• Quant 30 – Up over 28% since June 2025
• Quant Weekly – Up over 41% since June 2025
• Legacy – Up over 250% since April 2023
• Changes made to the Quant Portfolios

USA Stock Market recap Last Week

• S&P 500: The large-cap benchmark posted a modest weekly gain, rising about 1.6% on broad strength and rotation out of mega-cap tech into pro-cyclical sectors.
• Nasdaq Composite: The tech-heavy Nasdaq also climbed, up roughly 1.9% on the week, supported by solid earnings and tech sector resilience.
• Dow Jones Industrial Average: The Dow led the major indexes with a stronger ~2.3% gain for the week, benefiting from positive bank earnings and less sector concentration in high-multiple tech.
• Russell 2000: Small-caps held up well, with the Russell 2000 rising as smaller company stocks outperformed broader markets — also posting notable weekly gains.

Across the week, these indexes reflected broad participation from different market segments, with cyclical and financial stocks helping lift the performance of the Dow and Russell 2000 relative to more concentrated tech-oriented benchmarks.

Market Sentiment — Fear & Greed Index

• According to the CNN Business Fear & Greed Index, investor sentiment is tilted toward “Greed”, with recent readings around the low-60s (on a 0–100 scale). This signals more optimism than fear among investors, suggesting confidence in earnings and economic data has outweighed risk aversion this week.

Summary:
This week’s trading saw broad gains across the S&P 500, Nasdaq, Dow, and Russell 2000, with the Dow and small caps showing relatively stronger performance. The Fear & Greed Index remains in the “Greed” zone, indicating that sentiment among market participants is currently more bullish than bearish as earnings season unfolds.

All three Quant Portfolios made all-time highs on a monthly comparison.

Model Portfolio Quant Alpha Weekly

CommScope (COMM) completed its $10 Billion partial buyout this week and changed its name and symbol to Vistance Networks (VISN). A special dividend will be paid to shareholders by Vistance a couple of months in the future. It is expected to be around $10 a share.

No adds to the Portfolio this week

The 3 stocks with the highest Quant ranking in the Portfolio at this time are: MU, TTMI AND VISN.

Add: NONE

Model Portfolio Quant 30

Three Adds and three Removals for this update.

A short summary on new stock pick Ciena is below.

The 3 stocks with the highest Quant ranking in the Portfolio at this time are: LITE, VFF, and MU.

Add: CIEN (Ciena Corporation), VISN (Vistance Networks), LASR (nLIGHT)

Remove: UBER, STX (Seagate Technology), BAC (Bank of America)

What does Ciena do?

Ciena Corporation is a global network technology company providing hardware, software, and services to network operators worldwide. It operates across Networking Platforms, Platform Software and Services, Blue Planet Automation, and Global Services, offering optical networking, routing, switching, network control software, automation solutions, and support services. Founded in 1992, Ciena is headquartered in Hanover, Maryland.

Ciena (Pros)

• AI Infrastructure Positioning: Ciena provides essential high-speed optical networking that enables data movement between data centers, a critical layer as AI workloads become more distributed.
• Strong Revenue Growth and Margin Expansion: Quarterly revenue reached $1.35B, beating estimates, with FY2026 guidance of $5.7–$6.1B and ~17% operating margins—well above historical levels.
• Robust Order Backlog and Customer Wins: Record 2025 orders of $7.8B and a $5B backlog, supported by major hyperscaler wins for AI backend networks using Scale-Across and WaveLogic 6.
• Structural Demand Shift: Cloud revenue rose 49% year over year to 42% of total revenue, reflecting a successful shift toward higher-margin hyperscaler customers tied to AI data center buildouts.
• Technology Leadership in Optical Networking: WaveLogic 6 and Scale-Across architecture reinforce Ciena’s leadership across integrated systems, pluggables, and component-level solutions.

Ciena (Cons)

• Valuation Concerns: Shares have surged to ~57–77x earnings and ~41x forward P/E, leaving little room for error if AI capex slows.
• Margin Compression Risk: Expanding cloud mix may cap gross margins near ~43%, limiting further profitability gains despite revenue growth.
• Customer Concentration and Volatility: Heavy reliance on a small number of large customers could increase earnings volatility if hyperscaler spending shifts.

Model Portfolio Quant Alpha’s – Legacy

The portfolio now has 19 stocks in it. It is up over +250% since it began in 2023.

Remove: None

Click here for the Quant Alpha’s – Legacy details

Performance to 01-16-2026

Portfolio start date 6/27/25
Quant Alpha Weekly	41.91%
EQAL (Russell 1000 Equal Weight ETF)	12.58%
Portfolio start date 6/27/25
Quant 30	28.73%
EQAL (Russell 1000 Equal Weight ETF)	12.58%
Portfolio start date 4/14/23
Quant Alpha’s – Legacy	281.43%
EQAL (Russell 1000 Equal Weight ETF)	36.34%

Click here for the Live Quant scorecard

The Quant Alpha Weekly Portfolio remains ahead of its benchmark. It is up over 41% since it began on June 27, 2025.

For the Quant 30 Portfolio we are now entering a faster pace of turnover for this quarter. New earnings reports are starting to be made public and the Quant system will react to this new data with changes to Portfolio makeup. The Portfolio is currently up by 28%.

The Quant Alpha’s – Legacy Portfolio maintained its over 250% return in a classic Position Trading Portfolio implementation.

All content on this site is for informational purposes only and does not constitute financial advice. Consult relevant financial professionals in your country of residence to get personalized advice before you make any trading or investing decisions. This post was written with the assistance of artificial intelligence. The original ideas and final review are human-generated. Disclaimer

Copyright 2023-2026 SwingTrader.Trading. All Rights Reserved.