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A Hedge For Our Coffee Addiction

August 30, 2024

If you're like me, you probably spend too much money on coffee every morning.

And that's not likely to change... but that's okay!

We can profit from an upside move in the commodity and hedge our exposure.

We've had tremendous success trading Cocoa futures in the last several years. 

We're also close to buying Cotton futures as they look to trap the bears below a key polarity zone.

There's a trend here: soft commodities keep rewarding us for owning them.

We think Coffee is next.

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Junior International Hall of Famers (08-30-2024)

August 30, 2024

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:

 

Click table to enlarge view

And here’s how we arrived at it…

We removed laggards which are down 5% or more relative to the ACWI Ex. U.S. Index $ACWX over the trailing month.

Then we sorted...

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International Hall of Famers (08-30-2024)

August 30, 2024

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...

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This REIT Is Ready To Squeeze

August 29, 2024

Investors continue to be rewarded for owning Real Estate stocks.

Over 90% of Real Estate stocks in the S&P 500 are above their 50-day and 200-day moving averages.

Earlier this month, we wrote about the best setups in the Real Estate Sector, and 9 out of the 10 trade ideas have been profitable.

The market's message could not be clearer... buy more real estate!

Because of this, we were extra excited about a new name on our Freshly Squeezed list this week.

Short sellers have piled into Douglas Emmett $DEI, a $2.7B Office REIT company, and we're betting they're about to be forced to unwind their positions, causing an epic squeeze.

Before we get into it, let's talk about what we're doing here.

Our scan is quite simple. It is designed to identify stocks with the most aggressive short positions.

When a stock is shorted, it means incremental buyers are waiting in the wings to close out their bearish bets.

We love this, as new buyers are the one true catalyst for higher prices.

When shorts are proven wrong, they become buyers of the stock. In...

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Berkshire Hits $1 Trillion Valuation

August 29, 2024

I just want to give Warren Buffett a huge shoutout.

Officially, Berkshire Hathaway is now worth over $1 Trillion.

The only companies that are still worth more than Berkshire right now are Apple, Microsoft, Alphabet, Meta, Amazon and Nvidia.

Check out our LIVE Nvidia Earnings Reaction Replay here.

But that's it. Berkshire is officially the 7th largest company at over $1 Trillion in valuation.

Here's how the market-cap of Berkshire has grown over the years.

You can see the 10X return over the past 15 years or so since the Great Financial Crisis.

But why is this?

What's in Berkshire that's so special?

It's a ton of Financials and Industrials.

In fact, Berkshire Hathaway is...

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Finding The Next Nvidia

August 28, 2024

We just saw the most important company in the world drop what is arguably the most important earnings release in market history.

And right after the release, it was a complete nothing burger.

I said it before and I'll say it again. That's the best case scenario for investors. And it paid to sell into the hype.

Here is a LIVE video we put together today discussing the importance of this release, and more importantly talking what we're doing about it!

The answer? We're zigging while everyone else is zagging.

We were coming in selling into the hype. Here was the 14-point expectation that the market was pricing in.

And after the release, it has remained well within that range.

Our main focus has been on finding the NEXT nvidia.

Here is the 2-to-100 Club Special to join us in consistently looking for the next Nvidia every single week.

These are very specifically, the...

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2 to 100 Club (08-28-2024)

August 28, 2024

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...

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Gold Shines Brighter Than Commodities

August 27, 2024

Gold has not only been shining in absolute terms but is also dramatically outperforming the broader commodity complex.

While energy chops around in a multi-year range and cattle carve out a distribution pattern, the glittering ore refuses to quit printing new all-time highs.

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The Minor Leaguers (08-26-2024)

August 26, 2024

From the Desk of Steve Strazza @Sstrazza

Welcome to The Minor Leaguers.

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.

And it doesn't have to be a Russell component — it can be any US-listed equity. With participation expanding around the globe, we want all those ADRs in our universe.

The same price and liquidity filters are applied. Then, as always, we sort by proximity to new highs in order...

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The Hall of Famers (08-23-2024)

August 24, 2024

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:

*Click table to enlarge view

We filter out any laggards that are down -5% or more relative to the S&P 500 over the trailing month.

Then, we sort the...

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Cotton Pickin' Time

August 23, 2024

It has paid to pick our spots wisely in the commodities complex as it's been a very bifurcated asset class this cycle.

Live and Feeder Cattle are carving out distribution patterns.

Energy has been a rangebound mess.

Meanwhile, the relative strength has been in the soft commodities and precious metals.

Gold recently put the finishing touches on a multi-decade accumulation pattern.

Cocoa has resolved a 12-year base and rallied over 400% to new all-time highs.

Coffee is flirting with new multi-decade highs after completing a tactical reversal pattern.

And we're betting that Cotton will participate to the upside with the rest of the soft complex soon. The soft and fluffy commodity is on the verge of trapping the bears below a key level of polarity.

We want to continue leaning into the relative strength in soft commodities.