Week in Review: Jan 23 - Jan 31, 2026

Performance Snapshot

This week AlphaWizzard returned -2.6%, underperforming the S&P 500 (+0.4%) and Nasdaq (-0.1%) as precious metals holdings faced significant headwinds. Despite this weekly setback, we continue to lead year-to-date with +7.5% compared to SPY's +1.5% and QQQ's +1.2%, while maintaining superior risk management with our maximum drawdown of -6.2% sitting between the benchmarks.

The F1 Dashboard

AlphaWizzard maintained its ACCELERATING mode this week with equity exposure holding steady at 83.5%. Like an F1 driver maintaining full throttle through a challenging corner, our systematic approach keeps us positioned for growth opportunities despite this week's volatility. The elevated exposure reflects our models' continued confidence in market conditions, positioning us to capitalize on the next acceleration phase while maintaining disciplined risk management.

Market Radar

Markets showed mixed signals this week as investors digested a combination of earnings results, economic data, and continued speculation around Federal Reserve policy. The S&P 500 managed modest gains of +0.4% while the Nasdaq remained essentially flat at -0.1%, reflecting the ongoing rotation between growth and value sectors. Precious metals faced significant pressure, with gold and silver mining stocks experiencing sharp declines amid rising real yields and dollar strength.

Technology emerged as the week's standout performer, with optical networking and semiconductor equipment companies leading the charge. Meanwhile, basic materials, particularly precious metals miners, faced intense selling pressure as investors rotated out of defensive positions. The divergence between sectors highlighted the market's selective nature, rewarding companies with strong fundamental drivers while punishing those facing headwinds from macro conditions.

Looking ahead, market sentiment appears cautiously optimistic despite this week's mixed performance. The upcoming employment data and consumer sentiment readings will be critical in shaping expectations for the Federal Reserve's next moves and overall economic trajectory.

Under the Hood

Top Contributors

Laggards

Sector Performance

Here's how the major sectors performed this week and how our stock picks in each sector compared to the sector ETFs:

*Our Return is the weighted average of portfolio holdings in each sector. Contribution shows impact on total portfolio return.

Technology was our standout sector this week, significantly outperforming the XLK ETF with our holdings gaining +5.9% versus the sector's -0.8% decline, contributing +1.8% to total returns. However, Basic Materials proved challenging as our precious metals-heavy exposure delivered -11.6% versus XLB's -1.4% decline, creating the week's largest drag at -4.1% contribution. Our Industrial and Real Estate picks modestly outperformed their sector ETFs, while Financial Services and Consumer Cyclical holdings lagged their benchmarks. The stark contrast between our technology outperformance and basic materials underperformance highlights the importance of our systematic sector allocation and stock selection process.

Pit Stop

This week's spotlight focuses on our top-performing technology holding that demonstrated the power of our systematic stock selection approach.

LITE - Lumentum Holdings Inc

Week: +15.5% | MTD: +6.3% | 6M: +252.6%

LITE emerged as our week's top contributor, surging +15.5% and adding +0.9% to total portfolio returns. The optical networking component manufacturer has been a standout performer in our technology allocation, benefiting from the ongoing data center buildout and AI infrastructure investments. Recent strength has been driven by improving demand visibility for optical transceivers and datacom products, with the company well-positioned to capitalize on the accelerating need for higher-bandwidth connectivity. The remarkable 6-month gain of +252.6% exemplifies how our systematic approach can identify and capture significant technology theme winners early in their cycles.

Week Ahead

The coming week brings a critical data-heavy Friday that could significantly impact market direction and Federal Reserve policy expectations.

Portfolio Earnings

No portfolio holdings are scheduled to report this week.

Key Events

Friday's employment report and inflation expectations data will be critical catalysts for both market direction and our systematic models. The combination of unemployment data and multiple inflation measures could significantly influence Federal Reserve policy expectations and sector rotation patterns. Our systematic approach remains well-positioned to adapt to any resulting changes in market dynamics, with our current ACCELERATING mode ready to capitalize on emerging opportunities while maintaining disciplined risk management.