From the Desk of Steve Strazza and Alfonso Depablos

The only transaction on today’s list comes in a Form 4 filing by James F. Lynch, director  of Globalstar Inc $GSAT.

Lynch reported a purchase of GSAT shares with a total value of $1,264,175.

From the desk of Steve Strazza @Sstrazza

Welcome to The 2 to 100 Club.

As many of you know, something we've been working on internally is using 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...

It was remarked during our Analyst meeting this morning that "bullish Wells Fargo" is a phrase that hasn't been uttered within our digital walls in a long, long time.

But we're looking to get more exposure to the banking sector, and $WFC is consolidating nicely after a fresh breakout last week. With all-time highs within bull market distance, we feel like we can get aggressive with this name for a run.

Implied volatility in $WFC call options is pretty tame here, so that affords us the luxury of going out six months to play the June options which will give us plenty of time to see if $WFC has the stuff.

Here's a chart of $WFC to set the stage:

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

1. No new position today.
2. Defensive adjustment in ITB.
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 only transaction on today’s list comes in a Form 4 filing by Tom Kelleher, co-CEO of B. Riley Financial $RILY.

Kelleher reported a purchase of $404,392.

This is the 14th Form 4 filed for RILY this year.

The old saying from our friend Jeff Hirsch goes, "Buy in October and Get yourself Sober".

Did you listen?

And it's not so much about literally buying blindly in October, and more about the fact that stocks tend to end their seasonal corrections around that time, before going on to rally into the end of the year.

And that's exactly what we've seen.

Here is the 4-year seasonal cycle, which of course, suggested strength in equities since mid-term elections last year. And we certainly saw it.

Then the ...

It's stupidly easy to get swept away in narratives.

From the constant buzz about ETFs to the rise of random meme coins and the infamous halvening, it's hard to escape the storytelling.

It's amusing how people confidently share fundamental narratives during bullish markets, only to resort to drawing lines when sellers enter the scene.

Understanding why a market is trending is normal, but is it really helpful?

Not so much.

From the Desk of Steve Strazza @sstrazza and Alfonso Depablos @Alfcharts

This is one of our favorite bottom-up scans: Follow the Flow.

In this note, we simply create a universe of stocks that experienced the most unusual options activity — either bullish or bearish, but not both.

We utilize options experts, both internally and through our partnership with The TradeXchange. Then, we dig through the level 2 details and do all the work upfront for our clients.

Our goal is to isolate only those options market splashes that represent levered and high-conviction, directional bets.

We also weed out hedging activity and ensure there are no offsetting trades that either neutralize or cap the risk on these unusual options trades.

What remains is a list of stocks that large financial institutions are putting big money behind.

And they’re doing so for one reason only: because they think...

From the Desk of Ian Culley @IanCulley

If it wasn't at the very top of the list, the Japanese yen was certainly among the best shorts of 2022.

But the times they are a-changin’.

King Dollar has ducked down a dark alley.

And it doesn't take a weatherman to tell us to buy the yen.

Here are Japanese yen futures carving out a year-long base following fresh 30-year lows:

I like buying strength on a breakout of this bottoming formation. But the yen has quite a way to travel before completing this possible double bottom. 

I don’t want to miss those potential gains, so let’s get tactical by taking a closer look… 

Check out the daily chart with a Fibonacci retracement framing the 2023 decline:

I’m long Japanese yen futures against 0.7075 (the 38....

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

1. No new position today.
2. Defensive adjustment in TLT.
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 first transaction on today’s list comes from a Form 4 filing by Olema Pharmaceuticals Inc $OLMA director Graham Walmsley.

Walmsley reported a purchase of OLMA shares with a total value of $6.8 million.

During bull markets, the leading stocks tend to remain leaders longer than most investors can fathom.

That's just how markets work.

This cycle Nvidia has been a big winner. It was one of the first to break out to new all-time highs. And it's been one of the best performers, despite its massive $1.2 Trillion market cap.

That's the exact definition of a market leader. And our bet is that it continues to hold that title: