We love our bottoms-up scans here at All Star Charts. We tend to get really creative when making new universes as we want to be sure they will deliver us the best opportunities the market has to offer.
However, when it comes to this one, it couldn't be any simpler!
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 stocks.
Welcome to TheJunior Hall of Famers.
This scan is composed of the next 150 largest stocks by market cap, those that come after the top 150 and are thus covered by the Hall of Famers universe. Many of these names will someday graduate and join our original Hall Of Famers list. The idea here is to catch these big trends as early on as possible.
There is no need to overcomplicate things. Market cap is a quality filter at the end of the day. It only grows if price is rising. That's good enough for us.
If I learn something from someone and I quote it, I always do my best to also mention who I learned that from.
When someone on my team makes a good call, or builds something really valuable, I'm the first one who stands up to give them credit for it.
But this one is mine. I'll take the credit for this list.
Here's the thing though. While I did think building this would be a good idea, it has exceeded expectations across the board.
I may have made a good call. But I'm still a dummy for not realizing just how valuable this would end up being for us.
The market is humbling that way.
Without any further ado, let me present you with the All Star Charts Hall of Famers.
These are the largest 150 companies in America by market-cap. These are the stocks that are driving returns. These are the names that need to do well if you want your favorite indexes to do well too,
You guys know how much I appreciate the value we get from the Dow Jones Industrial Average.
It has been over 1,600 days since Crude Oil futures traded below zero in 2020, which preceded one of its best 2-year bull markets in history.
Since the peak in early 2022, energy has been a tough trade for those with trend-following strategies and a favorable one for mean-reversion strategies.
Crude Oil futures are at the lower bound of a multi-year range, and the Energy Sector SPDR $XLE has the fewest percent of stocks above their 200-day moving average out of all 11 sectors.
Energy has been a laggard recently.
However, it's important to remember where energy has come from. Crude Oil futures went from below 0 to 130 in less than two years, and the XLE is the second best-performing sector since Covid, lagging only Technology $XLK:
We just got done with our Fall Portfolio Accelerator in Chicago.
It went even better than expected.
I think we're going to make so much money from the ideas and strategies we discussed over the past two days.
It's not even fair to have so many smart traders and investors in one room. Not to mention, we also got to go to the Cubs game last night, the CBOT on Wednesday and a tour of the Pat Tillman Foundation as well.
All around I think it was a huge win for all of us. Our entire team got to fly in from all over the world to spend some time in Chicago, many of them for the first time.
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.
Dividend Aristocrats are easily some of the most desirable investments on Wall Street. These are the names that have increased dividends for at least 25 years, providing steadily increasing income to long-term-minded shareholders.
As you can imagine, the companies making up this prestigious list are some of the most recognizable brands in the world. Coca-Cola, Walmart, and Johnson & Johnson are just a few of the household names making the cut.
Here at All Star Charts, we like to stay ahead of the curve. That's why we're turning our attention to the future aristocrats. In an effort to seek out the next generation of the cream-of-the-crop dividend plays, we're curating a list of stocks that have raised their payouts every year for five to nine years.
We call them the Young Aristocrats, and the idea is that these are "stocks that pay you to make money." Imagine if years of consistent dividend growth and high momentum and relative strength had a baby, leaving you with the best of the emerging dividend giants that are outperforming the averages.
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.
But not because I have to. It's because I want to.
There's a difference.
But I'm taking a break out here in Newport Beach, Ca for a few days, at what has become, the #1 Conference in all of Finance.
It's not even close.
I couldn't tell you what the 2nd best was. That's how dominant this is.
Sunday afternoon I walked up to the booth in Huntington Beach to get my badge and bag of goodies and they had pins representing whether it was your 1st year at FuturePtoof, your 2nd year attending or if it was your 3rd.
I smiled and said, "This is my 3rd year here", and she jumped up with joy and put extra flair on my conference name badge.
I feel like Jennifer Aniston in Office Space with all my flair on right now.
I laugh because of course it's my 3rd year. I want to support my friends.
Even if there was no one here, I would still be here.
But do you know how happy it makes me to see my boys kicking everyone's ass?
Josh Brown and the rest of the Ritholtz Wealth Management team is absolutely crushing it.