In today’s Daily Digest, we’ll review the following:

1. No new positions today.
2. Defensive adjustment to ITB position.
3. No exits since the last report.
4. Current status of open campaigns.
5. Volatility Snapshot.

Let’s dig in!

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...

Today's standout insider transaction comes through a 13G filing by AllianceBernstein L.P., a global investment management firm overseeing more than $700 billion in assets.

AllianceBernstein increased its passive stake in Trex Company Inc $TREX from 6.50% to 10.10%.

Here’s The Hot Corner, with data from January 7, 2025:

This significant uptick in ownership signals strong confidence in the company's future prospects.

We're back today on The Morning Show only on Stock Market TV. We're live every weekday from 8:30AM - 10AM ET.

Do you want to be prepared for the day ahead? Do you want to know what's driving these market moves? Come hang out with us today as we sit down with special Guest Ryan Detrick, Chief Market Strategist at Carson Group.

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Today's number is... 100%

Our US Dollar Long Term Percent Bullish breadth reading just reached 100%.

Here’s the chart:

(right-click and open image in new tab to zoom in)

Let's break down what it shows:

The blue line in the top panel shows the price of the US Dollar index.

The black line in the bottom panel represents US Dollar Long Term Percent Bullish breadth reading, which includes 15 key currency pairs.

To calculate the US Dollar Long Term Percent Bullish, we use two criteria:

1. The closing price of the currency pair must be above its 200-day moving average.
2. The direction of the 200-day moving average must be rising.

After assessing these criteria for all 15 currencies, we combine the results to obtain a percentage figure.

The Takeaway: The US dollar has been ripping higher over the past quarter, and when we look beneath the surface, we see healthy breadth readings and confirmation of strength as our US Dollar Long Term Percent Bullish breadth reading just reached 100...

The big standout here is how growth is persistently green while value has been red.

Until this changes, it's difficult to be overweight value relative to growth.

Tracking the ratio between the Large Cap Growth ETF $IWF and Large Cap Value $IWD, it has just broken to new all time highs. This suggests growth could be setting up for further outperformance. 

We've been talking about the relentless strength out of Argentina $ARGT for months now. But an underdog on the global ETF stage right now is the United Arab Emirates $UAE.

On our Power Rankings score, it's actually stronger than the S&P 500 right now.

The big story here is energy. If crude oil begins working higher, as it's done over the last month, this is a significant tailwind for this ETF.

Here's one thing we know for a fact about the market:

In order to have a bear market, or a correction of any kind, you need the prices of stocks to be falling.

Fact. 

Without the prices of stocks falling, you cannot possibly have a bear market, or any kind of correction at all.

That's just how math works. 

So if one would take the time to count how many stocks are actually going down in price, one would have a better understanding as to whether or not stocks are correcting.

See how that works?

And while the list of new 52-week lows is still nonexistent, that doesn't mean stock prices aren't falling. So we want to look at shorter-term time horizons to see if we're seeing an increase in the number of stocks falling in price.

Currently, we are not seeing any expansion at all in the number of stocks whose prices are falling. Here are Large-caps, Mid-caps and Small-caps all within the same range of new lows that they've been in throughout this bull market:

We'll know if we're in a correction. You'll be able to just count and see for yourself.

And you'll see the list of new 1-month lows expanding, new 3-month...

It’s hard to ignore the strength coming out of Argentina this past year.

The MSCI Argentina ETF $ARGT has been an absolute beast, finishing 2024 as the best-performing country ETF, with a jaw-dropping gain of 63.50%.

The series of higher highs and higher lows remains firmly intact, and it doesn’t look like the trend will change anytime soon.

Javier Milei’s ascent to the presidency in November 2023 has been a key driving force behind this recent surge.

His free-market policies, emphasis on entrepreneurship, and commitment to economic growth have been a game-changer, attracting investor attention from every corner of the globe.

Investors with exposure to Argentina have been richly rewarded by the market as ARGT...

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. 

Clearly, we spend a lot of time identifying and writing about leading stocks every week, via multiple reports.

...

In today’s Daily Digest, we’ll review the following:

1. New position in XLC.
2. No adjustments are needed today.
3. No exits since the last report.
4. Current status of open campaigns.
5. Volatility Snapshot.

Let’s dig in!

