During bull markets, the leading stocks tend to remain leaders longer than most investors can fathom.
That's just how markets work.
This cycle Nvidia has been a big winner. It was one of the first to break out to new all-time highs. And it's been one of the best performers, despite its massive $1.2 Trillion market cap.
That's the exact definition of a market leader. And our bet is that it continues to hold that title:
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.
To make the cut for our Minor Leaguers list now, a company must have a market cap between $1 and $4B.
One of the things we like to do repeatedly at All Star Charts is position ourselves in leading stocks in leading sectors. Just writing that out may sound completely obvious to some, but too often I see traders trying to get cute to find the "undiscovered gems" that will be the next big winner.
Call me old-fashioned, but I prefer getting involved in stocks that are already doing what we want them to do, and I want to let inertia take over.
Today's trade in Southern Copper is one in which both inertia and "magnets" may play a part in delivering gains to us.
As we always like to say around here, it's a market of stocks.
When we refer to "the stock market", let's remember that there are 500, or so, stocks in the S&P500. There are 3000 stocks in the Russell3000.
It's a market of stocks.
That's how we knew the market started to improve 18 months ago, because the list of stocks making new lows peaked in June 2022.
Even in the most recent correction in Q3 this year, the new lows list peaked on October 3rd.
On the other side of that formula is the list of stocks making new highs.
The list of stocks on the NYSE making new highs is the longest its been in over 30 months.
The list of stocks making new highs keeps getting longer. The list of sectors and industry groups making new highs keeps getting longer. The list of countries around the world making new highs keeps getting longer.
It's almost as if the market is getting stronger, not weaker.
And when you zoom out, you can see that this structural bull market remains intact.
