Here at Breakout Multiplier, we're all about booking big gains—and our Peloton $PTON play just hit it out of the park.

A month ago, we scooped up the 11/15 $7 calls for a cool $0.16.

By October 18th, we'd already sold half for a triple. This set us up to let the rest ride into earnings, while already securing a profit on the full position.

In other words, if the remaining calls went to zero (which they did not), we still made money on this trade.

Today, Peloton's ripping, up over 30% on the heels of earnings, and our calls are going through the roof, trading as high as $2.00 in today’s session.

That’s right—a 12-bagger, a whopping 1,000%+ return!

Here's the replay and chartbook from today's stream. Note that we do these videos live every Thursday at 11 a.m. ET, and I answer questions in the chat room.

Be sure to join us and maximize your return potential.  

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

1. New position in XOP.
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!

From the Desk of Steve Strazza @Sstrazza

Welcome to The Junior 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:

Click table to enlarge view

And here’s how we arrived at it…

We removed laggards which are down 5% or more relative to the ACWI Ex. U.S. Index $ACWX over the trailing...

Why does it seem like every time I remind a group of people about the underperformance from Technology stocks, they're always surprised to hear it.

It's like they don't even know that Large-cap Tech stocks have been underperforming for most of the year, and Small-cap Tech has been underperforming for 18 months.

Is this not common knowledge?

Large-cap Tech was actually down in Q3. And then it started out Q4 with a flat September. 

Small-cap Tech is somehow down for all of 2024, despite the Small-cap Russell2000 Index being up double digits this year.

That's the exact definition of underperformance. 

Now, let's keep in mind what Technology even is...

The S&P500 Technology Index includes stocks like Apple, Microsoft and Nvidia as its largest components.

Google and Meta are NOT in Technology. They're both in the Communications index along with Netflix.

Large-cap Communications are actually the best performing sector so far in 2024. This group is very different than "Tech":

Communications are outperforming the S&P500, Nasdaq100 and even Utilities (which became cool this year). 

When...

In a standout insider transaction, Control Empresarial de Capitales S.A., the investment powerhouse owned by Carlos Slim, disclosed another hefty purchase of PBF Energy Inc $PBF. 

According to a fresh Form 4 filing, Slim’s firm shelled out an impressive $11,657,328 to boost its stake to more than 21.50%.

Even though PBF doesn't look good from a technical perspective, insider moves from major players can reveal a lot.

So, it makes sense to keep an eye on PBF, waiting patiently for the trend to reverse in our favor.

Here’s The Hot Corner, with data from October 30, 2024:

Two directors of The Bancorp Inc $TBBK revealed purchases of their own stock, totaling $477,376.

In addition to that, former director and top individual shareholder James Ayers reported an acquisition of 4,000 shares of FB Financial Corporation $FBK in its latest Form 4 filing.

We need to talk about SoundHound.

This setup was so nice that we bought the calls twice.

As it turns out, it was the right move. We sold the double yesterday.

But, we’ve got a lot of questions about this one along the way. And the truth is, nothing we did here was out of the ordinary. This sort of scenario will happen a lot with the Breakout Multiplier system, so it’s important we discuss it.

I put on trades that go to zero all the time. 

I am unaffected by these losers. In fact, when I see zeros stacking up, I get excited. I know I’m that much closer to a big winner. 

It’s a game of numbers. I’ve been doing this for a long time.

But the way I lose is even more blatant sometimes.

I will put on the same exact trade over and over again, until it works, or the setup is invalidated.

This almost always boils down to a matter of timing. When I find myself putting on the same...

As we inch closer to the election, the "change-of-narrative" plays still hold interest to me -- both as hedges to my overall bullish positioning, and as alpha generators.

Today's trade is in a "junky" solar name that has gotten beaten down with the rest of it's sector as investors are pricing in a Trump victory that would be perceived as bearish for the Solar Industry.

But what if a Trump victory results in an inverse "sell the news" type of event and the selling pressure gets lifted from this sector? Or, better yet, what if the pollsters are wrong (it's happened before!) and Harris comes out victorious? Wouldn't that result in an immediate narrative shift for this sector? And if that happens, junky stocks like today's trade could potentially offer a tremendous amount of alpha.

With the election right around the corner, we think banks are offering an extra spicy setup.

Bank of America $BAC is the perfect vehicle to express a bullish thesis on this theme.

The primary trend has recently shifted higher, and price has been consolidating in a triangle since it peaked back in July.

Our volatility squeeze indicator (weekly) has crossed higher off an extreme low, suggesting some big momentum could be coming.

If we get a valid resolution from this multi-week coil, the follow-through move should earn us a quick double.

And then we’ll have the election reaction which will dictate whether we book a big gain on the remaining position.

That is why we are only going out to December with these calls. It gives us about three weeks to get the move we're looking for, and allows the election to be the catalyst for it before the theta decay window kicks in.

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

1. No new trades today.
2. Adjustment to GLD 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...

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:

GIC Private Ltd's recent 13G filing reveals a significant increase in its stake in New Oriental Education & Technology Group $EDU, from 5.03% to 7.47%.

Singapore's sovereign wealth fund focuses on a long-term, diversified investment strategy across sectors like technology, financials, real estate, and healthcare.

Here’s The Hot Corner, with data from October 29, 2024:

Yesterday, director William Fisher of Winnebago Industries $WGO revealed a purchase of $109,620.

Today, the WGO president and CEO reported an acquisition of 2,500 shares.

With the stock falling steadily all year, these small purchases feel more like “vote of confidence” buys than anything. 

I have the pleasure of staying at a place right next to ocean. It really is lovely.
 
I've talked a lot with the guys on the team and they all say the same thing.
 
As a trader, it's so valuable to spend time looking at the ocean. It gives you a tangible appreciation for something larger than yourself.
 
The waves of the ocean have massaged the shore long before we got here and will continue to do so long after we've gone. As such, we all understand that we can't stop the force of the ocean.
 
Markets are the exact same.
 
Some traders get fixated on the idea that there are secret players manipulating the order flow. But that's like trying to blame a group of swimmers for controlling the tides. The market, like the ocean, is a force of nature driven by millions of participants – from retail traders to institutions, each adding their drop to the vast expanse of liquidity. No single entity can truly control these waters.

But even if they could, they're certainly not out to get you.

This morning, I decided to take a plunge into the water. My mind had been stuck in charts – an analytical myopia that can sometimes...

Bitcoin is up +17% this month.

The action down the cap scale is looking awfully reminiscent of an altcoin season.

These things are pumping.

So I'm sure you're asking the question.

Is it finally time to once again begin YOLOing these cryptos?

Bitcoin is flirting with a historic breakout, sitting just a few bucks shy of fresh all-time highs.

Everywhere I look, I’m seeing the perfect setup for a new leg higher from crypto.

Risk appetite is heating up across the board, and the strongest tokens are leaving the station. 

We have a wide-variety of vehicles to choose from to play this bullish thesis.

Whether you look at Bitcoin, Dogecoin, or the crypto miners, they are all offering asymmetrical risk vs reward opportunities.

And if we're talking about catch-up trades, Marathon Digital Holdings $MARA is the one to watch.

Just look how clean this chart is.

Below is the 7th 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 Jason Perz about the relationship between bonds, commodities, and currencies. This time, I wanted to bring the conversation back to the stock market. Enter Todd Sohn, ETF & Technical Strategist at Strategas Securities.

Todd and I discussed the ETF market at length, how it's evolved in recent years, and its future. We also discussed a variety of different intermarket analysis techniques that incorporate ETFs.

I hope you enjoy my conversation with Todd Sohn.