If Semiconductors actually completed this massive top relative to the S&P500 then bull market cancelled.

Period.

For me, it was that simple. This is one of the largest and most important industry groups in America, and the rest of the world for that matter.

Losing Semi's would be like losing one of your legs. You wouldn't be able to walk anymore. 

This was a major topic of conversation last night during our first LIVE Conference Call of the year. You cannot miss this one. Click Here to access the replay,...

In a recently filed Periodic Transaction Report, Senator Shelley Capito of West Virginia disclosed stock purchases in General Electric Company $GE and Broadcom Inc $AVGO.

The transactions, each valued between $1,000 and $15,000, signal potential confidence in these market-leading companies.

Last month, Broadcom had its best single day rally in history, breaking to new all time highs following earnings.

Price is currently consolidating in a tight pattern, digesting its gains.

The path of least resistance is clearly higher and we believe it is just a matter of time before AVGO continues its ascent.

Here’s The Hot Corner, with data from January 6, 2025:

Last but not least, Pleasant Lake Partners LLC filed a Form 4 for Tile Shop Holdings $TTSH revealing a purchase of $822,056.

Today's number is... 4

The S&P 500 index is holding up well as it is only 1.89% below its all-time high; however, when we take a closer look at the individual stocks, we can see that they have begun to dip below 4 key timeframe highs that we have identified as important.

Here’s the chart:

(right-click and open image in new tab to zoom in)

Let's first break down what the chart shows:

The blue line in the top panel shows the price of the S&P 500 index.

In the bottom panel:

In black is the % of S&P 500 stocks that are above their 2018 highest high

In blue is the % of S&P 500 stocks that are above their 2021 highest high

In gray is the % of S&P 500 stocks that are above their December 2023 highest high

In red is the % of S&P 500 stocks that are above their 2024 Q1 highest high

The Takeaway: This chart is a great way to visualize the current market environment and track what's happening beneath the surface.

What...

I’ve been incredibly lucky to learn first-hand from some of the top traders and technicians. 

I’ve gained a deep understanding of VWAP and how to anchor it from my mentor and friend, Brian Shannon. 

He created the anchored volume weighted average price as an indicator and is the VWAP master as far as I’m concerned.

It’s my single favorite tool. I’m using it all day every day. 

In order to use VWAP to gain an edge in the market, you have to know where to anchor it. It’s the most important part. 

I always have mine anchored to January 1st. 

I also anchor them at key highs and lows. For example, most of my charts have VWAPs from the 2022 bear market lows as well as the 2021 bull market highs. 

I anchor them from big earnings reactions and news events. These are always good. 

People keep telling us, "2024 was the year of artificial intelligence." 

That's bull shit, and we have the data to prove it. Last year was a year for the gold bugs. 🥳

Here's an overview of how each asset class performed in 2024:

Quantum computing stocks have been on an absolute tear, making this group one to watch closely as we head into 2025.

These companies are pushing the boundaries of what’s possible, solving problems and processing workflows traditional computers never could.

From AI and cybersecurity to drug discovery, quantum computing has emerged as a critical driver of innovation. And with plenty of public companies operating in the space, quantum stocks offer an exciting investment opportunity.

IonQ $IONQ stands out as a leader in this revolution, fueling a surge of investor enthusiasm.

I remember when Sam highlighted it in our Freshly Squeezed report back in March last year.

What started as a promising pick has since turned into a major market leader.

The stock has been...

Do you remember when BlackBerry released the 7200 series in 2003?

It was a massive moment in the history of technology despite looking like a modern handheld calculator.

The commercial launch of this device greatly benefited shareholders. $BB stock rallied over 10,000% from the 2002 low to the 2008 peak.

In Q4 2003, the company reported blowout earnings, which caused the stock to have its best earnings reaction ever.

It was reminiscent of when Nvidia added $200B in market cap after its historic Q2 2023 earnings event.

Unfortunately (for $BB shareholders), they dropped the ball, and Apple blew BlackBerry out of the water with the launch of the iPhone.

Since then, it has completely transformed into a company that's hard to recognize if you formally knew it as "the phone company" decades ago.

BlackBerry is a software company now.

The most significant opportunity lies in its QNX platform, a real-time operating system used in over 255 million vehicles globally.

Auto manufacturing...