From the Desk of Steve Strazza @Sstrazza and Alfonso Depablos @AlfCharts
The new highs list continues to grow as more and more stocks resolve higher from their consolidations.
The word “rotation” is being thrown around a lot these days as value and cyclical groups have risen to the top of the leaderboard over short timeframes.
While the action can be categorized as rotation, I think a better description for what’s taking place is a broadening of the current rally.
Every single sector was higher in the month of June. So it’s not that money is coming out of the leaders as much as it is going into the laggards at an increasing rate.
At the end of the day it’s just semantics. What this expansion in participation means for investors is more bullish chart patterns and more long opportunities.
Let’s talk about some new ones from our Hot Corner universe.
This is the sort of thing that happens in bull markets.
You can see Ethereum and Bitcoin both finding support the past year near former resistance levels from the highs in its prior cycle at the end of 2017:
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'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.
The most significant transaction on today's list comes in a Form 4 filing by White Mountains Insurance Group LTD, who revealed a purchase of $59.1 million in MediaAlpha Inc $MAX.
White Mountains increased its ownership stake in MAX to 37.50%.
From the Desk of Steve Strazza @Sstrazza and Alfonso Depablos @AlfCharts
Our Hall of Famers list is composed of the 150 largest US-based stocks.
These stocks range from the mega-cap growth behemoths like Apple and Microsoft – with market caps in excess of $2T – to some of the new-age large-cap disruptors such as Moderna, Square, and Snap.
It has all the big names and more.
It doesn’t include ADRs or any stock not domiciled in the US. But don’t worry; we developed a separate universe for that. Click here to check it out.
The Hall of Famers is simple.
We take our list of 150 names and then apply our technical filters so the strongest stocks with the most momentum rise to the top.
Let’s dive right in and check out what these big boys are up to.
