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.
"JC, how could you say we're already in the 8th Month of a new bull market???"
The things people call me over email or on twitter are not something I would repeat in front of my mother, or daughter, and certainly not in front of any of you guys.
But I'm a big boy. I spent a lot of time on trading floors, dugouts and locker rooms. I've heard way worse.
It is interesting, however, to observe the feedback I get from just some basic arithmetic.
This isn't like some random opinion I have about the economy, or Fed policy or earnings. This is just 3rd grade math.
Are more stocks going up? Are more stocks making new highs? Or are more stocks going down and making new lows?
Since June, the answer has been up and certainly not down.
Notice how the new lows list peaked in Q2. Even though some of the large-cap growth-heavy indexes made new lows later in the year, even for just a hot second, by that point there were almost no stocks left that were going down.
