From the Desk of Steve Strazza @Sstrazza.

Welcome back to Under the Hood, where we'll cover all the action for the two weeks ended May 9, 2025. 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.

Click here for a behind-the-scenes look at our process.

Today, I’m headed to New Orleans for our tri-annual Portfolio Accelerator event.

There’s always been something about this city that resonates with me—not just the food, the music, or the unmistakable soul of the French Quarter—but its relationship with risk.

New Orleans understands risk. And more importantly, it understands how to manage it.

From levees and dikes to advanced pumping and drainage systems, the city doesn’t ignore the dangers it faces. It builds around them. It plans for them. It respects them. Just like we do as traders.

That’s part of why this city is such an inspiring backdrop for a room full of portfolio-focused minds. Like New Orleans, we try to hedge our exposure. We use long options, smart position sizing, and strategic overlays to reduce our downside risk. And like the levees, those hedges give us peace of mind—until the water starts to rise.

Because here’s the truth: sometimes, Mother Nature throws a punch you just can’t fully dodge. In markets, that’s when volatility explodes and our carefully calibrated short-vol trades face the full wrath of a panicked tape. Sure, we might technically...

I just checked the app, and my car is rounding the corner. 

He's picking me up for a rocket ship ride to the moon!

Everything in markets is connected. Not in theory—in function.

Think of the market like a human body. Your brain is at the center—processing data, storing memories, sending signals. But none of that matters unless the message reaches your limbs. That’s what nerves are for. They carry the signal. They make the body move.

Without that connection, you become rigid. Movement slows. Response times lag. Eventually, the whole system breaks down.

Markets work the same way and the bond market is the brain.

It holds the signal. It processes information about liquidity, risk, and expectations. The shape of the yield curve can tell you whether credit is expanding or contracting. Whether investors are optimistic or defensive. Whether the economy is warming up—or starting to overheat.

The bond market doesn’t just exist alongside stocks and commodities. It speaks to them. It sets the tone. It sends the signal.

If there’s enough liquidity, risk assets rally. Stocks rise and credit flows.

That’s a healthy system.

Too much liquidity?

In today’s Daily Digest, we’ll review the following:

1. No new trades today.
2. Adjustment to XRT position.
3. Closed IGV position.
4. Current status of open campaigns.
5. Volatility Snapshot.

Let’s dig in!

Miners are leading the charge in 2025, and the data backs it up

It’s not even close...

In a year when most sectors are struggling to stay afloat, precious metals and the miners are surging higher.

Short sellers are getting squeezed, and you can see it.

These investors have been caught offside, and they're being forced to liquidate their short positions.

They're suffering right now, and that's precisely when we want to come in with the Freshly Squeezed strategy.

Here's our latest Freshly Squeezed table: 

As you can see, Hims & Hers Health $HIMS, Sezzle $SEZL, and Porch Group $PRCH are at the top of the scan. 

Over the last 10 trading sessions, they've rallied 85%, 81.6%, and 74.5%, respectively.

We also have tables sorted by short interest and days-to-cover.

Now, let's talk about today's setup and why we think the short sellers are about to get their faces ripped off.

First, here's some context 👇

Sezzle $SEZL is an emerging "buy now, pay later" platform based in...

I’m always thinking about where the next big winners will come from.

Who will be the secular leaders of tomorrow?

What will be the next mega trend?

Who has the scale and the reach to dominate an industry?

What are the big ecosystem plays of the future?

But, I’m not only thinking about the fundamentals. It has to be confirmed by the technicals.

I love a good growth story as much as anyone, but I’m not going to fly blind with it.

One thing I know about stocks like the Magnificent Seven is they didn’t get to their size by accident.

The best stocks consistently outperform the overall market. That's what makes them the best!

So, I’ve learned to look out for this kind of thing. I never want to miss these trends.

The...

This is the weekly post that aggregates all the charts we put together throughout the week and organizes them all into one, easy to flip through deck.

More and more risk-on areas of the market are perking up with every passing day.

We’ve watched risk-appetite steal the show overseas in recent weeks, and now we’re seeing it stateside in US markets.

Small caps have outperformed off the April lows.

Speculative growth and ARK stocks have outperformed off the April lows.

Tech has led. Discretionary has led. Growth has led. High beta has led. 

All of this leadership boils down to the same thing.

Investors are embracing risk at an increasing rate. They want more exposure to the riskiest stocks and assets around the world, not less.

We just talked about this at our live event yesterday. We’re listening to the market and getting more aggressive on the long side.

When we last checked in, Crude Oil futures were falling apart as they sliced through significant levels of support like butter. 

The breakdown wasn’t subtle. It was decisive and came alongside broad weakness in the entire commodity complex.

Now, the carnage is spreading.

This week, it’s not just energy commodities that are under pressure...

It’s also the stocks tied to them.

This ratio ($RSPG / $RSP) has been treading water in a sideways range for over two years. 

It has bounced from the same support level multiple times, but that level is now under serious threat. 

We’ve got a massive topping pattern on our hands. It's rounded, heavy, and on the verge of a confirmed breakdown.

One more leg lower, and Energy’s former leadership story gets completely erased.

But that’s just the beginning…