FIIJ Core Forecast

2026-02-06 · v1.0
MEDIUM CONFIDENCE

Situation

Interest Rates
suggests a moderately restrictive monetary policy with potential for further tightening.
Financial
indicates mixed risk appetite with tech sector showing potential mean reversion.
Commodity
suggests increasing demand for industrial and energy commodities.
Currency
indicates relatively stable currency valuations with minor fluctuations.
Crypto
indicates extreme bearish conditions for Bitcoin, suggesting a potential mean reversion opportunity.
Direction ratio:67% bullish → suggests a moderate bullish bias in the market.
Breadth momentum:-1 → indicates contracting market breadth, suggesting weakening trend.
Sigma intensity:1.58 → reflects a moderate signal environment, not yet at high conviction levels.
Dispersion index:2.03 → indicates high dispersion among assets, requiring careful sizing.
Signal level distribution:8% critical, 42% alert, 50% watch → indicates a mix of extreme and moderate signals.
Yield curve:Normal (0.67%) → suggests stable credit conditions and moderate growth expectations.

Signal

AssetPriceZ-ScoreWindowLevelTrade
BTC-USD $62702.10 -4.47σ 60d critical LONG
MSFT $393.67 -3.42σ 60d critical LONG
QQQ $597.03 -3.15σ 30d critical LONG
NVDA $171.88 -3.00σ 30d critical LONG
SPY $677.62 -2.49σ 30d alert SHORT
CNY=X $6.94 -2.38σ 252d alert SHORT
AMD $192.50 -1.82σ 60d watch SHORT
ALB $156.48 +1.61σ 252d watch LONG
HG=F $5.80 +1.59σ 252d watch LONG
TSM $330.73 +1.54σ 252d watch LONG
GOOGL $331.25 +1.51σ 252d watch LONG

Opportunity

PRIMARY
BTC-USD: Long position with 76% probability [n=271] of mean reversion.
76%
SECONDARY
Mean Reversion in Overbought Tech: The CRITICAL DOWN signals in NVDA, MSFT, and QQQ suggest a high probability of mean reversion within the next 30 days, offering potential upside. Mean reversion occurs 76% of the time [n=271] within 6 days.
65%
SECONDARY
Commodity Price Strength: The recent strength in commodities like lithium, copper, and uranium could drive inflation expectations higher, potentially impacting interest rate policy. Long signals have a 51% hit rate [n=317] on 2-day holds.
43%
SECONDARY
Weakening Market Breadth: The contracting breadth momentum (-1) suggests that fewer assets are participating in the market's gains, potentially signaling a correction. WATCH level signals show 54% accuracy [n=160].
46%

Domain Weights

Economist: 7% | Data Scientist: 40% | Critical Thinker: 33% | Forecaster: 5% | Psychologist: 14%