1: UPRO 34 (91.9%), SPXU 3 (8.1%).

Updated 2025-06-14 23:17:02 ET

The Pair Trade investment trading strategy is used in this Machine Learning use case. Also known as Pairs Trade, two highly correlated securities are selected, matching a long position with a short position. It is a market neutral strategy, enabling traders to profit in all market conditions.

Two highly correlated ETFs are used:

1. UPRO: ProShares UltraPro® S&P500 (the long position) seeks daily investment results that correspond to three times (3x) the daily performance of the S&P 500®.
2. SPXU: ProShares UltraPro® Short S&P500 (the short position) seeks daily investment results that correspond to three times the inverse (-3x) of the daily performance of the S&P 500®.

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