President-elect Donald Trump rang the bell at the New York Stock Exchange this week, and it was reminiscent of the times when Ronald Reagan and George W. Bush went to the NYSE years ago.
The infamous Reagan quote, "We're going to turn the bull loose," immediately came to mind.
Considering that, it seems appropriate to talk about bulls today because of their positive correlation to economic growth.
Live cattle futures and bond yields have danced together for decades:
As you can see, cattle futures and bond yields are structurally similar but sometimes diverge from one another. In the lower pane, we've included the 200-day rolling correlation to highlight the past (and current) divergences in price.
The biggest problem with correlation analysis is that it doesn't tell us which direction the lines will likely go next.
However, the primary trends have been higher since the 2020 low, and the odds favor that the primary uptrends will eventually reassert themselves.
And we think that's currently underway, with live cattle futures closing this week at the highest price in history.
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.
Here’s this week’s list:
*Click table to enlarge view
We filter out any laggards that are down -5% or more relative to the S&P 500 over the trailing month.
We'll be streaming LIVE today on Stock Market TV with The Best Morning Show in Finance. This is where we talk about which stocks are moving, the major themes in the market, and what we're doing about it.
Today's guest is our in-house Quantitative Strategist Grant Hawkridge.
Grant joins us from the other side of the world in Australia. So let's all give him a warm U.S. welcome!
Below is the 10th ASC Mastermind Course. In this video, I discuss how to profit from short squeezes.
I love short squeezes. I love how they happen, I love how they're somewhat misunderstood, and most importantly, I love to profit from them.
That's why we created an entire scan to identify stocks with potential short squeezes.
Most people think looking for a short squeeze is as simple as looking for stocks with the highest short interest. But we know there's a little more nuance than that. In reality, there are multiple components to a short squeeze.
In this video, I review the three parts of a short squeeze (why they happen), how we find these stocks, and how we analyze them to ultimately profit.
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.
Some of the best performers in recent decades – stocks like Priceline, Amazon, Netflix, Salesforce, and myriad others – would have been on this list at some point during their journey to becoming the market behemoths they are today.
When you look at the stocks in our table, you'll notice we're only focused on Technology and Growth industry groups such as Software, Semiconductors, Online...
Below is the 9th ASC Mastermind Course. In this video, I discuss my process for finding the best small-caps.
If you don't pay attention to small-caps, you should start.
At All Star Charts, we look at small-caps for two reasons: they give us valuable information about the market, and they give us many trade ideas.
Small-caps might have a reputation for underperforming large-caps at the index level (at least, for most of the last 15 years), but at the individual stock level, this is where the biggest winners are often found. After all, every large-cap stock was once a small-cap.
The challenge in trading small-caps however, is that there's so many of them. So we've come up with a number of scans specifically designed to help us identify the small-caps in the best position to pop. Here's how we do it.
Several months ago, we discussed the blowout momentum readings for the junior gold and silver miners.
These momentum thrusts often initiate the beginning of significant trend reversals, not the end.
Since then, the price action has been lackluster. However, our technical analysis suggests that the bulls are on the cusp of stepping in and resuming the primary uptrend.
Let's delve into the charts and how we plan to profit from them.
Silver Miners $SIL are printing fresh 52-week highs relative to silver futures: