Week in Review: Jan 30 - Feb 7, 2026

Performance Snapshot

This week AlphaWizzard delivered a strong +3.9% return, significantly outperforming both the S&P 500 (-0.2%) and Nasdaq (-2.0%) by 4.1% and 5.9% respectively. Year-to-date performance continues to impress at +11.7%, substantially ahead of SPY's +1.3% and QQQ's -0.8%. Our systematic approach has maintained disciplined risk management with a maximum drawdown of -6.2%, better than QQQ's -7.3% though slightly higher than SPY's -4.5%.

The F1 Dashboard

Our F1 Dashboard remains in ACCELERATING mode with equity exposure steady at 83.5%. Like an F1 driver maintaining speed through a complex section of track, we're holding our aggressive positioning as our systematic signals continue to show favorable risk-adjusted return opportunities. This high exposure level reflects our models' confidence in current market conditions and the quality of signals we're detecting across our investment universe.

Market Radar

This week saw a notable divergence between sectors, with technology experiencing broad weakness while materials and industrials showed resilience. The market appeared to be digesting recent economic data and positioning ahead of Friday's critical inflation readings. Bond yields remained volatile as investors weighed the Fed's potential policy path against incoming economic indicators.

Sector rotation was the dominant theme, with traditional cyclical sectors like basic materials (+4.5%) and industrials (+4.7%) leading the way, while growth-oriented technology (-1.9%) and consumer cyclical (-2.6%) sectors faced headwinds. Healthcare managed modest gains (+1.9%), while financials (+1.5%) showed steady but unspectacular performance. This rotation suggests investors are positioning for a more balanced economic recovery.

Looking ahead, market sentiment appears cautiously optimistic despite this week's mixed performance. The upcoming inflation data on Friday will be crucial for determining near-term direction, with investors closely watching for signs that price pressures continue to moderate. The combination of jobless claims data mid-week and CPI readings to close the week should provide important insights into the Fed's future policy stance.

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.

Our technology sector stock selection was exceptional this week, generating +11.9% returns while the XLK ETF declined -1.9%, creating a massive +13.8% outperformance that drove +4.2% of total portfolio returns. Conversely, our basic materials holdings (+2.7%) lagged the strong XLB performance (+4.5%) by -1.8%, though still contributed +1.2% to returns. Healthcare was our weakest sector with -10.7% returns significantly underperforming XLV's +1.9% gain, primarily due to GH's -10.7% decline. The technology sector's dominance in our portfolio (35.3% weight) combined with stellar stock selection made it the clear driver of this week's outperformance. Our systematic approach successfully identified technology names that bucked the broader sector weakness, demonstrating the value of individual security selection over broad sector exposure.

Pit Stop

This week's spotlight focuses on our standout performer that exemplifies the power of systematic stock selection in volatile markets.

GLW - Corning Incorporated

Week: +18.3% | MTD: +18.3% | 6M: +88.0%

Corning delivered exceptional performance this week with an +18.3% gain, contributing +1.1% to our total portfolio returns. The specialty glass and ceramics manufacturer has been on a remarkable run, up +88.0% over the past six months as investors recognize the company's critical role in next-generation technologies including fiber optics, mobile device displays, and automotive applications. Recent strength appears driven by increased demand for optical fiber solutions as telecommunications infrastructure investments accelerate, combined with recovery in the mobile device market. Corning's diverse technology portfolio and strong competitive moats in specialized materials continue to drive both revenue growth and margin expansion, making it a key contributor to our technology sector outperformance.

Week Ahead

The upcoming week brings several critical economic data releases that could significantly influence market direction, particularly Friday's inflation readings which will be closely watched by the Federal Reserve and market participants alike.

Portfolio Earnings

No portfolio holdings are scheduled to report this week.

Key Events

Friday's inflation data will be the week's marquee event, with both headline and core CPI readings expected to provide crucial insights into the Federal Reserve's policy trajectory. The combination of mid-week jobless claims and multiple inflation readings should offer a comprehensive view of economic conditions. Our systematic approach remains well-positioned to navigate any volatility that emerges from these data releases, maintaining our disciplined exposure levels while capitalizing on any opportunities that market reactions may create.