All Star Charts Premium Articles

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.

...

In true commodity supercycles, shiny yellow rocks outperform stocks.

Last week, we outlined why we thought buying gold and selling stocks was a good idea. If you haven't had a chance, you can check out that post.

But that's not it.

We've also been pounding the table on how bullish we are on the precious metal mining stocks. They're testing a key level of polarity relative to gold futures. 

This is the level where the miners begin to outperform gold.

We're also heading into the sweet spot for junior gold mining stocks based on seasonality. 

As more stocks, more sectors and more countries around the world start to participate in this bull market, any of the short sellers who overstayed their welcome are getting blown up.

Good.

This is a classic characteristic of healthy bull market environments. I would encourage you to go back and study every bull market ever. You'll find that investors who own stocks are much more profitable than those who are selling stocks.

It's just math.

Here's the thing about short sellers that I think gets forgotten. Short sellers are guaranteed future buyers. Longs are only promising to be future sellers. 

The thing is that when shorts are getting squeezed, these can become forced liquidations. And margin clerks don't use limit orders. They'll spray the market, and it will crush you if you're on the wrong side of that.

But if you're on the right side - pay day!

Here is a list of stocks where short sellers are the most vulnerable to get blown up:

The list begins with names that have a high short interest. Then we look at the ones where the number of shares short are exponentially greater...

From the Desk of Steve Strazza @Sstrazza.

Welcome back to Under the Hood, where we'll cover all the action for the two weeks ended January 3, 2025. 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.

There are so many new data sources available that all we need to do is organize and curate them in a way that shows us exactly what we want: a list of stocks that are seeing an unusual increase in investor interest.

Click here for a behind-the-scenes look at our process.

Whether we’re measuring increasing interest based on large institutional purchases, unusual options activity, or simply our proprietary lists of trending tickers, there’s...

Sports betting is so hot right now. 🥵

DraftKings $DKNG had one of its best earnings reactions ever on Friday, fueled by a blockbuster report.

The company acquired 3.5M new customers, increasing its total customer base by 42% Y/Y to 10.1M. 

That's a lot of gamblers!

As you can see, DraftKings gapped above a shelf of former highs from around this time last year. 

We think Friday's candlestick marked the beginning of a new leg higher for DKNG. 

If the biggest and best stock in the sports betting industry looks this good, imagine what its peers will do.

Genius Sports $GENI is the leading sports data, technology, and broadcast services provider. 

In 2021, they inked a deal with the NFL to distribute live data and statistics exclusively to sportsbooks and media companies.

This deal has been incredibly lucrative.

But that's not it. 

They have deals with sports leagues and media organizations worldwide, including the English Premier League, the NCAA, and ESPN.

In addition to the sweet fundamental tailwinds, the...

Don't miss the ASC Premium Mid-Month Strategy Session on Monday, February 17th, at 8 pm ET! 🚨

👉 Click here to register for the LIVE event.

This is the weekly post that aggregates all the charts we put together throughout the week and organizes them all into one, easy to flip through deck.

February is historically one of the best months of the year for commodities. This year is no different.

Coffee is like a freight train. It keeps chugging along to new all-time highs. 

Natural gas has rallied over 20% so far this month.

Dr. Copper is challenging a key level of interest and flirting with a multi-decade base breakout.

But what continues to stand out the most to us is the grain markets.

Last week, we outlined why we're buying...

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:

Yesterday we saw the Nasdaq100 close at new all-time highs, on an equally-weighted basis!

I keep being told that market breadth is weakening, mostly from people who haven't even bothered to count. 

So let me ask you...

Is the equally-weighted Nasdaq100 closing at the highest level in its entire history evidence of broadening strength, or a weakening market?

I'm old enough to remember when they were telling me that this was all just a "bear market rally" and that we shouldn't be buying stocks.

Then it was, "Only 6 stocks going up", so we shouldn't be buying stocks.

Now they're telling me that market breadth is weakening, when it's actually broadening, and that we shouldn't be buying stocks.

You know what we've been doing this entire bull market? We've been buying stocks, and laughing about it along the way.

You've had a front row seat to it all.

And this was just while it was mostly U.S. stocks doing well. Now we're seeing broadening participation all over the world, with areas like Latin America hitting new multi-month highs, Europe hitting all-time highs, and now Southeast Asia really getting going

Here is...

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.

Some of the best performers in recent decades – stocks like Priceline, Amazon, Netflix, Salesforce, and myriad others – would have been on this list at some point during their journey to becoming the market behemoths they are today.

When you look at the stocks in our table, you'll notice we're only focused on Technology and Growth industry groups such as Software, Semiconductors, Online...

I've been getting this question quite a bit lately: Does Breadth even matter?

And the answer is yes. It's a market of stocks.

Go back and study all the bull markets in history. You'll notice how as the bull market progresses, you get more and more stocks participating to the upside. You tend to see sector rotation and new leaders emerging. You also see expansion in participation across countries around the globe.

This is what is currently happening. It's all of the above.

In Bear markets, however, these things do not happen. It's actually the opposite. You see fewer and fewer stocks going up, while more and more stocks are breaking to new lows. The sector rotation turns into the last leaders catching down to the losers. And you see stock market indexes in countries all over the world falling in price, not rising. 

When you weigh all the evidence, it's quite obvious that we are currently in the first category, and certainly not in the second one.

How can market breadth be deteriorating, when participation just keeps expanding?

How can you tell me with a straight face that breadth is weakening, when the...