๐Ÿ“ˆ Alpha Picks & Market Update

Welcome Investors!

Hereโ€™s your Alpha portfolio update for the week:

  • Returns so far this year -1.70%

  • Our leading stock is Safe Bulkers Inc currently at +5.85% while our position in Century Communities Inc is lagging at -6.4%

  • Total positions: 18
    See the investment portfolio for the rest of our positions.

Market Snapshot

  • US stocks mostly fell, as the Nasdaq fell for a consecutive fifth session.

    • The Nasdaq is down -3.53%, while the S&P 500 closed at -1.79%.

  • European stocks rose even as Germanyโ€™s inflation accelerated to 3.8%, its fastest rate since December; French consumer prices rose in line with expectations.

  • Oil is down 3% at $71.6/barrel due to price cuts by Saudi Arabia, offsetting supply concerns generated by escalating geopolitical tension in the Middle East.

  • Bitcoin closed the week at $43,952, up +6.2% year-to-date as the January 10th, 2024, deadline draws near for the SEC to decide whether to allow Bitcoin ETFs.

Alpha Picks of the Week

Subscribe to Insider Memo Premium to see our Top 10 Stock Picks for the week

Featured Analysis

Hedge Fund trading activity

Cabot Corp (CBT)

CBT is a global speciality chemicals and performance materials company. Its products include reinforcing and speciality carbons, speciality compounds, conductive additives, carbon nanotubes, fumed metal oxides, inkjet colourants and aerogel.

  • Net Income increased 112.14% since last year and held flat since last quarter.

  • CBT is trading in the middle of its 52-week range and above its 200-day simple moving average.

  • EPS increased 113.64% since last year and increased 185.98% since last quarter.

  • Hedge Funds decreased holdings since last quarter. However, Ray Dalio has recently added CBT to his portfolio, while Joel Greenblatt increased the holding by 603%.

Bitcoin Cycle Analysis

The chart you are seeing is used to gauge the market cycles of Bitcoin. It features three key elements:

  1. BTC Price (Black Line): This is the actual historical price of Bitcoin. It shows the volatility and the price evolution over the years.

  2. 2-Year Moving Average (Green Line): This line represents the average price of Bitcoin over the past two years at any given point. It helps smooth out the price data over a specified period and is a lagging indicator that follows the trend.

  3. 2-Year Moving Average x 5 (Red Line): This is the 2-year moving average price multiplied by five. This line is often considered a hypothetical upper boundary of the price, based on historical data.

When the price is above the 2-year MA, it's considered to be in a potential bullish trend, and when it's below, it may be in a bearish trend. The upper boundary (2-Year MA x 5) is used to indicate potential overbought conditions.

Action Plan for Investors:

  • The market is in a bullish phase without being overextended. This could be an opportunity to hold or accumulate positions with the expectation of continued appreciation.

  • Set stop-loss orders below the 2-year MA to protect capital.

  • Diversify investments across Top-20 crypto-assets to manage risk effectively.

  • A conservative allocation could range from 1-2% to a more aggressive stance of 5-10%, depending on your conviction and risk appetite.

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