The Hall of Famers (05-06-2022)

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 which you can check out here.

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:

And here’s how we arrived at it:

• We filtered out any stocks that are below their May 10, 2021, high, which is when new 52-week highs peaked for the S&P 500.
• We removed laggards which are down 5% or more relative to the S&P 500 over the trailing month.
• We sorted the remaining names by their proximity to new 52-week highs.

We know these are some of the market’s biggest leaders. Considering most large-caps peaked in early May 2021, those that have continued to grind higher is where we find the relative strength. 

That's what we usually do. But, to the bulls' distress, leaders are few and far between these days. The market remains a mess, as more and more risk assets are coming under pressure.

So, we’re going to shake things up this week and sort our universe for new lows instead of new highs.

With volatility really picking up lately, it’s time we identify the weakest stocks on our expanded Hall of Famers list and outline some short setups.

We're not looking for relative strength. We're looking for relative weakness.