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...

This is the video recording of the March 27, 2024, Hot Corner Insider Weekly Strategy Session.

There are 3 big divergences right now that I think we want to keep a close eye on.

The first ones comes straight from Papa Dow.

We're looking at a classic Dow Theory Divergence between the Dow Jones Industrial Average and Dow Jones Transportation Average.

We've seen these sorts of things before major market tops. You saw it in 2000, you saw it in 2008, you saw it in 2015 and you saw it in 2020.

In this particular case, you're seeing new highs from the Dow Industrials but lower highs in the Transports:

From the Desk of Steve Strazza and Alfonso Depablos

The most significant insider transaction on today’s list comes in a Form 4 filing by Erik D. Ragatz, director of Grocery Outlet Holding Corp $GO.

Ragatz reported a purchase of roughly $1 million in GO shares.

What was once the world's largest company by market-cap has lost half a trillion dollars in value, in what feels like a split of a second.

Boy was that was fast.

Half a Trilly. Gone. Just like that.

So just to put things in perspective, for those of you who might not realize how much money that amounts to, there are only 13 companies on the planet worth over half a trillion dollars.

Apple lost half a trillion in value in just a few months.

Here it is making new 28-month lows today relative to the S&P500:

From the Desk of Steve Strazza and Alfonso Depablos

The most significant insider transaction comes in a Form 4 filing by Blue Star Exploration Corp. and director Jerry Jones, owner of the NFL’s Dallas Cowboys.

Blue Star and Jones revealed a roughly $100 million purchase in Comstock Resources Inc $CRK.

One of my favorite setups is when you have a major "top" formation, that doesn't actually turn into a reversal pattern and top for the market.

A recent example was in shares of Disney.

If you guys recall, this one looked like a major top, sentiment was down in the dumps, and we were buyers at 80.

Here we are with Disney at 120 and hitting new 52-week highs.

I gotta tell you, this setup in Energy looks exactly like that.

Look at this chart below - it's got all the hallmarks of a top:

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...

That was the highest weekly close for the US Dollar Index since early November.

The trend has been higher for the US Dollar throughout the entire 1st quarter of 2024.

Remember, the Dollar bottomed towards the end of December in 2023.

So how much higher can the Dollar go?

From the Desk of Steve Strazza and Alfonso Depablos

The largest insider buy on today’s list comes in Form 4 filings by the chairman of the board and one director of Liberty Latin America Ltd $LILA.

The two board members made purchases of LILA shares for a combined amount of $7 million.

There is a time and a place for everything in this market.

One of the more fascinating groups of stocks for me right now (and always for that matter) is when a stock has a very high short interest, and is making new highs.

You see, here's what many people fail to remember:

Short sellers are promising to be buyers in the future. Shareholders are only promising to be sellers.

And so what that means to us is that the more short sellers there are in a given stock, the more investors there are promising to buy the stock in the future.

In their view, they would ideally like to buy these stocks back at lower prices (for a profit).

But what happens instead, in many cases, is that they are forced to cover at much higher prices (for massive losses).

And that's where we...

From the Desk of Steve Strazza @Sstrazza

The animal spirits have returned to equity markets near you!

How do we know?

Take a look around...

Biotechs are putting the finishing touches on a massive base, suggesting a new bull market for these stocks is underway.

Speculative growth indexes like the suite of ARK ETFs are completing (or have already completed) trend reversals.

The Renaissance IPO fund is at its highest level since early 2022.

A growing list of emerging markets countries (outside of China) are making new highs.

Cryptocurrencies are mooning every night while we're sleeping.

Participation is broadening to new groups like materials, and funds are flowing back into energy and financials again.

The most-hated and lowest-quality stocks in the market are catching a serious bid.

So, what do we do?

This is the optimal market environment for our Freshly Squeezed universe.

The idea behind this one is to find the stocks that bears are betting against the most and take the opposite side as they squeeze higher.

We've already witnessed a number of powerful short-covering...