Years ago my friend Howard Lindzon calls me and says, "JC we need to find the next $100 Billion company".

And of course I respond with, "Hell yea we do!"

"But wait. How do we do that?"

He laughed and told me to get with my team of analysts and figure it out.

So we did.

We reversed engineered what it would take for a company to be able to scale to $100 Billion in market capitalization.

From the Desk of Steve Strazza @Sstrazza

Welcome to The 2 to 100 Club.

As most of you know, we use various bottom-up tools and scans to complement our top-down approach.

It's really been working for us!

One way we're doing this is by identifying 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.

I received a well-meaning question from one of our clients today regarding an open position.

This client missed getting into the trade a couple of months ago.

Paraphrasing her question, she asked, “Since the stock is still above your stop loss level, would it make sense to buy the dip here, and/or would you add to your position here?”

Again, it's a well-meaning question – one I’m sure we all often wrestle with.

The problem, however, is that the position isn’t acting well. It’s a longer-term trade for us and still has a ways to go until options expiration, but the stock is currently trading well below the level at which we first got in.

In the chart below, you can see where we entered at the purple circle:

Consumer Discretionary stocks are on our radar. And for today's trade, we're going abroad and finding a stock that has both a great setup and is also starting to become a fashion "story" here in the U.S.

Just about anyone I've talked to about sneakers recently has mentioned this brand. It is quickly becoming a favorite. I don't currently own a pair, but if this trade pays, then perhaps I'll go buy a pair with my profits :)

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

1. New position in IBB.
2. No adjustments are needed today.
3. No exits since the last report.
4. Current status of open campaigns.

Let’s dig in!

From the Desk of Steve Strazza and Alfonso Depablos

The most significant insider buy on today's list comes via a Form 4 filing by Norfolk Southern Corporation $NSC director Sameh Fahmi.

Fahmi reported the acquisition of 2,000 shares of NSC, equivalent to $444,355.

From the Desk of Ian Culley @IanCulley

The US Dollar Index $DXY is violating its year-to-date trendline.

Is this it? Will the dollar finally follow the breakdowns in crude oil and interest rates?

The forex markets say, “Not so fast…”

Following yesterday’s breakout, the British pound is slipping back into the box as the greenback digs in its heels:

Fading the failed GBP/USD breakout earlier this spring proved rewarding. If you’re feeling spicy, you can take another shot at a mean reversion toward 1.25 – but only if the pound is trading below 1.2750.

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

1. No new positions today.
2. Adjustment to XLV position.
3. No exits since the last report.
4. Current status of open campaigns.

Let’s dig in!

From the Desk of Steve Strazza and Alfonso Depablos

The most significant insider buy on today's list comes via a Form 4 filing by the founder and CEO of Life Time Group Holdings Inc $LTH, Bahram Akradi.

Akradi bought 39,000 shares of LTH, equivalent to $653,507.

Next week marks the 2-year anniversary of this Bull Market for stocks.

As we've mentioned many times, the S&P500 didn't bottom out until October of 2022. But it was already a bull market at that point.

The bottom for the prior bear market was in June of 2022. That's when the majority of stocks bottomed.

By the time the S&P500 hit its final low in October, there weren't many stocks at all left going down. Most of them had already been making higher lows and higher highs.

Coming into this year, we made our list of the most important groups of stocks that were already exceeding the prior cycle's highs.

The thought process was that if these groups were above their late 2021-early 2022 highs, then any correction in stocks, whether through time or through price, would be just that - only a correction, but within the context of an ongoing bull market.

We called them our "Fab 5".

This is the video recording of our June 3rd Monthly Charts Live Strategy Session