November marks the beginning of the best 3-month period of the year for stocks and a brand-new NBA season. Moreover, the sportsbooks have priced in my local OKC Thunder as the Western Conference champions.
It's a fantastic time to be alive.
Now is also a great time to take a step back and assess the underlying trends.
Earlier this year, we outlined our Fab 5 Charts for a 2024 equity bull market.
One of the 5 key groups we selected was homebuilders, which have been on an absolute tear:
If you're living on this planet, credit is everything—it shapes economies and tells us whether we’re in a "risk-on" or "risk-off" environment.
And there's no better indicator of investor sentiment than the bond market.
With over $140 trillion traded daily, bonds are the largest asset class in the world, spanning all around the globe, from retail investors to governments.
One way we use bonds for information is by analyzing credit spreads as a signal for stress in the market.
Right now, credit spreads are not warning of elevated risk, they are doing just the opposite. Giving bulls the green light.
Credit spreads are tightening and hitting multi-year highs when comparing junk bonds to treasury bonds.
Our Hall of Famers list is composed of the 150 largest US-based stocks.
These stocks range from the mega-cap growth behemoths like Apple and Microsoft – with market caps in excess of $2T – to some of the new-age large-cap disruptors such as Moderna, Square, and Snap.
It has all the big names and more.
It doesn’t include ADRs or any stock not domiciled in the US. But don’t worry; we developed a separate universe for that. Click here to check it out.
The Hall of Famers is simple.
We take our list of 150 names and then apply our technical filters so the strongest stocks with the most momentum rise to the top.
Let’s dive right in and check out what these big boys are up to.
Welcome to TheJunior International Hall of Famers.
With the goal of finding more bullish setups, we have decided to expand one of our favorite scans and broaden our regular coverage of the largest US-listed international stocks, or ADRs.
This scan is composed of the next 100 largest stocks by market cap, those that come after the top 100 and are thus covered by the International Hall of Famers universe.
Many of these names will someday graduate and join our original International Hall Of Famers list. The idea here is to catch these big trends as early on as possible.
Let’s dive right in and check out what these future big boys are up to.
This is our Junior International Hall of Famers list:
In this scan, we look to identify 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.
The market keeps rewarding investors for buying some of Wall Street's most hated stocks.
We're getting buy signals from biotechnology and crypto stocks, which tends to happen in healthy market environments.
With this in mind, we're going back to the well and buying a biotech stock with nearly 1/3 of the float sold short and a double-digit days-to-cover ratio.
The stock we're buying is named after what was once an important ancient trade center in modern-day Turkey.
Let's talk about how we're playing this short squeeze:
Below is the 7th ASC Mastermind Lab Course. These are special videos that will be made available throughout the duration of the 12-week course featuring conversations with professionals from across Wall Street discussing topics in their expertise.
In our last Mastermind Lab, I spoke with Jason Perz about the relationship between bonds, commodities, and currencies. This time, I wanted to bring the conversation back to the stock market. Enter Todd Sohn, ETF & Technical Strategist at Strategas Securities.
Todd and I discussed the ETF market at length, how it's evolved in recent years, and its future. We also discussed a variety of different intermarket analysis techniques that incorporate ETFs.
Despite bond yields and dollars screaming higher and reaching overbought conditions, stocks and precious metals rallied during what is historically the worst time of the year.
Welcome back to Under the Hood, where we'll cover all the action for the two weeks ended October 25, 2024. 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.
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.
