AI SIMS Forecast


Bullish Case: The SIMS sector shows increasing interest in AI and intelligent structures, suggesting potential demand spikes. Historical returns indicate probabilities for positive long-term returns can exceed 50% for 1-2 year holds, particularly if infrastructure spending rises. Good market conditions can further boost targets.


Bearish Case: High implied volatility suggests market fears of declining prices, compounded by bearish sentiment reflected in historical performance. Recent price trends and economic pressures indicate the likelihood of continued downside risk remains elevated, underlining potential price drops below key support levels.


Potential Outcomes:

1) Price recovery to near $35 (30%); driven by positive infrastructure news.

2) Continued decline to $28 (50%); bearish sentiment persists with heightened volatility.

3) Stabilization around $32.89 (20%); market consolidates as uncertainty lingers.


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September 12, 2024


SPDR S&P Kensho Intelligent Structures Forecast

SIMS      SPDR S&P Kensho Intelligent Structures











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Assets that tend to move strongly with SIMS



URTY Forecast + Options Trading Strategies   URTY  ProShares UltraPro Russell2000 (0.9)


UWM Forecast + Options Trading Strategies   UWM  ProShares Ultra Russell2000 (0.88)


VTWO Forecast + Options Trading Strategies   VTWO  Vanguard Russell 2000 Index (0.83)


ARKQ Forecast + Options Trading Strategies   ARKQ  ARK Autonomous Technology & Robotics E (0.82)


NXPI Forecast + Options Trading Strategies   NXPI  NXP Semiconductors (0.81)



Uncorrelated Assets

Assets with little price relationship to SIMS



RYLD Forecast + Options Trading Strategies   RYLD  Global X Russell 2000 Covered Call (-0.0)


RMBS Forecast + Options Trading Strategies   RMBS  Rambus (0.0)


UPWK Forecast + Options Trading Strategies   UPWK  Upwork (-0.0)


XRX Forecast + Options Trading Strategies   XRX  Xerox (-0.01)


SNBR Forecast + Options Trading Strategies   SNBR  Sleep Number (-0.01)



Anticorrelated Assets

Assets that tend to move strongly against SIMS



SDOW Forecast + Options Trading Strategies   SDOW  ProShares UltraPro Short Dow30 (-0.7)


VIXY Forecast + Options Trading Strategies   VIXY  ProShares VIX Short-Term Futures (-0.72)


SRTY Forecast + Options Trading Strategies   SRTY  ProShares UltraPro Short Russell2000 (-0.77)


HIBS Forecast + Options Trading Strategies   HIBS  Direxion Daily S&P 500 High Beta Bear 3X Shares (-0.78)


RWM Forecast + Options Trading Strategies   RWM  ProShares Trust - ProShares Short Russell2000 (-0.82)





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