Artificial intelligence continues to permeate throughout the economy, and one such example coming out of the Health Care sector is Tempus AI (TEM). Founded in 2015 and IPO’ing last June, TEM uses AI to analyze medical data in order to help provide diagnoses and treatment options for patients. As shown below, the stock saw a solid rally in the first couple of months after its IPO but quickly gave up those gains throughout the late summer and fall before a failed retest of those highs in November.  By December, the stock had fallen through its 50-DMA and continued to erase any post-IPO gains. That is until the past couple of weeks.  On January 14, the stock found a bottom which also happened to be the same day that House Rep and former Speaker of the House Nancy Pelosi purchased 50 call options in the stock that was later revealed in a disclosure on January 17.  In reaction to the disclosure, the stock saw a one-day jump of 21.5%. There has been further follow through in the days since with the stock now back above its 50-DMA and at its highest level since early December.  Since Pelosi’s purchase, TEM has rallied more than 80% from the low $30s to the high $50s!
 
Pelosi (more specifically, Pelosi’s husband Paul) has garnered a reputation as a successful trader in recent years as the trading activity of politicians has become increasingly scrutinized.  Up to this point, most of Pelosi’s trades have been in larger-cap names that didn’t necessarily move when the disclosure came out. TEM is one of the first stocks we can recall that likely rallied significantly because of a Pelosi trade disclosure.

Unusual Whales has created two counterpart ETFs that are meant to track Republican Trading (KRUZ) and Democratic Trading (NANC) based on trading activity disclosures from members of Congress and their spouses.  As shown below, the Democratic Trading ETF has outperformed SPY since the ETF’s inception in early 2023 with NANC up 58.9% compared to a 46.6% gain in the S&P 500 (SPY). The Republican Trading ETF (KRUZ) has gained roughly 30%, which means it’s up about half as much as the Democratic ETF.  Based on these two ETFs at least, investors have recently been better off following the trading patterns of Democrats rather than Republicans in Congress.More By This Author:Old School Cool Again?
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