Most investors and traders research target-stocks to find essential performance facts and significant background information; they also try to gain a firm grasp of stock behavior before making any buy or sell decisions. Financial services firms and brokerage houses happily provide their clients with costly research materials and analysis results. Some stock analysts periodically issue newsletter comments on popular stocks. Investors and traders often find those comments helpful because they neatly summarize basic facts and technical characteristics of stocks, providing company and industry profiles along with accounts of past performance; they may also estimate risk and corrections between stock prices and market sector performance. Using these data, investors can then assemble their own views of stock and company performance potential.

Figure 30. An example of our Artificial Intelligence Live Stock Commentary

However, professional investors and independent traders alike still face two major inconveniences: first, summaries and newsletter comments are unavailable for most stocks, and second, even when they are available, these comments are often badly out of date soon after they are released.

The amazing news on this score is that Tradetrek’s Live Stock Comment engine overcomes such drawbacks by providing traders with consistent and reliable real -time stock summaries and comments for all stocks! Just as the modern public has witnessed IBM's Big Blue outmaster the masters of chess, the trading world is now beginning to comprehend the potential of Artificial Intelligence in trading applications. To provide the most consistent and incisive stock assessments for all stocks in real time, Tradetrek.com has recently pioneered its breakthrough invention, the Artificial Intelligence Live Stock Commentary Engine (AILSCE). Figure 30 shows an example of live stock commentary provided by AILSCE on the Internet. The following is a description of the system:

1. Tradetrek has assembled a powerful stock database for historical and real-time data.

Tradetrek.com has built a powerful stock database to support AILSCE. By intercepting real-time data via S&P's Comstock satellite transmissions, Tradetrek stores in its database the daily and intra-day prices and volumes of stocks traded on the NYSE, AMEX and NASDAQ exchanges, as well as other fundamental data on all stocks. We have also stored the major indexes and market-sector indexes in our database.

2. AILSCE retrieves basic quotes and fundamental data for the first part of Tradetrek stock commentary.
3. AILSCE analyzes stock price and volume history to generate the liquidity and volatility/risk comments.
4. AILSCE computes stocks' past performance, along with short-term and long-term trends.
5. AILSCE evaluates stocks' past return/risk ratios in comparison with larger market trends and with the target stock's own market sector.
6. AILSCE analyzes the relationship of stocks with the whole-market and market- sector indexes; it then computes the betas and correlation coefficients.
7. AILSCE computes all of the stock's important technical indicators to see if the stock is overbought or oversold.
8. AILSCE runs the Intelligent Stock Chart Pattern Search program to see if the stock matches any of the typical technical patterns.
9. AILSCE runs the Artificial Neural Network Stock Prediction Engine to predict the next five-day price movements. It also assesses stock predictability by checking the ratio of the directionality of the predicted prices against the width of the prediction error bands.
10. Finally, AILSCE combines all the above analyses to issue Tradetrek users a complete commentary in plain English (or other human languages).