We're now over 2 years into a bull market, so you know what that means?
It means correlations have come off a lot.
Keep in mind that when volatility spikes, correlations among S&P500 components shoot up to one.
It seems like they all move together, either up or down, depending on how the day goes.
We saw that in 2022 and we most certainly saw that during Covid.
But now that we're 2 years into this bull market, correlations have come off so much that it is easier than ever to find BOTH winners and losers out there.
This is NOT an "everything moves together" market. It's actually the furthest thing from it.
Take a look at SharkNinja, for example, making new all-time highs again this month.
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.
The biotech market has a great divide between the haves and have-nots. Some stocks have experienced tremendous markup phases, while others can't seem to get out of the doghouse.
Today, we're covering a biotech stock that has rallied nearly 200% this year.
Despite this rally, the short sellers have continued to add to their positions and are close to carrying their largest short position ever.
With the stock coiling at a shelf of former highs from last summer, we're betting the short sellers are on the verge of unwinding their positions and sparking a short squeeze.
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It's no secret that we're in a bull market for precious metals.
We made the argument for a new secular uptrend for these shiny rocks in last week's Gold Rush video.
Why do we think this is the case?
Gold futures have been printing fresh all-time highs seemingly every day, and precious metals stocks have followed suit with new highs of their own.
When you go back and study the previous cycles you'll notice that every bull market is characterized by more and more stocks making new highs along with the underlying futures contracts.
So let's take a step back and look at some stocks that are making new highs.
Welcome back to Under the Hood, where we'll cover all the action for the two weeks ended August 30, 2024. This report is published bi-weekly, in rotation with The Minor Leaguers.
What we do here is analyze the most popular stocks during the week and find opportunities to either join in and ride these momentum names higher, or fade the crowd and bet against them.
We use a variety of sources to generate the list of most popular names.
There are so many new data sources available that all we need to do is organize and curate them in a way that shows us exactly what we want: a list of stocks that are seeing an unusual increase in investor interest.
The current market environment is creating a unique opportunity for bonds.
With the charts signaling strong potential for gains into year-end, now is the moment to take action and add some bond exposure to your portfolio.
With some big reversals underway, the timing couldn’t be better to capitalize on these new trends.
Not only are we seeing a growing list of base breakouts for treasuries, corporate bonds, and bond ETFs, but the intermarket landscape is turning increasingly favorable for fixed income in general.
Let’s jump in and discuss why we’re buying bonds here and how we want to express this thesis.
The fed is giving us a clear indication these days that we’ve seen the peak in interest rates for now. The odds of a rate cut at the September meeting in a few weeks are at 67.5%.