We love our bottoms-up scans here at All Star Charts. We tend to get really creative when making new universes as we want to be sure they will deliver us the best opportunities the market has to offer.
However, when it comes to this one, it couldn't be any simpler!
With the goal of finding more bullish setups, we have decided to expand one of our favorite scans and broaden our regular coverage of the largest US stocks.
Welcome to TheJunior Hall of Famers.
This scan is composed of the next 150 largest stocks by market cap, those that come after the top 150 and are thus covered by the Hall of Famers universe. Many of these names will someday graduate and join our original Hall Of Famers list. The idea here is to catch these big trends as early on as possible.
There is no need to overcomplicate things. Market cap is a quality filter at the end of the day. It only grows if price is rising. That's good enough for us.
We’ve heard it all about speculative growth stocks over the past few years.
Cathie Wood and the entire ARK Invest strategy has been lambasted by the media.
You’ve seen the cover stories. They tried to destroy her.
But Cathie’s ARK didn’t wreck. It survived the storm.
And I think it’s bigger than that. I think the most speculative, highest risk, longest duration equities are about to have their time in the sun again.
Everything I’m seeing suggests we are entering that part of the cycle where the worst stocks become the best stocks.
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...
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.
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.
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...
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...