We are on fire in 2024!
1/18/24 Prospero.Ai Investing (89th) Edition (Mid-Week)
Today is an important day for Prospero.Ai, but more on that in the next section! This might be information overload for our nearly 1,000 new readers today (thanks @iamcoriarnold). To get to know us, we suggest our 9 most important investing lessons video.
Building on our consistent track record, our 2024 newsletter picks are starting red hot – beating the S&P 500 by 248% on an annualized basis. (updated 1/20) Moreover, we are beating SPY benchmarks by 90%, with 19 out of 21 picks outperforming. These results represent more than just a nice start; it’s a continuation of our stellar performance over the past two years, where each year we were ~50% above the S&P 500. With a strong foundation we couldn’t be more excited for a game-changing 2024.
Don’t have our app yet? Use it to track your investments with Prospero’s proprietary AI tech.
Why is today a big day?
Prospero.Ai is closing in on the end of our seed round. We are thrilled about all the new features we will be able to roll out after we are done, such as trade alerts, a Discord channel where we will release our latest test algorithms and a WebApp with a lot more of the charting features that are often requested. (Don’t worry loyal users we always hear you and work hard to build what you ask for!)
We are big on transparency here at Prospero.Ai. Feel free to look at our January investor presentation or our warm or cold “reach outs” we will be distributing today.
Don’t worry, as promised, our loyal readers will have chances to reap rewards for joining us early on our success journey. Other than what was previously mentioned, we plan to launch a “Kickstarter” (or similar) where anyone who donates at least $1 will get ALL our products free in 2024 ($1,000+ value) if we meet our investment goal!
Market Update
This section is normally “locked” for our paid midweek letter (and always free on the weekend) but it’s free today.
The last three weeks we called the market swinging up, then down and now back up! (Looking good, fingers crossed!) Linking a thread, if you want to learn more.
We closed three of our shorts before market close yesterday and added a new long this morning. Overall, we moved from six longs and five shorts, to eight longs and three shorts.
For our many new readers today, we did a long update on our overall macro view in our last letter. But we cannot show this picture below enough to remind you that Bears aren’t just grumps or “perma Bears” there are legit reasons to be worried about this market despite our overall slightly Bullish lean.
We are adjusting our levels up a bit because there should definitely be some cause for concern in this overall Bullish trend if either key Net Options Sentiment reading dips below 40.
For Tech: QQQ Net Options Sentiment > 40 = Bullish < 30 = Bearish.
For Non-Tech: SPY Net Options Sentiment > 40 = Bullish < 30= Bearish.
Sector Analysis / Portfolio Macro Strategy
At the risk of sounding like a broken record, Consumer Discretionary continues to be a better target for Shorts. This sector just keeps getting hit hard. Healthcare has some room for recovery as it experiences some volatility, but we are still feeling Bullish on it. The same goes for the two other sectors, Technology and Communications, which have been performing well but took a recent hit. Consumer Defensive, is starting to climb and may be a good sector to watch considering its room for recovery.