From the Desk of Steve Strazza @Sstrazza

Welcome to The 2 to 100 Club.

As most of you know, we use 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 during their journey to becoming the market...

From the Desk of Ian Culley @IanCulley

Last week’s tactical setups are heading toward our targets as G10 currencies lose ground against a rising dollar.

If you let the pound or kiwi trade pass, fear not.

The US dollar/Canadian dollar pair is entering our wheelhouse…

Check out the greenback-loonie challenging a key retracement and former resistance level at approximately 1.36:

I placed a stop order above last Friday’s high of 1.3606. 

A decisive upside resolution above that level puts the USD/CAD in play with a target of 1.3850.

If my order fills, I’ll play this one tight since the dollar-cad trades in the middle of an eighteen-month range. 

I’ll...

There are 3 big divergences right now that I think we want to keep a close eye on.

The first ones comes straight from Papa Dow.

We're looking at a classic Dow Theory Divergence between the Dow Jones Industrial Average and Dow Jones Transportation Average.

We've seen these sorts of things before major market tops. You saw it in 2000, you saw it in 2008, you saw it in 2015 and you saw it in 2020.

In this particular case, you're seeing new highs from the Dow Industrials but lower highs in the Transports:

What was once the world's largest company by market-cap has lost half a trillion dollars in value, in what feels like a split of a second.

Boy was that was fast.

Half a Trilly. Gone. Just like that.

So just to put things in perspective, for those of you who might not realize how much money that amounts to, there are only 13 companies on the planet worth over half a trillion dollars.

Apple lost half a trillion in value in just a few months.

Here it is making new 28-month lows today relative to the S&P500:

These are the registration details for our Live Monthly Candlestick Strategy Session for Premium Members of All Star Charts.

This month’s Video Conference Call will be held on Monday April 1st @ 6PM ET. As always, if you cannot make the call live, the video and slides will be archived and published here along with every other live call since 2015.

Here are the details for Monday evening:

One of my favorite setups is when you have a major "top" formation, that doesn't actually turn into a reversal pattern and top for the market.

A recent example was in shares of Disney.

If you guys recall, this one looked like a major top, sentiment was down in the dumps, and we were buyers at 80.

Here we are with Disney at 120 and hitting new 52-week highs.

I gotta tell you, this setup in Energy looks exactly like that.

Look at this chart below - it's got all the hallmarks of a top:

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.

To make the cut for our Minor Leaguers list now, 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...

From the Desk of Ian Culley @IanCulley

Pop the champagne!

Gold reached new all-time highs. 

Now, whether we consider the shiny yellow rock a viable investment is another story.

You know I’m bullish…  

Yet I can’t overlook silver's lack of participation.

We're getting into Squeeze Season.

The stock market (as measured by the indexes) continues to trek higher, speculative fervor keeps building (as measured by what's happening in crypto), and these forces are combining to make it a dangerous environment to be caught short in.

And if you're short a name that already has a high short interest? Look out!

So naturally, today's trade is a play on punishing the stubborn shorts in a particular stock that look like they are on the verge of getting epically squeezed.

In today's Flow Show on Stock Market TV, me and Strazza get into why we love buying short-dated calls in Carvana $CVNA:

And here's the chart that we are leaning into:

Here's the Play:

That was the highest weekly close for the US Dollar Index since early November.

The trend has been higher for the US Dollar throughout the entire 1st quarter of 2024.

Remember, the Dollar bottomed towards the end of December in 2023.

So how much higher can the Dollar go?

What we're seeing happening in Bitcoin right now is demand trying to absorb the overwhelming amount of supply that there is up at these prices.

We know from prior attempts a couple of years ago that just below 70,000, there is more selling pressure than buying pressure.

It's just math, there has been more supply than demand at these prices.

Here's what Bitcoin looks like over time:

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.