2 More Trump Trades, Nancy Pelosi Buys AI, Algorithm Signals And Swing Portfolio Update (+47%)

This Market Is Full Of Opportunities

TL;DR

Trump is officially in office again and savvy investors know what this means.

Political feelings aside, Nancy Pelosi is buying into the Trump rally, including a very freshly IPO’d AI company.

Our market-beating Algorithm has detected some stocks to buy on the dip

The Swing Portfolio is back near all-time highs, boosted by the timely addition of a long position on Microstrategy's MSTR 0.00%↑

Expect To Learn:

• 2 stocks To Buy Today To Profit From Trump’s Presidency

• What DC Insiders, including Nancy Pelosi, have been buying in the last month

• Buy signals flashed by our market-beating Algorithm

• Update on our Swing Portfolio, up 12% in the last week.

2 More Trump Trades

Yes, 2 More Trump Trades if you can believe it.

Back in November, we highlighted 5 Trump Stocks to watch, including Tesla, DJT and Coinbase. These stocks have done quite well.

We later added 3 more Trump stocks to that list, including energy and healthcare names.

And now we are back for 2 more, making for a nice neat total of 10.

These three stocks are looking very attractive right now, each for their unique reasons. I own some of these names in my LT portfolios, and may even add some more for a trade.

Marathon MARA 0.00%↑

Needless to say, Trump is a bullish force for crypto. This is a man who has launched his own cryptocurrency and actively promoted Bitcoin.

Interestingly, Bitcoin is well over $100K and looks bullish, but many miners are behind.

This makes little sense, especially when it comes to MARA. Here are some key points to consider:

• Bitcoin Treasury Position: Holds the second-largest Bitcoin treasury among publicly traded companies (44,893 BTC), only behind MicroStrategy (MSTR).

• Low Valuation: Trades at a deeply discounted multiple (mNAV of 1.349X BTC value) compared to peers, suggesting significant upside potential.

• Largest Bitcoin Miner: Operates the largest publicly traded mining operation with 53.2 EH/s, generating substantial BTC for its treasury.

• Innovative Revenue Streams: Diversifies income through BTC lending, energy sales, and other ventures (e.g., 2PIC, Kaspa mining).

• Efficient Capital Strategy: Uses low-interest convertible debt to accumulate BTC, mirroring MSTR’s successful model.

• Leverage for Higher Returns: High leverage amplifies potential gains in a Bitcoin bull market, making it attractive for risk-tolerant investors.

• Relative Valuation Gap: Comparable companies like RIOT are valued higher despite smaller mining operations, indicating market undervaluation of MARA.

MARA has been slowly grinding up since October, and it looks like we could finally be ready for a larger breakout. MACD is flipping bullish and we are back above all the daily EMAs.

MARA combines the core strengths of a Bitcoin treasury with the operational advantages of being the largest Bitcoin miner. Its discounted valuation and parallels to MSTR present a compelling opportunity for investors, especially in a rising Bitcoin market.

VICI Properties VICI 0.00%↑

Yes, this is a REIT. Did you also forget that Trump is, first and foremost, a real estate developer?

REITs have certainly underperformed in the last year in the face of higher interest rates. But how long will this really last? We know how Trump feels about high interest rates and debt (like most people, he doesn’t like them)

But, unlike most people, he actually wields the power to do something about it.

VICI stands out as a good REIT to buy right now, with a favourable valuation and strong ratings from Wall Street and SA analysts as shown above.

What I like most, is that VICI has some Key Differentiators that make it stand out above other REITs and give it a strong moat.

Casino Segment Dominance

• High Barriers to Entry: Gaming properties feature long-term contracts (~41 years), CPI-linked rent increases (90%), and robust tenant transparency due to SEC reporting requirements.

• Prime Las Vegas Exposure: VICI owns 10 trophy assets on the Strip, including 660 acres of land, ~41,400 hotel rooms, and 5.9 million square feet of convention space.

Diverse Experiential Investments

• Strategic Acquisitions: VICI has expanded into health and fitness, amusement parks, and entertainment centres with investments in Bowlero, Chelsea Piers, and Canyon Ranch.

