From the Desk of Steve Strazza @Sstrazza

Welcome to The 2 to 100 Club.

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.

I’ve been pounding the table on speculative growth.

And I’ve received a good deal of pushback on it. Some peers, customers, and even members of our analyst team don't love the idea.

But that’s ok. Recency bias is real. These have been the worst stocks in the market this cycle.

But let me bring you back to a time when they were the best…

It was early fall of 2020.

The flagship ARK fund had already tripled off the pandemic lows. It would double again from there.

2020 set a record for new IPO issuances, only to top it with another 1,000 new offerings in 2021.

Retail trading was experiencing a modern-day renaissance driven by young traders and hot stocks. 

Start-ups like Robinhood and eToro were thriving. Everyone was stuck at home, YOLO’ing to pass the time.

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. 

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:

It’s been a crazy two days.

The reaction to both the election and the FOMC was overwhelmingly positive for risk assets across the board.

A long list of stock market indexes and individual issues just had their best day since the pandemic lows almost 5 years ago.

NYSE new highs just hit its highest reading in years, telling us the rally is supported by the broadest level of participation this cycle.

The election ended up being the catalyst to break out prolonged ranges in things like regional banks, biotechs, speculative growth, industrial metals, and even bitcoin.

These groups are finally joining the bull market party, and they are kicking it off in a big way.

So, what’s the big takeaway from all this? 

The chart that illustrates it best is the Russell 2000 Micro-Cap Index $IWC:

From the Desk of Steve Strazza @Sstrazza

Welcome to The 2 to 100 Club.

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.

Happy election day, everybody!

I’m excited for tonight. Know why?

I am so ready to put this election behind us.

Last week, I did an interview with Nerd Wallet about investing around the election. You can read the article on their site. 

I brought a bunch of charts along for it so figured I’d share some with you.

As we prepare for the voting booths to close and brace for the market's reaction tonight, here are some things I’m thinking about.

I think the uptrends that are already in place, will remain in place. Maybe some post-election volatility will give us the opportunity to get into these trends at a discount.

With everyone trying to find a cute election trade, my plan is to keep doing what I always do.

Whether it is Trump or Harris come Tuesday night… or even some sort of contested, disaster scenario… I want to be positioned with the primary trend.

The best piece of advice for investors right now is that reactions to political events - like reactions to most events, tend to occur in the direction of the underlying trend.

In other words, once the election volatility comes and goes… I bet the same trends remain in place.

Things that have already been trending higher will probably keep heading higher.

And things that have been trending lower will probably keep falling.

Elections happen. Presidents come and go. But trends persist. 

One of the big trends we’ve been riding higher this year is the bull market in precious metals.

Let’s recap…

First, it was Gold:

From the desk of Steve Strazza @Sstrazza

Our Hall of Famers list is composed of the 150 largest US-based stocks.

These stocks range from the mega-cap growth behemoths like Apple and Microsoft – with market caps in excess of $2T – to some of the new-age large-cap disruptors such as Moderna, Square, and Snap.

It has all the big names and more.

It doesn’t include ADRs or any stock not domiciled in the US. But don’t worry; we developed a separate universe for that. Click here to check it out.

The Hall of Famers is simple.

We take our list of 150 names and then apply our technical filters so the strongest stocks with the most momentum rise to the top.

Let’s dive right in and check out what these big boys are up to.

Here’s this week’s list:

From the Desk of Steve Strazza @Sstrazza

Welcome to The Junior International Hall of Famers.

With the goal of finding more bullish setups, we have decided to expand one of our favorite scans and broaden our regular coverage of the largest US-listed international stocks, or ADRs.

This scan is composed of the next 100 largest stocks by market cap, those that come after the top 100 and are thus covered by the International Hall of Famers universe.

Many of these names will someday graduate and join our original International Hall Of Famers list. The idea here is to catch these big trends as early on as possible.

Let’s dive right in and check out what these future big boys are up to.

This is our Junior International Hall of Famers list:

From the Desk of Steve Strazza @Sstrazza

Welcome to The 2 to 100 Club.

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: