[Premium] 2-to-100 Club (10-07-2020)

From the desk of Steve Strazza @Sstrazza

Welcome to the 2-to-100 club.

Something we've been working on internally this year is using various bottoms-up tools and scans to complement our top-down approach. One way we’re doing this is by identifying 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 and into mid-cap status (over $2B) then they enter our radar.

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 – from the likes of Priceline, Amazon, Netflix, and Salesforce, to a myriad of others… they all would have been on this list at some point.

When you look at the stocks in our table you will notice we are only focused on technology and growth industry groups such as Software, Semiconductors, Online Retail, Solar, and more.

Then as any good technician, we are filtering the list by those names that are closest to 52-week highs. This allows the cream of these strongest groups to rise to the top and makes our job easy to identify technical breakouts in some of these top-performing stocks.

Here is this week’s list of all the names that are currently within 5% of their 52-week high. There is just over 60 of them.

Again, it includes both Mid-Cap and Large-Cap stocks. Mids are classified as anything trading with a market capitalization above $2B but below $10B. The Mid-Caps are all shaded green in the Market Cap column while those approaching $30B become a deeper blue as they get closer on their journey to becoming a “blue-chip,” or $100B company.

Our internal list includes over 300 names and we also add a little cushion and expand our market cap criteria as names close to $2 or $30 Billion are likely to come on and off the list. We want to keep them on our radar so we can catch breakouts in these stocks as well.

Let's dive into this week's best setups.