Below is the 6th ASC Mastermind Lab Course. These are special videos that will be made available throughout the duration of the 12-week course featuring conversations with professionals from across Wall Street discussing topics in their expertise.
I wasn't ready to move on from intermarket analysis just yet. It's too important. So I called up Jason Perz, the newest All Star Charts analyst, and someone who is an expert in the relationship between bonds, commodities, and currencies.
Jason and I discussed these relationships at length, how these markets have reacted to major historical events, and how a move in one market could impact another.
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.
We've had some great trades come out of this small-cap-focused column since we launched it back in 2020 and started rotating it with our flagship bottom-up scan, Under the Hood.
For the first year or so, we focused only on Russell 2000 stocks with a market cap between $1 and $2B.
That was fun, but we wanted to branch out a bit and allow some new stocks to find their way onto our list.
We expanded our universe to include some mid-caps.
Nowadays, to make the cut for our Minor Leaguers list, a company must have a market cap between $1 and $4B.
Most of us somehow know people who still consume basic cable television news.
It's like watching someone who's obese shop at the grocery store, buying all their cereal and "fat free" cookies. It's terrible.
It's like seeing the alcoholic walk into the bar at noon and the bartender automatically knows to serve him the regular 2 shots and a beer.
The cable news people are the bartenders giving you the poison that you desire, at the worst possible time that they could possibly serve it to you.
It's like walking into a casino in Reno, NV to see people who have no money, are in terrible health, and have no business being inside a casino, sitting there all afternoon putting money into slot machines.
This is what the sick individuals who still consume basic cable news are doing to themselves.
It's sad to watch them struggle so much and slowly kill themselves. You may not see it easily on the outside, but their souls are dying or already dead on the inside.
The good news is there are fewer and fewer of these suffering individuals left who are still poisoning themselves in these antiquated ways.
You're overthinking the whole dollar and oil connection.
As a trader, I love finding intermarket relationships to guide the way I look at markets. While those links matter, I have to remember that they aren’t set in stone. They change as the world changes.
War and energy production can really shake up these correlations.
In early 2022, the correlation between the dollar and oil hit a 20-year high.