• Partnerships with Growth-Minded Operators: VICI maintains rights to acquire real estate assets from partners like Bowlero and Canyon Ranch, ensuring embedded growth opportunities.

Best-in-Class Dividend Growth

• Dividend Strength: With a 5.9% yield, dividends are well-covered at 75% of AFFO. VICI’s growth trajectory positions it as a future Dividend Aristocrat.

Financial Resilience

• Strong Liquidity: $2.9 billion in total liquidity (as of Q3-2024) supports ongoing acquisitions and capital projects.

• Cost Efficiency: G&A expenses stand at a market-leading 1.7% of revenue.

VICI trades at approximately 13x AFFO, in line with peers like Realty Income (O) and Gaming and Leisure Properties (GLPI). Its AFFO per share is forecasted to grow by 4% in 2024, with potential for further valuation growth as the market recognises its unique positioning.

VICI is a top pick for investors seeking predictable income and long-term growth. At current levels, shares offer a compelling opportunity with a Strong Buy rating and a year-end price target of $33.

If you like the charts shown above and want to learn more about these stocks, I recommend you check out Seeking Alpha. My personal favourite source of in-depth reports, data and valuation metrics.

Pelosi Buys Trump

In investing, keeping emotions out of the equation is crucial, and that’s exactly what Nancy Pelosi is doing.

She beat the market again in 2024, (71% versus 24.9%) and this is what she’s been buying.

The data here is provided by Trendspider, which has a wonderful set of trackers, including the Pelosi Tracker. The one above is for overall Congressional Buys, but we’ll focus on Nancy since she is the GOAT.

Between December 20 and January 17, she made nine transactions, including seven purchases of stock options and two sales.

Notably, she sold 31,600 shares of Apple (AAPL) for $7.91 million and added 10,000 shares of Nvidia (NVDA) for $1.34 million. Her timing proved prescient, with Nvidia gaining 2.5% while Apple dropped 8.2%.

Pelosi also opened two new positions: Vistra (VST) and Tempus AI (TEM). She acquired call options in both, betting on Vistra’s rise as a major nuclear power player and Tempus AI’s potential in healthcare.

TEM, despite losing value since its IPO, is seen as a promising AI stock, also favoured by investing guru Cathie Wood.

I’m going to discuss this stock more in detail below, but first, our algorithm has flashed some notable buys.

2 Algorithm Buy Signals

A few months ago, I developed my market-beating algorithm. This has served to outperform the main indexes, and can also be applied to single stocks.

These two recently flashed a Buy:

Tesla $TSLA

The algorithm backtests really well against Tesla, giving a 319% return over the last 1000 candles.

It’s not visible here, since we are already in a long position, but the Algo would have flashed a buy based on the MACD crossover.

This is a good dip buying opportunity IMO, with Tesla reporting earnings soon and all the momentum behind them.

Tesla was one of our best trades in 2024.

Microsoft $MSFT

MSFT has been trading sideways in the last few months, but I think the recent dip is also buyable. There is plenty of support below, and with Trump doubling down on AI, MSFT and big tech is set to win big.

If you like the charts above and are interested in algorithmic trading, you can learn more here, and you can check out Trendspider, which is my personal favourite when it comes to charting and TA.

And now, for the good stuff.

In the next section, we will review:

• Pelosi’s latest AI Play; Should You Buy Too?

• Two More Algo Buys; +400% Returns In The Last 4 Years

• Swing Portfolio Update; How We Beat The Market In 2024

Hopefully, you’ve enjoyed the reading so far. I feel quite confident that plenty of Alpha has been provided above.

Consider upgrading your subscription to see the full post and gain access to all we have to offer. Market-beating portfolios, Algorithmic trades, In-depth macro reports and a thriving community.

I’m also working on automating the algo into Telegram signals. Bear in mind, we will be increasing prices at the end of February, so this is one of the last chances to get grandfathered in at the lowest possible price.

Tempus AI; Preliminary Report

With Pelosy buying this stock, and so shortly after IPO, it certainly looks like a very, very interesting idea.

I’m going to do a quick write-up here, and later on in the week do a more in-depth analysis.