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 during their journey...

From the desk of Steve Strazza @Sstrazza

Monday night we held our November Monthly Conference Call, which Premium Members can access and rewatch here.

In this post, we’ll do our best to summarize it by highlighting five of the most important charts and/or themes we covered, along with commentary on each

Let’s get right into it!

From the Desk of Kimmy Sokoloff

It was a decent morning for us, a few decent trades to send us off into the holiday!!

The market is trying to breakout, and hopefully we get follow-through on Friday.

From the desk of Willie Delwiche.

The S&P 500 just experienced its longest stretch without a 1% daily swing since Thanksgiving week 2021. But moving from volatility to calm is just part of the needed rotation. It will be difficult for bulls to stay optimistic if the market is not able to rotate from weakness to strength.   

Why It Matters: Some of the most challenging years for the stock market in the past half century have had a combination of weakness and volatility similar to what has been experienced in 2022. The best gains have tended to come in years when the market has been calm and strength has been persistent. 2017 is a prime example of this. The recent ebbing in volatility provides some hope that conditions are improving and that the experience of the first three quarters of 2022 is receding into the past. The odds of a better market environment are greater on a shift from weakness to strength than from volatility to calm.  

In this week’s Sentiment Report we take a closer look at the rise in...

After we got past sharing each others' Thanksgiving dinner menus, wine pairings, and recipe swaps, the All Star Charts gang got back to business this morning hunting for trade ideas.

We arrived at today's idea in a roundabout way:

"Discretionary stocks have been the 'least shitty' performers as of late."

"We're seeing relative strength in 'da homies. [Homebuilders]"

"In that sector, Lennar $LEN is showing the best relative strength relative to the others."

...and that is a taste of how the Thanksgiving sausage is made.

So let's dig into some visuals to highlight what we're seeing.

We've adjusted a position in the Paid-to-Play portfolio today:

Following the collapse of Alameda and FTX, crypto's correlations to legacy markets have completely come off.

As an asset class, this is the most independent crypto has traded for over a year. For most asset allocators and traders, this is generally favorable because it increases the number of uncorrelated assets to profit from.

A big problem for crypto traders is they've been merely riding on a short volatility vehicle that's been tightly correlated to long-duration growth stocks.

All crypto has offered in this period is Beta rather than a unique directional market.

So it's certainly been nice to see some dislocation from equity markets -- even if crypto's been lagging hard following the FTX fiasco.

But my bet is this correlation between stocks and crypto will more than likely return in the coming weeks and prove a durable feature of the landscape.

You might not like it, but we must always deal with reality whenever money's on the table.

The most significant insider transaction on today’s list is a $2.5 million purchase by Element Solutions $ESI Director Martin E. Franklin.

The CEO of Nerdy $NRDY also filed a Form 4 disclosing a purchase of $564,439.

From the Desk of Kimmy Sokoloff

First and foremost, a very Happy Thanksgiving to all.

The bull flag pattern I've spoken about is in the process of breaking out. If this continues, this market can head toward $SPX 4,020.

From the Desk of Ian Culley @IanCulley

It’s time to short the USD. 

Based on the weight of the evidence, our bias for the US dollar has flipped bearish. 

Our first shot at betting on a weaker dollar was successful, as the EUR/USD hit its target earlier in the month. That’s encouraging!

But it’s important to note most dollar pairs are running into logical levels of support or resistance.

Many of these charts are messy at best.

Except the Mexican peso.

In fact, no currency has stood its ground during the dollar's parabolic advance like MXN.

From the Desk of Kimmy Sokoloff

The market chopped around the fist half of the day and rallied into the close.

It's still coiling for a bigger move, I'd like to think.