Congress – Led by Nancy Pelosi – Continues to Beat the Market With Bullish Investments

Hello,

below a summary of relevant events happened in the stock market in the last week

📈 1/ Stocks and sectors bought by US politicians last week

This week, the trading activity at Capitol Hill was substantial, with 131 transactions taking place

Metals & Mining and Banks were the most invested sectors

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🏦 2/ US Politicians potential insider trading: Nicole Malliotakis Adds Bullish Flavor to Portfolio with Chipotle Investment

In a recent series of trades, Rep. Nicole Malliotakis has shown a keen eye for high-performing stocks by adding Chipotle Mexican Grill Inc. (CMG) to her investment portfolio. On June 4, Rep. Malliotakis purchased shares of Chipotle at a stock price of $3079.04. Since then, the stock has seen a remarkable increase of 11.32%, with the latest price hitting $3427.61, proving to be a lucrative addition to her holdings.

Rep. Malliotakis, a Republican from New York, has a relatively active trading history, with ten disclosed trades across nine different issuers, amounting to a total volume of $414,000. Her most recent trade prior to this was on June 10, 2024. She serves on the Committees for the Coronavirus Pandemic and Ways & Means.

Chipotle Mexican Grill, known for its fast-casual dining experience featuring bowls, tacos, and Mission burritos, operates 3,200 restaurants as of March 2023. The company's name, derived from the Nahuatl word for a smoked and dried jalapeño chili pepper, reflects its dedication to flavorful, made-to-order meals. With a market capitalization of $94.15 billion, Chipotle continues to be a strong player in the fast-casual dining sector.

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How to be notified when politicians buy / sell stocks

As seen before, some suspicious trades were made by Congress Members and their relatives

However, the GOOD NEWS is that their moves can be copied (politicians need to disclose their stock positions)

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📄 3/ Interesting stock market stories

STORY #1:  Congress – Led by Nancy Pelosi – Continues to Beat the Market With Bullish Investments

Congressional Trading has long been a controversial issue among investors and market watchers. While insider trading is illegal, stock trading by US Congress members remains public. The concern arises when members trade stocks relevant to the Committees they serve on.

In 2023, Congress outperformed the stock market for the third time.

Nancy Pelosi is a prominent figure in Congressional trading due to her husband's extensive trades. Paul Pelosi's investments include up to $5 million in Nvidia (NVDA) stock options, which surged by 178.28%, and significant trades in Palo Alto Networks (PANW) and other tech stocks.

The Unusual Whales Democratic ETF, tracking Democrat trades, rose nearly 30% in a month, surpassing the 24% gain of the S&P 500. A similar Republican ETF saw a 15% rise.

A potential ban on Congressional trading has been proposed by politicians like Sen. Josh Hawley, Rep. Abigail Spanberger, and Rep. Ro Khanna. Until such a ban is enacted, these trades will remain a focal point for investors.

If you want to be notified when insiders trade stock, we send daily email alerts here 

STORY #2: Boeing CEO Dave Calhoun Faces Senate Scrutiny Amid Safety Concern

In a contentious Senate hearing on Tuesday, Boeing (BA) CEO Dave Calhoun faced intense criticism over the company’s safety record. This hearing comes in the wake of two fatal 737 MAX crashes and a recent mid-air emergency. Calhoun apologized to the victims' families and accepted responsibility.

Senator Josh Hawley criticized Calhoun's compensation, which rose to $32.8 million in 2023, and questioned why he hasn’t resigned. Calhoun defended his tenure, highlighting actions taken to address safety issues, despite plans to retire by the end of the year.

Senator Richard Blumenthal urged the Justice Department to prosecute Boeing for compliance failures, citing overwhelming evidence. The Justice Department has until July 7 to decide on prosecution, after finding that Boeing failed to implement a proper compliance program following the crashes.

Calhoun acknowledged that the recent Alaska Airlines door plug incident was due to a manufacturing defect. He also accepted responsibility for the software issues that led to the 2018 and 2019 crashes in Indonesia and Ethiopia, which killed 346 people. Despite these admissions, Boeing’s chief engineer, Howard McKenzie, downplayed concerns about incorrectly tightened fasteners on 787 jets, asserting they were safe.

A new whistleblower, Sam Mohawk, reported systemic issues with nonconforming parts at Boeing’s 737 factory, further intensifying scrutiny. The National Transportation Safety Board (NTSB) and the Justice Department are investigating the recent Alaska Airlines incident, where key bolts were missing.

Boeing stated it is reviewing these claims and has increased inspections and the size of its quality team since 2019. The company delivered a quality improvement plan to the FAA, following an order to address systemic quality-control issues.

Recent congressional trades saw Bill Keating and Blake Moore sell significant shares in February and January, respectively. Boeing’s stock closed 1.9% lower at $174.99 on Tuesday.

If you want to be notified when politicians trade stock, we send daily email alerts here 

STORY #3:  A Summary of the Main Trades Placed by Politicians and Insiders this Week

Senator Tommy Tuberville just disclosed dozens of stock and option trades. Many of the trades were in companies he directly oversees. Here are some that stood out:

• Massive stock sales, including closing out positions in over 40 companies — Cleveland-Cliffs (CLF), Intel (INTC), Paypal (PYPL), Barrick Gold (GOLD), Paramount Global (PARA), Humacyte (HUMA), and more.

• Option Call purchases in Barrick Gold (GOLD), Fifth Bank Corp (FITB), S&P Biotech ETF (XBI), Cleveland-Cliffs (CLF), Gilead Sciences (GILD).

• Option Put purchases in Cameco Corp (CCJ), Ark Innovation ETF (ARKK), Cleveland-Cliffs (CLF), Gilead Sciences (GILD), Adobe (ADBE), Keycorp (KEY), Chevron (CVX).

Representative Mike Kelly disclosed a trade in Cleveland Cliffs (CLF), including a purchase ranging from $50k-$100k.

Representative Mark E. Green sold $100k-250k of NGL Energy Partners (NGL) stock on June 03. The stock has fallen nearly 11% since trade.

Representative Mike Collins disclosed a purchase of a cryptocurrency called Veldrome. The coin appears to have a market cap of less than $100M. He has also purchased Ethereum (ETH).

Representative Roger Williams has violated the STOCK Act. He just disclosed trades from as far back as 2019, despite Congress being legally required to disclose trades within 45 days of when they are made. Trades include Alphabet (GOOGL), Eli Lilly (LLY), Meta (META), Disney (DIS).

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📄 4/ Political Trading Bot

As you may remember, we have a trading bot that buys the same stocks as politicians

The bot is offered by the SEC registered broker QB, which will perform the trades. We will just provide them with the necessary data to execute

This means that every time politicians buy sizable amount of stocks, the bot buys those stocks as well

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• We launched in May 2022 and the performance was +24% return

• Performance since April 2020 was +237% return