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.
In today's Flow Show, Steve Strazza and I discuss our growing frustrations with the current market environment. Seems neither our bullish bets nor our bearish bets are gaining any traction in this tape.
What can we do with this information?
Watch the show below to see how we arrived at the details for today's trade.
Here's the Play:
I like entering into a $FCX February 30/35/45/50 Iron Condor for an approximately 70-cent net credit. This means I'll be short equal amounts of the February 35 puts and 45 calls, and long the same amount of 30 puts and 50 calls to cap my maximum risk:
If you want to know what's moving markets this week, and how we're thinking about profiting from it, then the Morning Show is for you!
Today's guest is Jay Woods, New York Stock Exchange Floor Governor and Chief Global Strategist at Freedom Capital Markets. He messaged me that he disagrees with my take on the market so we're about to debate LIVE on the show. You're not going to want to miss this one!
We've had some great trades come out of this small-cap-focused column since we launched it back in 2020 and started rotating it with our flagship bottom-up scan, Under the Hood.
For the first year or so, we focused only on Russell 2000 stocks with a market cap between $1 and $2B.
That was fun, but we wanted to branch out a bit and allow some new stocks to find their way onto our list.
We expanded our universe to include some mid-caps.
Nowadays, to make the cut for our Minor Leaguers list, a company must have a market cap between $1 and $4B.
If you want to know what's moving markets this week, and how we're thinking about profiting from it, then the Morning Show is for you!
Today's guest is fellow twin-boy dad Todd Gordon, Portfolio Manager at Inside Edge Capital. Todd is an old pal, veteran trader and world class skier. You're not going to want to miss this conversation!
