In this scan, we look to identify the strongest growth stocks as they climb the market-cap ladder from small- to mid- to large- and, ultimately, to mega cap status (over $200B).
Once they graduate from small-cap to mid-cap status (over $2B), they come on our radar. Likewise, when they surpass the roughly $30B mark, they roll off our list.
But the scan doesn't just end there.
We only want to look at the strongest growth industries in the market, as that is typically where these potential 50-baggers come from.
The market keeps rewarding investors for buying some of Wall Street's most hated stocks.
We're getting buy signals from biotechnology and crypto stocks, which tends to happen in healthy market environments.
With this in mind, we're going back to the well and buying a biotech stock with nearly 1/3 of the float sold short and a double-digit days-to-cover ratio.
The stock we're buying is named after what was once an important ancient trade center in modern-day Turkey.
Let's talk about how we're playing this short squeeze:
I have the pleasure of staying at a place right next to ocean. It really is lovely.
I've talked a lot with the guys on the team and they all say the same thing.
As a trader, it's so valuable to spend time looking at the ocean. It gives you a tangible appreciation for something larger than yourself.
The waves of the ocean have massaged the shore long before we got here and will continue to do so long after we've gone. As such, we all understand that we can't stop the force of the ocean.
Markets are the exact same.
Some traders get fixated on the idea that there are secret players manipulating the order flow. But that's like trying to blame a group of swimmers for controlling the tides. The market, like the ocean, is a force of nature driven by millions of participants – from retail traders to institutions, each adding their drop to the vast expanse of liquidity. No single entity can truly control these waters.
Below is the 7th ASC Mastermind Lab Course. These are special videos that will be made available throughout the duration of the 12-week course featuring conversations with professionals from across Wall Street discussing topics in their expertise.
In our last Mastermind Lab, I spoke with Jason Perz about the relationship between bonds, commodities, and currencies. This time, I wanted to bring the conversation back to the stock market. Enter Todd Sohn, ETF & Technical Strategist at Strategas Securities.
Todd and I discussed the ETF market at length, how it's evolved in recent years, and its future. We also discussed a variety of different intermarket analysis techniques that incorporate ETFs.
Shoutout to my boy Kenny Glick. He's the man. And I feel like I'm channeling him a bit today. I recently saw him talking about how he's getting into a trade in a name that has failed on him so many times in the past. Yet, when there's a favorable setup, he has to step up and take another swing -- even though he's seen this movie before.
I'm going to do something similar today in a crypto miner. I've been beaten time and time again with these things. But one of these times it's got to work! Why not today?
Please forgive my tirade at the beginning of this episode about my short $MTB trade. I had to defend my honor...
But after that, me and Strazza get into the setup in MARA Holdings $MARA and how we arrived at what might seem to a lot of you (me too) a pretty high risk, but potentially huge reward trade:
Despite bond yields and dollars screaming higher and reaching overbought conditions, stocks and precious metals rallied during what is historically the worst time of the year.
I'm continuing my recent theme of portfolio diversification today with another short position, this time in a stock that should be performing well heading into Halloween and holiday season -- but isn't.
In fact, the chart looks like its got a lot of room to fall if their upcoming earnings report disappoints.
Welcome back to Under the Hood, where we'll cover all the action for the two weeks ended October 25, 2024. This report is published bi-weekly, in rotation with The Minor Leaguers.
What we do here is analyze the most popular stocks during the week and find opportunities to either join in and ride these momentum names higher, or fade the crowd and bet against them.
We use a variety of sources to generate the list of most popular names.
