Week in Review: May 1 - May 9, 2026

Performance Snapshot

AlphaWizzard delivered a solid +5.1% this week, outperforming the S&P 500's +2.4% but slightly trailing the Nasdaq's exceptional +5.5% gain. Year-to-date, we continue to significantly outpace both benchmarks with +26.5% versus SPY's +8.2% and QQQ's +15.8%. Our disciplined risk management has also resulted in a lower maximum drawdown of -8.8% compared to -11.8% for the Nasdaq, demonstrating superior downside protection throughout our track record.

The F1 Dashboard

Our F1 Dashboard maintained a steady 49% equity exposure throughout the week, keeping us in CRUISING mode. This measured positioning reflects our systematic approach to risk management, allowing us to participate meaningfully in market upside while maintaining sufficient dry powder. With nearly half our portfolio in cash equivalents, we're positioned to either accelerate into momentum or brake defensively should conditions shift.

Market Radar

Markets surged to new all-time highs this week, with both the S&P 500 and Nasdaq posting their sixth consecutive winning week. The rally was fueled by a Goldilocks employment report showing 115,000 jobs added in April (beating the 55,000 estimate) while wage growth cooled to 3.6% annually, below the 3.8% forecast. This combination suggested a labor market that's cooling but not collapsing, keeping Fed rate cut hopes alive while easing inflation concerns.

Technology dominated the week's performance, with memory and AI-adjacent stocks leading the charge. Semiconductor stocks soared on strong earnings from major players, while energy lagged as Brent crude climbed above $100 amid ongoing Middle East tensions. The Iran conflict continues to add volatility to oil markets, with gasoline prices now averaging $4.22 per gallon compared to $2.98 before the February escalation.

Heading into next week, attention turns to Tuesday's critical inflation data, with both headline and core CPI readings for April due before market open. With 89% of S&P 500 companies having reported Q1 results and 84% beating estimates, the earnings backdrop remains supportive as focus shifts back to economic fundamentals and Fed policy implications.

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. Impact is each sector's NAV-weighted EOD impact in percentage points (pp). Σ Impact (+4.55pp) sits slightly below the headline NAV (+5.10pp); the 0.55pp difference reflects cash-sleeve carry, dividends in period, and intraday execution by the daily risk overlay (the model uses end-of-day prices, while live trades happen throughout the day).

Technology was our standout performer, contributing +4.4% to portfolio returns as our holdings delivered +15.0% versus the sector ETF's +8.4%, demonstrating exceptional stock selection in the AI and cloud infrastructure space. Basic Materials also showed strong relative performance with our holdings up +5.0% versus the sector's +0.5%, benefiting from specific mining and materials plays. Even in Energy, where both we and the sector declined, our -2.8% return significantly outperformed the sector ETF's -5.4% drop. Our technology weighting of 29.5% proved perfectly positioned for this week's semiconductor and cloud computing rally, while our diversified approach across materials and energy provided additional alpha generation opportunities.

Earnings Scorecard

Our earnings results were highlighted by DOCN's exceptional beat, driving its +59.5% weekly surge as the cloud infrastructure company exceeded both EPS and revenue expectations amid strong AI demand. CCJ also delivered solid beats across both metrics, though uranium market concerns limited the stock's response. The mixed results from LITE and CDE reflect sector-specific headwinds, but our systematic approach ensures these individual outcomes contribute to longer-term alpha generation.

Pit Stop

This week's spotlight focuses on our standout performer that exemplified the AI infrastructure theme driving markets higher.

DOCN - DigitalOcean Holdings Inc

Week: +59.5% | MTD: +70.0% | 6M: +217.3%

DigitalOcean delivered a spectacular performance this week, surging nearly 60% following their Tuesday earnings beat that showcased the company's positioning in the AI infrastructure boom. The cloud infrastructure provider exceeded both EPS expectations ($0.44 vs $0.27) and revenue forecasts ($258M vs $255M), but more importantly, management highlighted accelerating demand from AI startups and developers building machine learning applications. As a simplified cloud platform competing against AWS and Azure, DigitalOcean has found its niche serving smaller, more agile AI companies that need rapid deployment capabilities. The stock's 217% six-month gain reflects the market's recognition that AI infrastructure extends far beyond just chip makers to include the entire cloud ecosystem supporting this technological revolution.

Week Ahead

The coming week brings critical inflation data that could significantly impact Fed policy expectations and market direction.

Portfolio Earnings

No portfolio holdings are scheduled to report this week.

Key Events

Tuesday's inflation quartet will be the week's defining moment, with markets closely watching whether April's readings support the Fed's patient approach to rate cuts. Following this week's Goldilocks jobs report, any signs of cooling inflation could fuel another leg higher in risk assets, while persistent price pressures might temper recent optimism. Our systematic approach keeps us positioned to respond dynamically to whatever the data reveals, with our 49% exposure providing both participation upside and defensive flexibility.

Weekly investment newsletter, every Sunday — positioning, performance vs SPY/QQQ, and what we're watching next. No spam.