Strazza Archives - All Star Charts

The Minor Leaguers (01-15-2021)

January 18, 2021 by Steve Strazza

From the desk of Steve Strazza @Sstrazza

In a further effort to identify individual equities that fit within our larger more Macro thesis, we couldn’t be happier to roll out and share our latest bottoms-up scan: “The Minor Leaguers.”

We’ll also be writing a post every other week where we outline some of our favorite setups from the watchlist. This is the first edition.

Moving forward, we’ll be rotating this column with “Under The Hood” each week.

In order to make it onto our Minor League list, you must have a market cap between $1 and $2B. There are also price and liquidity filters.

Then, we simply sort the stocks by their percentage from new highs. Easy.

And what better time than now to launch a small-cap focused column!? We’ve seen very strong evidence of a structural rotation down the market cap scale, suggesting a new period of outperformance from small-caps in recent months/quarters.

This should be a great way to take advantage of that trend. Let’s dive right in!

[Read more…]

2 to 100 Club: Special Edition

January 15, 2021 by Steve Strazza

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.

[Read more…]

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

January 13, 2021 by Steve Strazza

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 focused on technology and growth industry groups such as Software, Semiconductors, Online Retail, Solar, etc.

Then like any good technician, we filter the list down to those that are closest to new 52-week highs. This allows the cream of these strongest groups to rise to the top and makes our job easier to identify technical breakouts in the top-performing stocks.

[Read more…]

Under The Hood (01-08-2021)

January 12, 2021 by Steve Strazza

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 makes us confident that we’re producing the best list each week and gives us more optionality in terms of finding the most favorable trade setups for our clients.

[Read more…]

Young Aristocrats (January 2021)

January 5, 2021 by Steve Strazza

From the desk of Steve Strazza @Sstrazza

Dividend aristocrats are easily some of the most desirable investments on Wall Street. These are the names that have increased dividends for at least 25 years, providing steadily increasing income to longer-term minded shareholders.

As you can imagine, the companies making up this prestigious list are some of the most recognizable brands in the world. Coca-Cola, Walmart, and Johnson & Johnson are just a few of the household names making the cut.

Here at All Star Charts, we like to stay ahead of the curve. That’s why we’re turning our attention to the future aristocrats. In an effort to seek out the next generation of the cream-of-the-crop dividend plays, we’re curating a list of stocks that have raised their payouts every year for 5-9 years.

Introducing the Young Aristocrats. We like to say these are “stocks that pay you to make money”. Imagine if years of consistent dividend growth and high momentum & relative strength had a baby, leaving you with the best of the emerging dividend giants that are outperforming the averages.

By adding our technical analysis to the mix, the Young Aristocrat setups give you the opportunity to own the best of the market’s future blue-chip winners before they become must-own household names.

And maybe the best part? This list is not just designed for long-term investors. Traders of all time frames can use this list to help generate ideas even in the shorter-term. Remember, some of the most important filters we use for this list are momentum, relative strength, and proximity to new highs. So let’s keep it real, these stocks are going up across all time horizons.

With that said, Let’s dive right in… [Read more…]

RPP Report: Review. Preview. Profit. (01-04-2021)

January 4, 2021 by Louis Sykes

From the desk of Steve Strazza @Sstrazza and Louis Sykes @haumicharts

At the beginning of each week, we publish performance tables for a variety of different asset classes and categories along with commentary on each.

Looking at the past helps put the future into context. In this post, we review the absolute and relative trends at play and preview some of the things we’re watching in order to profit in the weeks and months ahead.

After several months of consolidation, the major indexes have set the foundation for another leg upward in line with their primary trends. We’ve been seeing many of them resolve higher in recent weeks.

We continue to see rotation into economically sensitive and cyclical assets – supporting our view that there is a strong appetite, not aversion, for risk.

And the FICC markets continue to confirm this bullish environment for stocks and risk assets. [Read more…]

The Minor Leaguers (01-01-2021)

January 3, 2021 by Steve Strazza

From the desk of Steve Strazza @Sstrazza

In a further effort to identify individual equities that fit within our larger more Macro thesis, we couldn’t be happier to roll out and share our latest bottoms-up scan: “The Minor Leaguers.”

We’ll also be writing a post every other week where we outline some of our favorite setups from the watchlist. This is the first edition.

Moving forward, we’ll be rotating this column with “Under The Hood” each week.

In order to make it onto our Minor League list, you must have a market cap between $1 and $2B. There are also price and liquidity filters.

Then, we simply sort the stocks by their percentage from new highs. Easy.

This should be a great way to take advantage of that trend. Let’s dive right in!

[Read more…]

[Premium] 2 to 100 Club (12-31-2020)

December 31, 2020 by Steve Strazza

From the desk of Steve Strazza @Sstrazza

Welcome to the 2 to 100 Club.

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.

When you look at the stocks in our table you will notice we are only focused on technology and growth industry groups such as Software, Semiconductors, Online Retail, Solar, etc.

[Read more…]