From the Desk of Steve Strazza @Sstrazza

Welcome to The 2 to 100 Club.

As most of you know, we use 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...

Traders have made a lot of noise about the recent correction in Apple. And yes, the selloff has been large (for Apple).

But with daily trading volumes beginning to wane, it feels to me that the run has begun to exhaust itself and bears will have one more last-ditch opportunity with earnings on the horizon.

Barring something unusual, I think there will be something to disappoint both bears and bulls alike, amounting to a whole lot of nothing. Which sets up the perfect time for a sideways bet.

In today's Daily Digest, we'll review:

1. New position in XME.
2. No adjustments are needed today.
3. No exits since the last report.
4. Current status of open campaigns.

Let's dig in!

From the Desk of Steve Strazza and Alfonso Depablos

The largest insider move on today’s list comes via multiple Form 4 filings from insiders of Pagaya Technologies Ltd $PGY. 

The chief executive officer, the chief people officer, the chief technology officer, the president, and one director all bought $PGY shares, their combined purchases totaling $2,012,401.

From the Desk of Steve Strazza and Alfonso Depablos

The largest insider move on today’s list comes via multiple Form 4 filings from insiders of Pagaya Technologies Ltd $PGY. 

The chief executive officer, the chief people officer, the chief technology officer, the president, and one director all bought $PGY shares, their combined purchases totaling $2,012,401.

You hear that?

Chop, chop, chop...

It's the sound of traders getting chopped up. Crypto markets are consolidating. What's wrong with that?

After the moves we've seen down the cap-scale, some period of sideways price action is perfectly healthy! But while these markets digest their gains, I think it's best to leave trading to a minimum for now.

Today we'll be revisiting a number of our previous trade ideas and outlining a mean reversion setup in Helium.

When putting on positions with undefined risk (naked short puts, or short strangles, for example), one question I often get asked is: “How do you determine your position size?”

This is perhaps the most important question to ask when putting on these types of trades!

I have two imprecise, imperfect ways that I decide:

This is the video recording of the April 9, 2024, Hot Corner Insider Weekly Strategy Session.

In today's Daily Digest, we'll review:

1. No new positions today.
2. Adjustment to GLD position.
3. No exits since the last report.
4. Current status of open campaigns.

Let's dig in!

From the Desk of Steve Strazza and Alfonso Depablos

The largest insider buy on today’s list comes via Form 4 filings by Warren Buffett and Berkshire Hathaway.

Buffett and Berkshire reported purchases in The Liberty SiriusXM Group $LSXMA for a total amount of $97 million.

Earlier today we discussed the NYSE Oil Index breaking out to new all-time highs.

I really like this Index because, since it's NYSE-based, it includes energy stocks from all over the world.

As long as it trades on the NYSE, who cares if it's TOTAL in France, or Petrabras in Brazil?

These are the most important Oil stocks in the world and the index is hitting new all-time highs.

Here are all the stocks in the index relative to a variety of moving averages (getting longer-term moving from left to right on this chart below):

Think of Gold as the stable asset. And then stocks and other forex markets are just trading up and down relative to the price of Gold.

This week we discussed the fact that currencies all over the world have been losing their value, particularly relative to the price of Gold.

But this month now even the US Dollar has broken down relative to Gold.

You can get all those details here.

So if we're going to take the value of stocks and other fiat, and price it in Gold, then we should treat Crypto the same way.

Here are Bitcoin and Ethereum priced in "Real Money":

From the Desk of Steve Strazza and Alfonso Depablos

The largest insider buy on today’s list comes via Form 4 filings by Warren Buffett and Berkshire Hathaway.

Buffett and Berkshire reported purchases in The Liberty SiriusXM Group $LSXMA for a total amount of $97 million.

From the Desk of Steve Strazza @Sstrazza

Welcome to The Minor Leaguers.

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 now, a company must have a market cap between $1 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...

New all-time highs have a funny way of shifting perspectives.

Not too long ago, many considered gold a “dumpster fire,” a “hot mess,” or an “opportunity cost.”

All were fair assessments. 

Everything changed last month when gold rocketed to its highest recorded level.

Yet, for some reason, investors weren’t buying into its strength.

But a 12% gain over the past five weeks has quickly turned reluctant investors into ravenous speculators.

From the Desk of Ian Culley @IanCulley

New all-time highs have a funny way of shifting perspectives.

Not too long ago, many considered gold a “dumpster fire,” a “hot mess,” or an “opportunity cost.”

All were fair assessments. 

Everything changed last month when gold rocketed to its highest recorded level.

Yet, for some reason, investors weren’t buying into its strength.

But a 12% gain over the past five weeks has quickly turned reluctant investors into ravenous speculators.

In today's Flow Show, me and Steve Strazza came out swinging with an opportunity to add to an already winning options trade.

Back in late January, we entered into a bullish longer-term bet in Wells Fargo $WFC. You can read about it here. That original position still has until January 2025 to play out (another nine months).

But take a look at this high & tight flag forming on the eve on their next earning release scheduled for this Friday morning:

To us, this screams an opportunity for an upside resolution happening with the earning report being the catalyst.

Looking into the monthly May expiration options, premiums are not bad for a play targeting a measured move to the $70 area.

Here's the Play: