The Minor Leaguers (03-01-2021)

From the desk of Steve Strazza @Sstrazza

In a further effort to identify individual equities that fit within our larger Macro thesis, we recently rolled out our latest bottoms-up scan: "The Minor Leaguers."

We write a post every other week where we outline some of our favorite setups from the watchlist.

We've already had some great trades from this universe and couldn't be happier about the early feedback.

Moving forward, we'll be rotating this column with "Under The Hood" each week.

In order to make it onto our Minor League list, you must have a market cap between $1 and $2B. There are also price and liquidity filters.

Then, we simply sort the stocks by their percentage from new highs. Easy done.

And what better time than now to launch a small-cap focused column!? We've seen very strong evidence of a structural rotation down the market cap scale, suggesting a new period of outperformance from small-caps in the coming months and quarters.

This column is a great way to take advantage of that trend. Let's dive right in!

Here’s this week’s table. Considering the swift rally back to fresh record highs for small-cap stocks over the past year, we’ve sorted it by proximity to all-time highs...

All of the names above are either trading at or within about 4% of highs.

Now let's dive in and look at the most favorable bullish setups we could find within our universe of the strongest small-caps.