Alternative Data: what is it?

Hello Seven Lakers,

when making investment decisions, you don’t want to rely on indicators used by the majority of traders

Sometimes, there are some hidden indicators that nobody considers, but that can contain a lot of Alpha (i.e could allow you to beat the market and make huuuuge profits)

Those indicators are the so called…

🤓ALTERNATIVE DATA

Alternative data includes, among others, the following:

🏛️ 1/ Government data

Government can influence the market with its decisions; if you get notified on government decisions, you can quickly understand how the market will move in the short term and make profit

The government data we analyse are the following

• Congress Trading: trades made by Congress members

• Election Contributions: companies that donate money to politicians

• Behind The Curtain: analyze which bills are evaluated by Congress

• Government Contracts: track government contracts with companies

• Corporate Lobbying: companies that spend money for legislative influence

• Inflation: companies that are exposed the most to inflation

• Patents: companies that get new patents approved

🌐 2/ Internet community data

If you look at google trends, forums, social media, and other internet communities online, you can discover what are the hot topics + what all the smart people are currently investing into. You can even spot new emerging trends before they get priced by the market and anticipate market moves

The internet community data we look at are the following:

• Hiring reports: most hired department per company, in order to see which areas they are trying to improve the most

• Meme Stock Rankings: most mentioned meme stocks on forum / social media

• WallStreetBets: most mentioned stocks on WallStreetBets forum

• Corporate Twitter: companies that are growing the most on Twitter

• CNBC Stock Picks: stocks picked by analysts at CNBC

• App Ratings: public companies Apps receiving most positive reviews on App Store

• Jim Cramer Tracker: check what Jim Cramer recommends and do the opposite (lol)

• Fear and Greed Index: tracks the relative bullishness or bearishness of discussions on internet forums

• Google Trends: most searched companies on Google

• Amazon Pricing Trends: trends of pricing for different Amazon product baskets

• r/Cryptocurrency: most mentioned Cryptos on Reddit

• InvestorsHub: most mentioned stocks on online trading community InvestorsHub

• Wikipedia Pageviews: numbers of views on Wikipedia pages of traded companies

🐋 3/ Insider trading and investments made by whales

Insider traders and big whales (i.e., investors betting millions of dollars on the market) are forced by SEC to disclose their trades; given they invest either with insider information or with big size, it is worth to keep an eye on them and to think if it is worth to copytrade them

The data we look at are the following:

• Insider Trading: insider trading by CEOs or Top Managers

• Institutional Holdings: trades placed by big investment funds

• Insider Tracker: historical performance of insider traders to check if it is worth to copytrading them

• Estimize Forecasts: Estimize crowdsources earnings and macroeconomic estimates from over 100,000 contributors across the globe

• Risk Factors: annual reports disclose risk factors for companies

• Whale Moves: notable investors trades (Micheal Burry, Bill Gates, Warren Buffett)

• Stock Splits: newly announced stock splits

• Corporate flights: corporate private flights during the day (you can understand where company management is flying to discuss deals that can impact the market)

🧠HOW TO KEEP TRACK OF ALTERNATIVE DATA

Keeping track of all the data mentioned in the paragraph above is incredibly useful and might help you to make a lot of money. However it is difficult and can requires a lot of time

Luckily, every day, we send PREMIUM email summaries with:

• Latest update on Alternative Data such as 1) government data, 2) internet community data, and 3) Insider trading and investments made by whales

• Latest update of notable investors portfolios (Nancy Pelosi, Warren Buffet, Bill Gates, Micheal Burry and more)

• Annual subscribers will also start receiving reports with stock picks based on on Alternative Data, mostly hidden to common investors

Click on the button below to start receiving Alternative Data emails 👇👇👇

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