From the Desk of Steve Strazza @Sstrazza

As our Premium Members already know, we have a laundry list of scans that we run internally on an almost daily basis.

Different market environments, naturally, are more conducive to certain scans and less so to others.

We think our “Freshly Squeezed” scan is perfect for the current market. With so many individual issues in massive drawdowns as the broader market begins to turn a corner, there are going to be some serious short-covering rallies in some of the most beaten-down names.

In fact, it’s already starting to happen. Infamous meme stock, AMC Entertainment $AMC was up 25% at its highs today (not on a closing basis).

Our scan is quite simple. It is designed to identify stocks with heavy short positions. When a stock is heavily shorted, it means there are natural incremental buyers. Bulls need incremental buyers, as this is the only way price can move higher. When shorts are proven wrong, they have to buy their shares back to close out their position. 

We pair this short-interest data with short-term momentum overlays, as this is the match that is needed to spark a short squeeze...

From the Desk of Kimmy Sokoloff

A consolidation day it sure was.

As long as the $SPX hangs on to to 4,050, we have potential to trade higher.

If we break below that level, we run the risk down to 4,034, then 4,020. 

I continue to wonder what people are so angry about.

More and more stocks keep going up.

Fewer and fewer are going down.

More sectors are participating.

More countries are acting strong.

What's the problem?

The CEO, the CFO, and the chief technology officer of Hillman Solutions Corp $HLMN all filed Form 4s reporting insider buys.

The three C-suite offers combined bought $1.5 million worth of HLMN shares.

From the Desk of Steve Strazza @Sstrazza

When investing in the stock market, we always want to approach it as "a market of stocks."

Regardless of the environment, there are always stocks showing leadership and trending higher.

We may have to look harder to identify them depending on current market conditions. But there are always stocks that are going up.

The same can be said for weak stocks. Regardless of the environment, there are always stocks that are going down, too. 

We already have multiple scans focusing on stocks making all-time highs, such as Hall of Famers, Minor Leaguers, and the 2 to 100 Club.

We filter these universes for stocks that are exhibiting the best momentum and relative strength characteristics. 

Clearly, we spend a lot of time identifying and writing about leading stocks every week, via multiple reports.

But we also highlight lagging stocks on a recurring basis.

Welcome to the Short Report.

We publish...

From the Desk of Kimmy Sokoloff

What a day.

The indices rallied off of Powell’s speech, and the $SPX crossed the 200-day moving average. The SPX almost closed its gap at 4,083 back on Sept. 12.

We can trend higher into the 4,120 mark in time.

This is the video recording of our November 30, 2022, Inside Scoop Weekly Strategy Session.

The largest insider transaction on today’s list is a Form 4 filing by General Atlantic LP.

The hedge fund reported an additional purchase worth roughly $7 million in HireRight Holdings Corp $HRT.

From the Desk of Kimmy Sokoloff

I think it could be a decision day for the indices, and we're either setting up for a ripper or a decent drop.

The $SPX needs to get above 3,972. If it does, we can see 4,000-plus.

Otherwise, we can see 3,922, then 3,860.

From the Desk of Steve Strazza @Sstrazza 

While there have been some real winners during the recent rally, the run off the lows from this fall has also left many stocks behind.

Value stocks, cyclicals, and blue-chip names have prospered for the past two months, as groups like financials and industrials have been the latest beneficiaries of sector rotation. 

At the same time, mega-cap technology and the most-speculative growth areas of the market have continued to show relative weakness.

To be clear, it’s not like these stocks have been crashing lower while the rest of the market rallies. Of course, many have participated in the upside action.

But, on balance, the performance from growth stocks has been lackluster.

The disparity between the growth-heavy Nasdaq 100 and the value-heavy Dow Jones Industrial Average perfectly illustrates what’s taken place:

The Dow has rallied almost 20% off its October low, retracing more than 62% of its year-to-date drawdown. Notice how it briefly reclaimed the August highs...

From the Desk of Kimmy Sokoloff

Overall, the market acted weak today.

The $SPX remained below its eight-day moving average, which is at 3,972. This index came close to touching support at 3,933.

The co-founder and executive chairman of Energy Transfer $ET, Kelcy Warren, reappears on our list today.

Warren reported an additional buy of roughly $16 million.