The Outperformers is our newest scan that pinpoints the very best stocks in the market. It’s the fastest, easiest way to find quality names that are primed for major moves.
The goal is that as the market rally progresses, the sector rotation within the market will reflect in this scan. So while our Top/Down Analysis helps us with the broader view of the market, this Bottom/Up scan makes sure that we catch the slightest change in sentiment.
Insiders are finally buying into the summer rally. We haven’t seen this much action on our Hot List in months!
The largest insider transaction on today’s list is a Form 4 filing by the Chairman and CEO of American Assets Trust $AAT, with a roughly $1 million purchase.
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.
Non-members can get a quick recap of the call simply by reading this post each month.
By focusing on long-term, monthly charts, the idea is to take a step back and put things into the context of their structural trends.
This is easily one of our most valuable exercises as it forces us to put aside the day-to-day noise and simply examine markets from a “big-picture” point of view.
With that as our backdrop, let’s dive right in and discuss three of the most important charts and/or themes from this month’s call.
When the worst stocks on the planet can't go down any more, that's usually good information.
We saw a lot of Small-cap Growth, Arkk Funds, Biotech, Chinese Internet and many of those other "Growthy" areas bottom out this Spring, and some of the last ones in June.
At the Mega-cap level, nothing caused more shareholder wealth destruction than Facebook, down 60% from its highs less than a year ago.
With a few breadth thrusts in recent weeks, and a little preview of what a weaker dollar could do to this market, we had plenty to talk about.
This question included: New Bull or Mean Reversion in a Bear?
I think the S&P500 tells an interesting story. You've got that massive top that formed throughout the past year, completing with a break of support this Spring.
And after further selling, the bounce has brought it back all the way to the neckline. These are the "trenches":
The largest insider transaction on today's list is a Form 4 filing by Artal Group, which reported a purchase of roughly $40.4 million in Lexicon Pharmaceuticals $LXRX.
Artal Group now owns 83,835,950 LXRX shares, representing a roughly 47.5% ownership stake.
