From the Desk of Steve Strazza @Sstrazza and Alfonso Depablos @AlfCharts
With the stock market trading sideways for the past two months, we're still finding pockets of strength and individual names that offer favorable risk-reward opportunities.
While we do want to be more selective through this corrective phase, we also don't want to miss anything. The bull market is still alive and well. This kind of sector rotation and digestion of gains is nothing out of the ordinary. While it plays its course, we want to continue to bet on leaders.
Let's dive in and check out some of our favorite setups from our Hot Corner universe this week.
With the stock market trading sideways for the past two months, we’re still finding pockets of strength and individual names that offer favorable risk-reward opportunities.
While we do want to be more selective through this corrective phase, we also don’t want to miss anything. The bull market is still alive and well. This kind of sector rotation and digestion of gains is nothing out of the ordinary. While it plays its course, we want to continue to bet on leaders.
Let’s dive in and check out some of our favorite setups from our Hot Corner universe this week.
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...
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