The largest insider transaction on today’s list comes in a Form 4 filed by Michael Andrew Chambers, director of Sarepta Therapeutics $SRPT.
Chambers reported an additional purchase of 23,686 SRPT shares, equivalent to $2.5 million.
Expert technical analysis of financial markets by JC Parets
by David
The largest insider transaction on today’s list comes in a Form 4 filed by Michael Andrew Chambers, director of Sarepta Therapeutics $SRPT.
Chambers reported an additional purchase of 23,686 SRPT shares, equivalent to $2.5 million.
by David
From the Desk of Kimmy Sokoloff
The indices ran right to resistance yesterday only to get slammed overnight.
It’s a little bit of a tug of war right here between the bulls and the bears.
From the desk of Steve Strazza @Sstrazza
Welcome to our latest Minor Leaguers report.
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, a company must have a market cap between $1 and $4B.
And it doesn’t have to be a Russell component — it can be any US-listed equity. With participation expanding around the globe, we want all those ADRs in our universe.
The same price and liquidity filters are applied. Then, as always, we sort by proximity to new highs in order to focus on the best players.
But, instead of all-time highs, we’re sorting by 52-week highs these days, as we don’t want to discriminate against energy or other cyclical stocks.
The goal is still to catch the strongest names while they’re small and have serious upside potential. If any of these stocks ever climb the ranks to the big leagues, the returns could be huge.
We’re looking at up to 10x moves just to break into large-cap land!
Let’s dive into this week’s report and see what’s happening in some of the hottest stocks in the Minor Leagues.
by David
From the Desk of Kimmy Sokoloff
$SPY and $QQQ are stuck under a lot of resistance levels.
There’s a possibility we break above those levels this week, but we must keep stops tight.
From the Desk of Steve Strazza @sstrazza and Alfonso Depablos @Alfcharts
This is one of our favorite bottom-up scans: Follow the Flow.
In this note, we simply create a universe of stocks that experienced the most unusual options activity — either bullish or bearish, but not both.
We utilize options experts, both internally and through our partnership with The TradeXchange. Then, we dig through the level 2 details and do all the work upfront for our clients.
Our goal is to isolate only those options market splashes that represent levered and high-conviction, directional bets.
We also weed out hedging activity and ensure there are no offsetting trades that either neutralize or cap the risk on these unusual options trades.
What remains is a list of stocks that large financial institutions are putting big money behind.
And they’re doing so for one reason only: because they think the stock is about to move in their direction and make them a pretty penny.
Then we flip through our list of stocks flashing unusual activity and pick the best setups using many of the same technical filters we do for our other scans.
And, just like that, we’ll follow the money flow and fatten our own pockets along with some of the world’s most powerful financial institutions.
by JC
The stock market bears have been capitulating. Have you noticed?
Those twitter spaces full of permabears crying about how bad things are going to get for stocks, no longer exist. They’ve completely disappeared.
These sell side analysts who missed this entire bull market are now coming out saying things might not be so bad.
The worst performing ETF in the history of ETFs was just delisted because the permabear fund manager doesn’t know how to not be a permabear during a raging bull market.
Goldman Sachs came out saying their Hedge Fund clients covered their short positions last month at their most aggressive pace in years.
Everyone agrees that this recession isn’t coming.
Everyone agrees that inflation is no longer a problem.
Boy have things changed over the past year.
Look at the latest MoneyWeek cover featuring a child robot riding a bull racing across the floor of the NYSE throwing research reports at adults in suits with ridiculous smiles on their faces.
Things you see near tops? Or things you see near bottoms?
Just to put things in perspective, here’s what the MoneyWeek covers looked like the week that the New Lows List peaked in June of 2022.
The market got consistently stronger with broadening participation, immediately after these magazine covers were published.
And as bullish as we had been that entire time, many of our targets were recently hit in Growth stocks, and betting on a Regime Change has made a lot more sense.
The back half of this year has already been much different than the first half.
Besides, this is the time of the cycle when the major indexes are supposed to struggle.
Just as the bears are capitulating, we enter the weakest seasonal period of the cycle:
After one of the most legendary runs in the history of the stock market, it’s the perfect time for the indexes to take a break.
Doesn’t it make sense for that to occur once everyone finally agrees with us that this is a bull market?
I don’t like being long when everyone agrees we should be long.
It’s better being lonely in my positioning.
I think there will continue to be huge winners underneath the surface while the major indexes like the S&P500 and Nasdaq100 struggle.
JC
by David
The largest insider transaction on today’s list comes in a Form 4 filed by Michael Andrew Chambers, director of Sarepta Therapeutics $SRPT.
Chambers reported a purchase of SRPT shares worth $3.7 million.
by JC
The Nasdaq100 is already down 4.5% this month. Technology as a sector is down almost 6.5% for August.
But corrections are a choice, not a requirement.
As an investor, you make the choice and decide which assets you want to own and which you do not.
Remember, “Passive Investing” is a lie. There’s no such thing. All investors are active. The difference is whether you choose your portfolio holdings, or you let some random index providers make those decisions for you.
But we’re all active investors, whether we like it or not. Don’t forget that.
So even thought the indexes are messy this quarter, take a look at Energy hitting new 6-month highs this week: [Read more…]