From the desk of Steve Strazza @Sstrazza

Welcome to The 2 to 100 Club.

In this scan, we look to identify 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...

From the Desk of Steve Strazza @Sstrazza

When investing in the stock market, we always want to approach it as "a market of stocks."

Regardless of the environment, there are always stocks showing leadership and trending higher.

We may have to look harder to identify them depending on current market conditions. But there are always stocks that are going up.

The same can be said for weak stocks. Regardless of the environment, there are always stocks that are going down, too. 

We already have multiple scans focusing on stocks making all-time highs, such as Hall of Famers, Minor Leaguers, and the 2 to 100 Club.

We filter these universes for stocks that are exhibiting the best momentum and relative strength characteristics. 

Clearly, we spend a lot of time identifying and writing about leading stocks every week, via multiple reports.

...

It was a busy week for stocks, but the most important price action was elsewhere.

The US Dollar is getting rocked as risk-on currencies catch big bids.

And it’s all happening at a critical level, that if violated, could mark a major shift in the intermarket landscape.

The one big question all investors should be asking themselves right now is simple…

“What is the best trade if this is a failed breakout in the dollar?”

In other words, what goes up the most if the dollar gets slammed back into the box?

Or even, what will be the best trends if the dollar heads back to the lower bounds of its range?

And I have some thoughts on this. I’ve been thinking about it for a long time.

I was expecting the dollar to become a tailwind last year. It didn’t happen. A falling dollar was the one thing missing during the post-election rally. But I think it’s coming now.

When I think about a weak dollar, I think about international equities. The most offensive areas of the global stock market should fare well with a falling dollar. Emerging...

Our International Hall of Famers list is composed of the 100 largest US-listed international stocks, or ADRs.

We've also sprinkled in some of the largest ADRs from countries that did not make the market cap cut. 

These stocks range from some well-known mega-cap multinationals such as Toyota Motor and Royal Dutch Shell to some large-cap global disruptors such as Sea Ltd and Shopify.

It's got all the big names and more–but only those that are based outside the US. You can find all the largest US stocks on our original Hall of Famers list.

The beauty of these scans is really in their simplicity.

We take the largest names each week and then apply technical filters in a way that the strongest stocks with the most momentum rise to the top.

Based on the market environment, we can also flip the scan on its head and filter for weakness.

Let's dive in and take a look at some of the most important stocks from around the world.

Here's this week's list:

The bid for Chinese equities has been relentless all year long.

Alibaba is up about 50% over the trailing month.

BYD Co is up about 30% in February alone.

Xiaomi Corp is making new all-time highs.

Even the iShares China Large Cap Index has rallied 20% off its January lows.

You get the point. China is red hot. 

With price action like this, you might start to wonder, “where is all the money coming from!?”

And the answer is probably a lot of places. Who knows.

But one area that has definitely become a source of funds for new China bulls… is India. 

This is a ratio chart of Chinese stocks vs Indian stocks, and it is flashing a textbook trend reversal in favor of China.

The relationship had been skewed toward India in a big way up until last year. In fact, Indian stocks have been outperforming China aggressively for almost a decade now. This all began back in 2016, so...

All the Euro STOXX Indexes are at new all-time highs.

The DAX is at new all-time highs.

Germany is about to break out of a massive base in USD terms.

Spain and Greece are completing multi-decade bases.

European equities are on absolute fire right now and participation is broad.

Meanwhile, they are still talking about the recession in the Eurozone.

It’s a perfect setup. In fact, the bull thesis here is a lot like China in a sense that many of these countries check all three boxes… sentiment, technicals, and valuation.

Some of these European countries like Poland and Austria are even cheaper than China with CAPE ratios around 10x. 

They also come with plenty of beta. For example, the MSCI Poland ETF EPOL is already up about 150% off its 2022 cycle low.

This kind of action says a lot about risk appetite, too. This is true for some areas of Europe more than others.

From the desk of Steve Strazza @Sstrazza

Welcome to The 2 to 100 Club.

In this scan, we look to identify 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...

This stock is really special to me.

It’s the first one I ever bought. 

I used to watch Jim Cramer with my father when I was in high school. He knew I had an interest in the market so gave me a bit of money to experiment with.

I took one of Jim’s calls and bought Build Your Dreams. Part of his bullish thesis was that Buffett was in. This was almost 20-years ago. I paid the $50 international fee and got long.

They call it BYD Co. now. But, it’s the Tesla of China. These guys have been making EVs and batteries longer than anyone. They are an industry leader, and no one ever talks about them.

Mobility is a monster trend and it is just picking up steam.

China is also a monster trend right now. I think it’s the fattest pitch in the market. It’s the kind of trade setup we wait years for. 

And BYDDF is one of the secular leaders in the region.

Much unlike Alibaba, Tencent, and Baidu – the other mega-tech bellwethers – BYD Co is breaking out to new all-time highs.

The bottom line is it is one of the best-looking charts in...

We bought some calls in EHang $EH yesterday.

They build autonomous flying cars in China. Some real-life Jetsons stuff.

We also bought some calls in PDD Holdings $PDD.

They are one of the Chinese online retail conglomerates, known in the US for temu.com.

Today, I sold half of both of my positions at double the price I paid yesterday.

Now, this does not mean I think these stocks will go lower from here. I think they’re going higher.

It’s just my rule. I follow it religiously. 

It keeps me in the game. It’s how I keep swinging.

When I sell a double I am effectively earning a risk-free shot at making big profits. No matter what happens, I can’t lose.

But, it’s bigger than that. It’s not about the half position left on the table.

It’s about getting liquid and doing it quickly.

It’s about getting my money back. 

In bull markets I don’t just have cash laying around. I’m invested. 

And in times like these, there are so many opportunities....

From the desk of Steve Strazza @Sstrazza

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.

Here’s this week’s list:

*Click table to enlarge view

We filter out any laggards that are down -5% or more relative to the S&P 500 over the trailing month.

Then, we...

Every now and then I come across a chart that I feel the need to send over to our friends at the CMT association.

The curriculum covers all sorts of pattern recognition and analysis. While things don’t always work out the way the textbook teaches… sometimes, they do. And it’s just so lovely to see. 

It’s happening now with the recent action in Bank OZK. Both of these flag pattern breakouts are picture perfect.

Let’s use this chart as an example to discuss the classic continuation pattern.

Price was coiling in a bear flag coming into the year. 

The only difference between the first flag and the second flag is the trend that preceded them. When the trend that leads into the coil is down, it is a bear flag. When it is up, like it is now, it is a bull flag.

Another difference between the two formations is the way that they resolved. The bear flag resolution is actually considered a failed pattern as it resolved in the opposite direction of the downtrend that preceded it.

Failed patterns are some of the best patterns though. As...