November marks the beginning of the best three-month period of the year for stocks and a brand-new NBA season. Moreover, the sportsbooks have priced in my local OKC Thunder as the Western Conference champions.
It's a fantastic time to be alive.
Now is also a great time to take a step back and assess the underlying trends.
Earlier this year, we outlined our Fab 5 Charts for a 2024 equity bull market.
One of the five key groups we selected was homebuilders, which have been on an absolute tear:
Welcome to TheJunior International Hall of Famers.
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-listed international stocks, or ADRs.
This scan is composed of the next 100 largest stocks by market cap, those that come after the top 100 and are thus covered by the International Hall of Famers universe.
Many of these names will someday graduate and join our original International Hall Of Famers list. The idea here is to catch these big trends as early on as possible.
Let’s dive right in and check out what these future big boys are up to.
This is our Junior International Hall of Famers list:
The market keeps rewarding investors for buying some of Wall Street's most hated stocks.
We're getting buy signals from biotechnology and crypto stocks, which tends to happen in healthy market environments.
With this in mind, we're going back to the well and buying a biotech stock with nearly 1/3 of the float sold short and a double-digit days-to-cover ratio.
The stock we're buying is named after what was once an important ancient trade center in modern-day Turkey.
Let's talk about how we're playing this short squeeze:
We all know how dreadful it can be to get through airport security.
Clear Secure is trying to be the remedy by using biometric data to provide identity verification and expedite security at airports and other venues.
Last quarter, the stock rallied over 20% following its earnings report and has nearly doubled since.
Despite the stock's strong performance and highest price since 2021, the bears are still betting against it. The amount of shares held short is near its highest level in history.
The market keeps squeezing short sellers out of their biotech positions and rewarding bulls with big breakouts.
Knowing this, our strategy is simple. We want to keep buying the best-looking and most heavily-shorted biotech stocks.
Today, we're covering one that has rallied nearly 200% since late last year. Despite this extreme upside momentum, the stock still has a massive short interest.
With the stock resolving a multi-year accumulation pattern, we think this short squeeze has plenty of room to run. To get back to the all-time highs from just a few years ago, it would require about a 10x.
We're looking for something much smaller and quicker for now, but you never know!
Let's talk about how we're trading our latest Freshly Squeezed setup.
Last week, we discussed China and Gold futures as potential catalysts for resolving a multi-decade basing pattern in Dr. Copper.
If we're in an environment where Copper futures are printing fresh all-time highs, then we should spend some time identifying opportunities in the equities market that benefit from rising base and industrial metal prices globally.
Over the last 6-months, the Steel $SLX, Copper $COPX, and Metals and Mining $XME ETFs have underperformed the S&P 500:
When it comes to our short-squeeze universe, the best trades tend to come from the junkiest stocks.
In late 2022, we went dumpster diving for the most beat-up and heavily shorted stocks in the market and had some big winners. We were at the depths of the bear cycle, and the charts looked terrible. They were supposed to be zeros, but they weren't.
Just look at how Carvana $CVNA has performed since we were buying it at 8.25 almost 2-years ago.
Another junky group that has been working recently is the Marine Shipper industry.
Our custom Marine Shipping Index is on the verge of reclaiming the 61.8% retracement of its prior drawdown: