From the desk of Steve Strazza @Sstrazza
Yesterday, we discussed one of our favorite stocks from the hot list right now and today, we have another new idea.
Before we get there though, let’s reiterate yesterday’s trade.
Expert technical analysis of financial markets by JC Parets
by David
From the desk of Steve Strazza @Sstrazza
Yesterday, we discussed one of our favorite stocks from the hot list right now and today, we have another new idea.
Before we get there though, let’s reiterate yesterday’s trade.
by David
Durable Capital Partners continues to be active, now with an $8.5 million purchase of software company Clearwater Analytics Holdings $CWAN.
In recent weeks, the investment firm has also made filings for purchases in Duolingo $DUOL and Warby Parker $WRBY.
From the desk of Steve Strazza @Sstrazza
Welcome to the 2 to 100 Club.
As many of you know, something we’ve been working on internally is using 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.
Some of the best performers in recent decades – stocks like Priceline, Amazon, Netflix, Salesforce, and myriad others – 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’ll notice we’re 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 closest to new highs.
This allows the cream of these strong groups to rise to the top and helps streamline our mission to identify technical breakouts in the top-performing stocks.
by David
Executives and corporate insiders have been busy to start the week as we have another long list of Form 4 filings today.
Among them is another large purchase by Nelson Peltz’s Trian Fund in the British asset management firm Janus Henderson Group $JHG.
by David
This is the video recording of our March 16, 2022, Inside Scoop Weekly Strategy Session.
by Ian Culley
From the desk of Steven Strazza @Sstrazza and Ian Culley @IanCulley
For more than a year, most of the market and many of our risk ratios have been a trendless mess.
High Beta vs. Low Volatility, Copper vs. Gold, and our custom Risk-On vs. Risk-Off ratio have all gone nowhere since the beginning of 2021.
The Australian dollar/Japanese yen also falls into the range-bound category, as the risk-on pair looks a lot like the ratios we just mentioned.
But AUD/JPY has been showing resilience the past few weeks and is currently challenging the upper bounds of its multi-month range.
Since most risk appetite indicators aren’t giving us much in the form of new information these days, an upside resolution from AUD/JPY would be a major development.
It hasn’t happened yet, but things are certainly setting up that way.
In today’s post, we’ll dive into one of our favorite risk-on/risk-off gauges – the AUD/JPY cross – and discuss what it’s currently suggesting about risk-seeking behavior.
by David
Abdiel Capital filed a Form 4 yesterday revealing a purchase of an additional 105,500 shares in the software company Appian Corp $APPN.
The firm also made a large purchase in February in the amount of roughly $6.5 million. It now owns nearly 6 million shares of APPN, representing an ownership stake of approximately 14%.
Another software stock, Shift4 Payments $FOUR, had insider activity reported, as the chairman of the board and CEO, Jared Isaacman, filed a Form 4 revealing a purchase worth approximately $1.7 million.
Isaacman now owns 334,742 shares of FOUR.
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.
We recently decided to expand our universe to include some mid-caps…
For the first year or so, we focused only on Russell 2000 stocks with a market cap between $1B 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.
The way we did this is simple…
To make the cut for our new Minor Leaguers list, a company must have a market cap between $1B 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.