What is a Hybrid Robo Advisor? It is a pocket-sized research department based on data analysis, which is expressed automatically and independently but also with the human labour of an analyst: let’s find out how.

Robo Advisor

The weekly appointment of the INCH Platform leads us to evaluate the consequences of these US presidential elections on the main stock markets of the world. To deepen the prospects of the two most famous Stock indices, the Nasdaq 100 and the S & P500, we compared 65 US equity indices in order to draw up a ranking from strongest to weakest based on the trend and momentum INCH-DSS (Decision Support System).

In third place, we find the Philadelphia semiconductor index (SOX)

 

The image highlights InchCapital Platform - PHLX Semiconductor Sector INDEX daily bar chart - NASDAQ: SOX)

InchCapital Platform – PHLX Semiconductor Sector INDEX daily bar chart – NASDAQ SOX

 

In eighth place, we find the benchmark Nasdaq 100 index (NDX)

 

The image highlights InchCapital Platform - Nasdaq 100 index daily bar chart

InchCapital Platform – Nasdaq 100 index daily bar chart

 

In 34th place (about in mid-table) there is the S & P500 index

 

The image highlights InchCapital Platform - S&P500 index (SPX) daily bar chart

InchCapital Platform – S&P 500 index (SPX) daily bar chart

 

Visual communication is immediate. The semiconductor index is stronger, in comparative terms, than the Nasdaq 100 index which in turn is stronger than the S&P 500 index. Therefore, it is legitimate to claim that one of the main drivers of the Nasdaq 100 index is represented by the performance of stocks linked to semiconductors, preferred by buyers compared to other components.

 

Automatic Portfolio Builder

Let’s now take a look at INCH Automatic Portfolio Builders, which automatically manage both the liquidity levels and the components of the Nasdaq 100 and S&P 500 portfolios.

 

The image highlights InchCapital Automatic Portfolio Builder - NAV Nasdaq100 Smart Beta Flex UCITS 20H

InchCapital Automatic Portfolio Builder – NAV Nasdaq 100 Smart Beta Flex UCITS 20H

 

The image highlights InchCapital Automatic Portfolio Builder - INCH historical track record (blue line) versus Nasdaq 100 index (black line) and the best Mutual Fund Large Cap Growth (green line)

InchCapital Automatic Portfolio Builder – INCH historical track record (blue line) versus Nasdaq 100 index (black line) and the best Mutual Fund Large Cap Growth (green line)

 

The image highlights InchCapital Automatic Portfolio Builder - INCH Nasdaq100 components last updated on Saturday 31nd October 2020 - automated weekly rebalancing

InchCapital Automatic Portfolio Builder – INCH Nasdaq100 components last updated on Saturday 31nd October 2020 – automated weekly rebalancing

 

The Inch Robo Advisor indicated:

  • the portfolio is flexible with double hedging and is fully invested from Monday 13 April 2020;
  • all draw down verified from 13 April to today, especially those of the last two months, have been automatically considered secondary and not main;
  • the components related to semiconductors is about only 30% of the total of 20 components;
  • indications were confirmed for next week 11/9 – 11/13/2020.

Let’s now take a look at S&P 500 automatic model portfolio

 

The image highlights InchCapital Automatic Portfolio Builder - NAV S&P500 Smart Beta Flex UCITS 20H

InchCapital Automatic Portfolio Builder – NAV S&P500 Smart Beta Flex UCITS 20H

 

The image highlights InchCapital Automatic Portfolio Builder - INCH historical track record (blue line) versus S&P500 index (black line) and the best Mutual Fund Large Cap Growth (green line)

InchCapital Automatic Portfolio Builder – INCH historical track record (blue line) versus S&P500 index (black line) and the best Mutual Fund Large Cap Growth (green line)

 

The image highlights InchCapital Automatic Portfolio Builder - INCH S&P500 components last updated on Saturday 31nd October 2020 - automated weekly rebalancing

InchCapital Automatic Portfolio Builder – INCH S&P500 components last updated on Saturday 31nd October 2020 – automated weekly rebalancing

 

Here too, the capital continues to be invested and the corrections that occurred were considered secondary.

These indications were confirmed for next week 11/9 – 11/13/2020.

Hybrid: the analyst’s contribution

We analyzed the trend of the S & P500 index on the basis of Elliott’s wave theory, considering the future EMINI S & P500 for the principle of greater liquidity and concentration of interest of different traders and investors.

 

The image highlights InchCapital Platform - S&P500 E-Mini Elliot Wave Perspective - candlestick daily chart

InchCapital Platform – S&P500 E-Mini Elliot Wave Perspective – candlestick daily chart

 

Without going into technicalities, it is noted that also from this point of view the trends highlighted by the two most famous US Stock indices, in the last two months, are correctives: the primary trends are still bullish with a point of origin, as regards the EMINI S & P500, at 3225.

What does it mean to identify this level for the US Stock prospects?

It means that the point of origin of the last bullish impulse, still in progress, is at 3225. Only below this level it will be possible to meet the primary correction such as those that were detected in the last two months of 2018 or on March 2020 or even medium / long-term trend reversal.

Where next for Nasdaq 100 and S&P 500? These are the conclusions of Inch Robo Advisor.

The view is still bullish both from the Robo and from Hybrid point of view with two specific protections with no doubt about interpretation. Regarding the Robo contribution, the two portfolios Nasdaq 100 and S & P500 are reviewed every weekend and will maintain the long positions until there will be no change in the current liquidity levels. As for the hybrid human contribution, the bullish view will change with a break below the support level of 3225.

Therefore, the algorithmic methodological approach is combined with the human contribution. Like this, a Hybrid Robo Advisor help reduce risk market.

www.inchcapital.com – Author: Emanuele Cecere