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From the Desk of Steve Strazza @Sstrazza

Welcome to The 2 to 100 Club.

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...

Below is the 5th ASC Mastermind Lab Course. These are special videos that will be made available throughout the duration of the 12-week course featuring conversations with professionals from across Wall Street discussing topics in their expertise. 

In our last Mastermind Lab, I spoke with Steve Strazza about momentum thrusts. This time, I wanted to talk with a portfolio manager who uses momentum as part of his strategy. Enter Dan Russo, Portfolio Manager at Potomac Fund. 

Dan broke down for us a simple way of implementing momentum into your portfolio management, how he protects against drawdowns while using momentum, and what he sees as the biggest challenges of using momentum. 

Enjoy my conversation with Dan Russo.

Bitcoin Dominance just hit new multi-year highs this week.

In other words, the market-cap of bitcoin as a percentage of total crypto market-cap is the highest it's been in years.

What this means is that the value of Bitcoin today (~ $1.2 Trillion) represents 58% of the value of all the Cryptocurrencies in the world (~ $2.1 Trillion).

And the trend here of Bitcoin continuing to eat into market share continues to move up and to the right:

Meanwhile, Microstrategy is hitting new highs relative to Bitcoin since it first started buying Bitcoin back in the Fall of 2020.

Microstrategy is the 5th largest owner of Bitcoin, holding about 1/4 of the position of Bitcoin's creator Satoshi Nakamoto. 

Just to clear up any confusion, I am absolutely NOT Satoshi. I know it would be a lot cooler if I was. But I am not. Sorry to disappoint. 

Now, what I love most about the Microstrategy $MSTR hitting new highs relative to BTC, and also hitting new All-time highs on an absolute basis, is that the "fundamental" guys can't wrap their heads around the premium that $MSTR trades relative to its total ownership of BTC.

People tell me that...

From the Desk of Steve Strazza @Sstrazza

When investing in the stock market, we always want to approach it as "a market of stocks."

Regardless of the environment, there are always stocks showing leadership and trending higher.

We may have to look harder to identify them depending on current market conditions. But there are always stocks that are going up.

The same can be said for weak stocks. Regardless of the environment, there are always stocks that are going down, too. 

We already have multiple scans focusing on stocks making all-time highs, such as Hall of Famers, Minor Leaguers, and the 2 to 100 Club.

We filter these universes for stocks that are exhibiting the best momentum and relative strength characteristics. 

Setups that will turn into 5x, 10x, and 20x winners during earnings season are forming right now.

You're seeing that normal directionless consolidation that develops before explosive moves.

Our proprietary Breakout Multiplier System is specially designed to identify these stocks before volatility begins to expand.

The time to enter is now.

...

A couple of weeks ago, we talked about Silver futures attempting to emerge from a multi-year accumulation pattern and potentially retesting the former all-time high.

Last week,  Silver made a new multi-decade high in absolute terms and broke a multi-year downtrend line relative to Gold. 

And if the 47th element is about to blast off, we should look closer at the Junior Silver Miners.

But first, check out this chart of the Silver/Gold ratio:

Below is the 4th ASC Mastermind Lab Course. These are special videos that will be made available throughout the duration of the 12-week course featuring conversations with professionals from across Wall Street discussing topics in their expertise. 

The theme of ASC Mastermind Week 2 is momentum trading, and why it works. So naturally it made sense for me to talk to All Star Charts Director of Research Steve Strazza. Steve uses momentum as much in his day-to-day as I do. 

The main concept Steve wanted to hammer home is momentum thrusts, what they are, when they happen, the different types with examples, and how to analyze them. 

Enjoy this Mastermind Lab Course on momentum.

From the Desk of Steve Strazza @Sstrazza

Welcome to The Minor Leaguers.

We've had some great trades come out of this small-cap-focused column since we launched it back in 2020 and started rotating it with our flagship bottom-up scan, Under the Hood.

For the first year or so, we focused only on Russell 2000 stocks with a market cap between $1 and $2B.

That was fun, but we wanted to branch out a bit and allow some new stocks to find their way onto our list.

We expanded our universe to include some mid-caps.

Nowadays, to make the cut for our Minor Leaguers list, a company must have a market cap between $1 and $4B.

And it doesn't have to be a Russell component — it can be any US-listed equity. With participation expanding around the globe, we want all those ADRs in our universe.

The same price and liquidity filters are applied. Then, as always, we sort by proximity to new highs in order to focus...

The last time the yield curve inverted, they promised us a recession, maybe even a market crash if we're lucky!

Instead all we got was a historic bull market, including back to back years of 20%+ returns in the S&P500. 

You see, this is what happened AFTER the yield curve inverted.

And why is this such a big deal? 

There's this really hilarious function in the way humans think. A large population of economists and wall street sell side analysts get very sad when the yield of one bond pays more than the yield of another.

It's this really weird thing in the markets that gets these folks very afraid, and so they want their customers to be afraid too. 

And if these economists and sell side analysts do their jobs right, as they have for many years, they're loyal following of sheep will be sure to sell their stocks and run to cash just before a historic bull market.

And that, of course, is exactly what happened over the past couple of years, as investors piled into more money market funds than any other time in history, only for that to be one of the worst possible decisions any investor could have made at any point since...

From the Desk of Steve Strazza @Sstrazza

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.

This is the weekly post that aggregates all the charts we put together throughout the week and organizes them all into one, easy to flip through deck.

When you go back and study bull markets and all the healthiest environments for stocks throughout the past, do you know what you'll find?

Historically, Consumer Staples stocks underperform during the healthiest market environments.

So with that in mind, notice how Consumer Staples on an equally-weighted basis just closed at NEW ALL-TIME LOWS relative to the equally-weighted S&P500:

Money is fleeing the defensive nature of Consumer Staples and continuing to rotate into more offensive areas of the market. 

Take Financials for example. Here is the equally-weighted Financials Index completing a multi-year base and closing once again at new all-time highs.

The equally-weighted Financials Index eliminates the massive weightings in Berkshire Hathaway, JP Morgan, Bank of America, Goldman Sachs and others.

This chart above shows Financials Equally-weighted making new all-time highs, reiterating the broad strength in Financials, which is typical in the middle of a bull market.

Meanwhile, the Communications Index on an equally-weighted basis is making new multi-year highs as well. 

But for me, it's the market-...