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2 to 100 Club

2 to 100 Club: Special Edition

January 15, 2021

From the desk of Steve Strazza @Sstrazza

Consider this a special follow-up edition to our most recent 2-to-100 column, published earlier this week.

We update our 2-to-100 club universe every quarter as stocks will come on and off of the list as their market cap fluctuates above and below our criteria of about 2 to 30B.

There are also newly public stocks that need to be added and changes based on our technical criteria, among other things.

A lot of stocks grew above the $30B mark this year and unfortunately left the 2-to-100 club. On the other hand, there weren't too many that left due to falling below $2B.

This makes sense as all the stocks in the club are from tech/growth industries, many of which performed incredibly well in 2020.

There was also a good deal of new additions from IPOs which is also no surprise as most of the new issuances these days are tech companies.

The last thing I noticed - which is what this post...

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Stocks Are Historically Expensive. So What?

January 14, 2021

In case you missed it this week, our team just got a whole lot better. Willie Delwiche is officially part of the Allstarcharts Team. We couldn't be more excited to have someone with his experience adding to the conversations we're already having every day.

To no surprise to any of us, Willie is already hitting the ground running with some excellent perspective on current market sentiment, valuations and breadth.

Here's what he had to say today,

Stocks are historically expensive, but this is offset by ample liquidity being provided via monetary policy (and to a lesser extent the hope of additional fiscal stimulus). Investor sentiment is heavily tilted toward optimism and complacency. This becomes a more acute concern when market momentum is faltering and/or rally participation is narrowing. That is not currently the case, as an increasing number of markets have broken out of bear markets that stretch back to 2018 or earlier"

...

The Stealth Correction

January 13, 2021

As we get into 2021, the same question keeps coming, "JC, when are we going to see a correction in the market?"

While it is true that some stocks have gone up, and others have gone up a lot in recent months, the biggest stocks of them all have not.

Google, Apple, Microsoft and Amazon are the 4 biggest companies in the world. Throw in fellow behemoths Facebook and Alibaba, and now we're pushing $8 Trillion in market cap. That's big time money.

And you know what those stocks have done since September 2nd?

Nothing.

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2 to 100 Club

[Premium] 2 to 100 Club (01-13-2021)

January 13, 2021

From the desk of Steve Strazza @Sstrazza

Welcome to the 2 to 100 Club.

Something we’ve been working on internally this year is using various bottoms-up tools and scans to complement our top-down approach. One way we’re doing this is by identifying 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, and Salesforce, to a myriad of others… all 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 will notice we are only...

[Premium] Q4 Playbook

January 13, 2021

As we progress into Q4 of Fiscal Year 2020-2021, this playbook outlines our thoughts on every asset class and our plan to profit.

This playbook will cover our macro view, touching on Equities, Commodities, Currencies, and Rates, as well as outline our views on the major nifty indices and the sector/thematic indices.

We also cover individual stocks we want to be buying to take advantage of the themes discussed in the playbook.

[Options] Buying the Dip in Synaptics

January 13, 2021

Synaptics $SYNA has been on a heck of run over the past several weeks as it recently thrust out of a nearly 5 month consolidation. Now resting just below all time highs, we're thinking there's another run higher in store. And today's trading action is just the kind of pullback I was looking for in order to get involved.

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Under The Hood (01-08-2021)

January 12, 2021

From the desk of Steve Strazza @Sstrazza.

Welcome back to our “latest Under The Hood” column for the week ending January 8, 2021. As a reminder, this column will be published bi-weekly moving forward, and rotated on-and-off with our new Minor Leaguers column.

In this column, we 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.

Whether we’re measuring increasing interest based on large institutional purchases, unusual options activity, or simply our proprietary lists of trending tickers… there is a lot of overlap.

The bottom line is there are a million ways to skin this cat. Relying on our entire arsenal of data...

The Josh & JC Show: Market's Biggest Trends

January 12, 2021

We're back this month with another edition of the Josh & JC show.

This is where I sit down with my boy Josh Brown and talk about the most important Monthly Charts I see around the world.

I love doing this monthly show. Josh and I have been good friends for the better part of the past 2 decades. He knows me really well by now, and I think I've got a pretty good handle on him too, although he certainly finds ways to surprise me quite often.

On this month's show, we take a look at Financials potentially breaking out. One of the leaders is Goldman Sachs, as $GS is now back above its 2007 highs. Meanwhile, Consumer Discretionary is breaking out to new all-time highs relative to Consumer Staples, which is consistent with higher stock prices. But that doesn't mean that Staples can't do well on an absolute basis. And finally, Commodities are breaking out. Crude Oil is back above its 2016 lows. And with all of this bullish talk, what's it going to take to position ourselves more defensively? I lay out the 4 most important signals that we're watching.

Here's the video in full:

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[Premium] Q1 2021 Playbook

January 12, 2021

This is our ASC Research Q1 2021 Playbook.

The first section dives deep into the US Stock Market and Market breadth, then we discuss the International Markets and specific Factors around the world. Next we go into U.S. Sectors and the best looking Industry Groups. In the second half of the report, we dive into the FICC space (Fixed Income, Commodities & Currencies) and their Intermarket Relationships. Finally we finish up with Cryptos, Options and overall Market Sentiment.

You can skip right to the trade ideas here if you'd like, or give the full report a read!