Opening Remarks

Hi everyone, I'm Mu-Yen! Welcome to "AI Stock Chat." Today is Wednesday, August 19, 2026. How did your trading go today? Our latest forecast generated today is here to help you prepare for tomorrow's Taiwan stock market on Thursday, August 20. Today, our AI system delivered a highly intriguing "neutral" signal. However, the devil is in the details: foreign institutional investors have quietly built up a historically terrifying short position in the futures market. Tomorrow's market is likely to see a thrilling tug-of-war between bulls and bears. Next, I will break down the latest forecast data for you in the most straightforward and honest way possible!

Today's Market Forecast

First, let's look directly at the AI model's forecast data for the TAIEX (Taiwan Capitalization Weighted Stock Index) for the next trading day, Thursday, August 20, 2026:

Although the forecast direction is shown as "Neutral," I must honestly tell you that the current market sentiment is actually "neutral to bearish." Even though foreign institutional investors bought a massive NT$45.4 billion in the spot market, they have accumulated a historically massive net short hedging position of up to 83,000 contracts (potentially reaching 85,000 contracts) in the futures market!

Additionally, tomorrow, August 20, the Taiwan stock market faces ex-dividend dates for several popular ETFs alongside heavyweight earnings calls, and the futures market is currently trading at a discount. Driven by rising oil prices due to Middle East tensions and US Treasury yields hovering high at 4.68%, tech stocks continue to face pressure. At tomorrow's market open, the spot market is highly likely to face heavy pressure, potentially opening with a downward gap of around 270 points. The most critical aspect to watch tomorrow is whether the futures-spot spread can narrow, and whether heavyweight stocks like TSMC and MediaTek can step up to halt the decline and stabilize.

Global Market Status

Next, let's look at the latest status of global markets. Please note that this only represents the "current market state"—the AI system does not generate directional forecasts for these overseas indices:

Looking at overseas markets, although the three major US indices closed slightly in the green, the Philadelphia Semiconductor Index—which is most closely correlated with Taiwan stocks—tumbled 2.07%. This directly dragged down the Taiwan Index Futures night session, which closed down 1.24% at 44,527 points. This confirms why we warned earlier that when the market opens tomorrow, Thursday, August 20, everyone needs to be particularly cautious about the risk of a downward gap.

Key Stock AI Forecasts

(No individual stock forecasts today)

Strategic Stock Selection Radar

Next is our "Strategic Stock Selection Radar." I would like to gently remind everyone again that the following stocks are "strategy screening results" filtered by the system based on specific quantitative indicators. They are absolutely not buy or sell forecasts for individual stocks, which is why they do not include forecast directions, target prices, or confidence levels. You can use them as inspiration for your own research and stock picking:

Let's take a quick look at the status of these stocks:

• Shipping Giants Wan Hai (2615) and Evergreen (2603): Both scored a perfect 100 in institutional flow today, with relatively strong momentum. However, note that the Williams %R for both Wan Hai and Evergreen has entered the "overbought zone" (at -8.51 and -4.55, respectively), and MACD is showing bearish divergence, suggesting the rally might be losing steam. Be careful not to chase highs blindly.
• Formosa Plastics (1301): Trading volume has quietly stabilized, showing a bullish "volume-price bottom divergence" signal. However, the Williams %R also indicates overbought conditions (-7.79), so caution is still advised when entering positions.
• ASUS (2357): Trading volume surged today to 3.19 times its average, with the CCI momentum indicator climbing to 261.3. However, note that the RSI is heavily overbought at 80, and the KD indicator has formed a death cross at a high level. With clear signals of weakening at these highs, the risk of chasing the rally is extremely high.
• Yuanta/P-Shares Taiwan Top 50 (0050): Although momentum is strengthening, a bearish engulfing pattern has appeared on the candlestick chart, and the Williams %R is also in the overbought zone. Short-term volatility is likely inevitable.

Review of Recent Forecast Accuracy

On our show, we value "honesty and transparency" above all else—we never cherry-pick our results. To be completely honest, our AI system's recent performance has been quite underwhelming. Whether for next-day or short-term forecasts, the directional accuracy for the broader market has hovered around 40%:

• Market · Next-Day: Directional accuracy 40.0% (correct direction 4/10 times); range fully hit 3/10 times; average error 1.04%
• Market · Short-Term: Directional accuracy 42.9% (correct direction 3/7 times); range fully hit 1/7 times; average error 2.26%

This indicates that the market has recently been heavily disrupted by foreign futures short positions, geopolitical tensions, and macroeconomic data. The shifts between bulls and bears are happening incredibly fast, making it highly challenging even for an AI to forecast. Therefore, when referencing these predictions, please keep this win rate in mind, strictly manage your capital, and absolutely avoid over-leveraging!

Disclaimer

This content is automatically generated by an AI model based on quantitative data and is for research reference only. It does not constitute investment advice. Investing involves risks; please make your own judgments and assume all responsibility.