2 to 100 Club

From the desk of Ricardo Sarraf @nullcharts

Every cycle produces a handful of stocks that go from emerging to enormous — names that compound 10x, 20x, 50x before they become portfolio fixtures. 

But they don't come from every corner of the market. We have a system that’s designed to find these names. 

Welcome to The 2 to 100 Club.

Here's how it works:

Once stocks 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.

Then, like good technicians, we add a momentum layer.

We filter by proximity to 52-week highs which does two things. First, it tells us what is leading right now and what's closest to a breakout. 

It also quietly eliminates the junk: former large-cap darlings that have since fallen from grace and are now drifting around in our market-cap range for all the wrong reasons. 

Here is this week's list:

*Click to enlarge view

Here are today's setups: