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...

Warren Buffett’s Berkshire Hathaway just turned up the volume on its stake in Sirius XM Holdings $SIRI with the purchase of an additional 1,557,702 shares, valued at a cool $42 million.

This move nudges Berkshire’s ownership stake from 32% to 32.5%, reaffirming Buffett’s confidence in the satellite radio company.

Here’s The Hot Corner, with data from October 18, 2024:

Escape velocity is defined as the minimum speed that is required for an object to free itself from the gravitational force exerted by a massive object.

I can't think of a better image to describe Bitcoin; after months of chopsolidation, the crypto market is finally gaining sufficient traction to push itself beyond the influence of the bear winter.

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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.

Most of us somehow know people who still consume basic cable television news.

It's like watching someone who's obese shop at the grocery store, buying all their cereal and "fat free" cookies. It's terrible. 

It's like seeing the alcoholic walk into the bar at noon and the bartender automatically knows to serve him the regular 2 shots and a beer.

The cable news people are the bartenders giving you the poison that you desire, at the worst possible time that they could possibly serve it to you.

It's like walking into a casino in Reno, NV to see people who have no money, are in terrible health, and have no business being inside a casino, sitting there all afternoon putting money into slot machines.

This is what the sick individuals who still consume basic cable news are doing to themselves.

It's sad to watch them struggle so much and slowly kill themselves. You may not see it easily on the outside, but their souls are dying or already dead on the inside. 

The good news is there are fewer and fewer of these suffering individuals left who are still poisoning themselves in these antiquated ways.

Look at the viewership...

This meme coin is up +3,000% YTD and it just broke out yet again.

Uranium stocks have been screaming higher and show no signs of slowing down.

As the AI Revolution demands more and more power, big technology companies are turning to nuclear energy.

The market is sending a very clear message... we (as investors) need to increase our exposure to uranium stocks.

Check out the recent performance from uranium stocks:

Each bubble's location is determined by its 10-day change on the x-axis, the trailing 3-month return on the y-axis, and the 14-day RSI is the size.

LEU, OKLO, and SMR are the stocks that stand out the most amongst their peers. Each of these 3 leaders is involved with nuclear energy for the AI boom.

The VanEck Uranium Energy ETF $NLR is decisively resolving a multi-decade base:

This fund holds large positions in the largest uranium stocks like Constellation Energy $CEG, Cameco $CCJ, and BWX Technologies $BWXT.

The breakout to new multi-decade highs is happening as breadth in the industry is expanding.

The GlobalX Uranium ETF $URA has a large Cameco...

You're overthinking the whole dollar and oil connection. 

As a trader, I love finding intermarket relationships to guide the way I look at markets. While those links matter, I have to remember that they aren’t set in stone. They change as the world changes. 

War and energy production can really shake up these correlations.

In early 2022, the correlation between the dollar and oil hit a 20-year high.

That year, the Russia-Ukraine war had just begun, and there was a rush into the US dollar. I like to call the dollar a "panic currency" because when things get tough, people flock to it for safety. 

In 2022, the war caused a huge spike in energy prices, and the dollar rose along with it.

Right now, with so much uncertainty in the world—between wars and an unclear future with the election right around the corner—it makes sense that the dollar would move alongside oil. 

But it won’t last forever.

Notice the strong and consistent negative correlation from 2002 until recently.

And then notice how it pinged...

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

1. New position in ITB.
2. No adjustments are needed today.
3. Exited  XLB , XLC, SMH, & XLP at profit targets!
4. Current status of open campaigns.
5. Volatility Snapshot.

Let’s dig in!

Perhaps this is just my own personal Waterloo, but there seems to be history of market turbulence whenever I travel and am away from my main trading station.

Next week will be a travel week for me. I'll be attending Stocktoberfest in Coronado Island, back home for one day in the middle of the week, then back on the road heading to Seattle. And this being October, when "surprises" seem most often to occur, I'm a little on edge about my mostly long-leaning portfolio.

So today's trade is a simple bearish bet in a weak name that may offer some cushion if things do get slippery next week.

Peloton Interactive $PTON is up over 10% this morning and exploding higher from its range!

Our 11/15 $7 calls are surging with it. They are currently trading for over $0.50, which is a triple from where we got in.

This is the perfect moment to execute our strategy—sell half the position, lock in some well-earned gains, and ride the rest into earnings risk-free.

This pre-earnings trade is coming together as planned, and the best part? The stock is just breaking out, so we think there’s plenty left in the tank.

If we break and hold above VWAP this one should keep running for us and be a monster winner. It’s already a multi-bagger.

PTON earnings are October 31st. I’ll...

This is why we can't have nice things...

Did you notice that the journalists are catching on to these trends that have been in place for so long?

And not just any journalists. The most reliable contrarian indicators in the history of financial publications are telling you that the U.S. is the Envy of the World and they expect it to keep going - even after a decade and a half of this...

Here's the exact quote:

"The American economy has left other rich countries in the dust. Expect that to continue" - The Economist

So cringe.

Those of you who have been following along know how much money we've all made by using this publication as a contrarian indicator.

Not only are they journalists - which are a great fade to begin with.

But they are journalists parading around as economists.

Double whammy. 

We've discussed this at length over the years. Here's...

From the desk of Steve Strazza @Sstrazza

Our Hall of Famers list is composed of the 150 largest US-based stocks.

These stocks range from the mega-cap growth behemoths like Apple and Microsoft – with market caps in excess of $2T – to some of the new-age large-cap disruptors such as Moderna, Square, and Snap.

It has all the big names and more.

It doesn’t include ADRs or any stock not domiciled in the US. But don’t worry; we developed a separate universe for that. Click here to check it out.

The Hall of Famers is simple.

We take our list of 150 names and then apply our technical filters so the strongest stocks with the most momentum rise to the top.

Let’s dive right in and check out what these big boys are up to.

Here’s this week’s list:

*Click table to enlarge view

We filter out any laggards that are down -5% or more relative to the S&P 500 over the trailing month.

Then...

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

1. New position in IWM.
2. No adjustments are needed today.
3. Exited XHB and EEM at Profit Targets.
4. Current status of open campaigns.
5. Volatility Snapshot.

Let’s dig in!

The most significant insider activity today comes from Control Empresarial de Capitales S.A., the Mexican investment firm led by Carlos Slim.

According to a new Form 4 filing, the firm acquired 1,002,000 shares in PBF Energy $PBF, valued at $31.8 million.

This is Control Empresarial’s fourth major purchase in the last month, totaling nearly $55.9 million.

With these buys, Control Empresarial now owns around 20% of PBF and is the largest shareholder in the company, holding about as many shares as Blackrock and Vanguard combined.

Here’s The Hot Corner, with data from October 17, 2024:

For the past several years, China has been uninvestable.

Then we got one of the most epic rallies in China’s stock market history…

And then we were so extended that it still felt uninvestable. But for a very different reason.

Earlier this month on the morning show, Spencer asked: “how do you even buy these stocks here?”

I understood his frustration. Sometimes, the best trends are the hardest to get into.

If you took a shot and bought China earlier this month, you’re already in a significant drawdown. 

If you have the right timeframe, I think you’ll be fine, but you never want to chase in these situations. After a momentum thrust, always expect a little backing and filling, or corrective action. And be prepared to pounce on it.

It...