Last week, we identified a bullish momentum divergence in the commodities versus stocks ratio at a shelf of former lows.
The evidence suggests we're on the verge of a new era of commodity outperformance.
If we're right, it's time to prepare a list of our favorite setups to seize this opportunity.
We've already covered promising setups in uranium and solar.
Now, let's focus on oil and gas, and here's why:
First, crude oil, heating oil, and gasoline have been consolidating above a shelf of former highs for more than two years, and the risk is skewed in favor of the bulls.
Until the bears can resolve these consolidations to the downside, we want to continue betting these levels hold as support.
Our International Hall of Famers list is composed of the 100 largest US-listed international stocks, or ADRs.
We've also sprinkled in some of the largest ADRs from countries that did not make the market cap cut.
These stocks range from some well-known mega-cap multinationals such as Toyota Motor and Royal Dutch Shell to some large-cap global disruptors such as Sea Ltd and Shopify.
It's got all the big names and more–but only those that are based outside the US. You can find all the largest US stocks on our original Hall of Famers list.
The beauty of these scans is really in their simplicity.
We take the largest names each week and then apply technical filters in a way that the strongest stocks with the most momentum rise to the top.
Based on the market environment, we can also flip the scan on its head and filter for weakness.
Let's dive in and take a look at some of the most important stocks from around the world.
We've got Nvidia earnings after the bell this afternoon. The feeling I shared to my analysts today -- and they all agreed -- is that if Nvidia disappoints, the likely result will be a small speedbump for the overall stock market. But if investors cheer the Nvidia earnings results, then gas is going to get poured on this bull market.
The Russell 2000 Small Cap ETF $IWM does not have direct exposure to $NVDA, so our risks feel limited on the downside. However, in a resumption of the bull market, small caps have a good chance of ripping to and through new highs.