From the desk of Steve Strazza @Sstrazza

Our International Hall of Famers list is composed of the 100 largest US-listed international stocks, or ADRs. We’ve also sprinkled in some of the largest ADRs from countries that did not make the market cap cut. 

These stocks range from some well-known mega-cap multinationals such as Toyota Motor and Royal Dutch Shell to some large-cap global disruptors such as Sea Ltd and Shopify.

It’s got all the big names and more--but only those that are based outside the US. You can find all the largest US stocks on our original Hall of Famers list.

The beauty of these scans is really in their simplicity.

We take the largest names each week and then apply technical filters in a way that the strongest stocks with the most momentum rise to the top.

Based on the market environment, we can also flip the scan on its head and filter for weakness.

Let’s dive in and take a look at some of the most important stocks from around the world.

Here’s this week’s list:

We begin today’s discussion with a special situation that took shape this week.

At the end of the day, what we’re trying to do here is create a universe of stocks that are experiencing bullish activity from investors who have better information than the rest of us.

Typically, this information comes to us in the form of SEC filings, options flow, or through congressional reporting. But that’s not always the case!

From the desk of Steven Strazza @Sstrazza and Ian Culley @Ianculley  

It finally happened…

The yield curve inverted for a brief moment as the 2-year yield rose above the 10-year earlier this week. 

But whether or not it inverted yet is beside the point. It’s been flattening for a long time, and that’s the direction we’re headed in. It's only a matter of time.

While media outlets and fearmongers will spin this development as an urgent warning of an impending bear market, here's what you need to know: Throughout history, equities have done well during and after inversions.

This commonly observed leading indicator has a tendency to precede major market tops by years, not months. In other words, there's still time. The average lead time is about 18 months after prior inversions. 

More importantly, when it comes to forecasting bear markets and recessions, many experts will argue that it is actually not the 2-year we should be focused on, but the 3-month yield. 

Something we’ve discussed a lot is the bullish information we receive when there is a multitude of buying by separate insiders in the same name.

From the desk of Steve Strazza @Sstrazza

Welcome to the 2 to 100 Club.

As many of you know, something we've been working on internally is using various bottom-up tools and scans to complement our top-down approach. It's really been working for us!

One way we're doing this is by identifying 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.

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

Revolution Medicines $RVMD director Thilo Schroeder continues to appear on our list with another Form 4 filing.

He’s reported four separate purchases over the trailing month for a combined total of over $10 million.

From the desk of Steven Strazza @Sstrazza and Ian Culley @IanCulley

Rates continue to move higher around the world as central banks do their best to combat inflation. 

As investors, our best course of action is to position ourselves in those areas that benefit most from rising rates.

Commodities and cyclical stocks immediately come to mind. But there are also specific currencies that tend to excel in rising rate environments.

Today, we'll discuss a handful of emerging-market currencies with heavy commodity exposure. 

We’ve been waiting on these currencies to catch higher and confirm the price action in commodities since last year… and it looks like it’s finally happening.

Let’s dive in.

First up is an overlay chart of the US 10-year yield and our equal-weight basket of EM commodity currencies:

The largest insider buy on today's list is a Form 4 filing by William Clay Ford Jr., the executive chair of Ford Motor $F, who reported a purchase of roughly $4.5 million.

Coliseum Capital Partners continues to build its position in GMS Inc $GMS, as it just filed its second Form 4 in the last week.

From the desk of Steve Strazza @Sstrazza

Welcome to our latest Minor Leaguers report.

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 $1B 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.

The way we did this is simple…

To make the cut for our revised Minor Leaguers list, a company must have a market cap between $1B and $4B.

From the desk of Steve Strazza @sstrazza

This is one of our favorite bottom-up scans: Follow the Flow. In this note, we simply create a universe of stocks that experienced the most unusual options activity — either bullish or bearish… but NOT both.

We utilize options experts, both internally and through our partnership with The TradeXchange.

Then, we dig through the level 2 details and do all the work upfront for our clients. Our goal is to isolate only those options market splashes that represent levered and high-conviction, directional bets.

We also weed out hedging activity and ensure there are no offsetting trades that either neutralize or cap the risk on these unusual options trades.

From the desk of Steve Strazza @Sstrazza

Our Top 10 Charts Report was just published.

In this weekly note, we highlight 10 of the most important charts or themes we're currently seeing in asset classes around the world.

Is There Enough in the Tank?

Pretty much everything in the world of energy has been on fire for the last quarter. Crude oil and energy stocks have been the stand-out performers this year as both have enjoyed a swift leg higher since early January. Despite the impressive price action, both are at logical levels to do some consolidating. Crude Oil and the Energy Sector SPDR (XLE) are challenging critical levels of overhead supply at former highs. Both of these areas have acted as resistance in the past, so it would not be unusual for sellers to show up once again. While the primary trends are still very much intact for energy stocks and futures, a breather here and some digestion of the recent gains would be constructive. The next key piece of information should come in the form of how that digestion looks. Do we correct through price, or time?