AI FEP Forecast


Bullish Case: FEP shows positive historical returns, particularly beyond one year, supported by bullish market sentiment and upcoming European political stability, which could drive prices up significantly.


Bearish Case: High implied volatility indicates potential market distress, with geopolitical tensions and macroeconomic factors possibly leading to price corrections and investor caution in the near term.


Potential Outcomes:

1. 40% chance of +10% returns due to improving market conditions.

2. 30% chance of -10% returns driven by volatility.

3. 30% chance of stagnation as markets stabilize.


Trading Oracle: Execute a bullish debit spread by buying the 39.00 call and selling the 40.00 call for April 2025 expiry. This strategy capitalizes on favorable market conditions with low downside risk while maintaining high reward potential.


August 22, 2024


First Trust Exchange-Traded Fund III - First Trust Europe AlphaDEX Forecast

FEP      First Trust Exchange-Traded Fund III - First Trust Europe AlphaDEX











Correlated Assets

Assets that tend to move strongly with FEP



EFA Forecast + Options Trading Strategies   EFA  BTC iShares MSCI EAFE (0.98)


XYL Forecast + Options Trading Strategies   XYL  Xylem (0.96)


DB Forecast + Options Trading Strategies   DB  Deutsche (0.95)


QCOM Forecast + Options Trading Strategies   QCOM  Qualcomm (0.95)


BAC Forecast + Options Trading Strategies   BAC  Bank Of America (0.95)



Uncorrelated Assets

Assets with little price relationship to FEP



EH Forecast + Options Trading Strategies   EH  EHang Holdings Ltd - (-0.0)


CWEB Forecast + Options Trading Strategies   CWEB  Direxion Daily CSI China Internet Index Bu (-0.0)


FIZZ Forecast + Options Trading Strategies   FIZZ  National Beverage (0.01)


NOC Forecast + Options Trading Strategies   NOC  Northrop Grumman (-0.01)


KOLD Forecast + Options Trading Strategies   KOLD  ProShares UltraShort Bloomberg Natural Gas (0.01)



Anticorrelated Assets

Assets that tend to move strongly against FEP



SRTY Forecast + Options Trading Strategies   SRTY  ProShares UltraPro Short Russell2000 (-0.89)


FWRD Forecast + Options Trading Strategies   FWRD  Forward Air (-0.89)


SQQQ Forecast + Options Trading Strategies   SQQQ  ProShares UltraPro Short QQQ (-0.9)


SPXS Forecast + Options Trading Strategies   SPXS  Direxion Daily S&P 500 Bear 3X Shares (-0.92)


VIXY Forecast + Options Trading Strategies   VIXY  ProShares VIX Short-Term Futures (-0.93)





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