High Beta outperforming Low Volatility stocks is usually something we see in healthy market environments.
This year, however, High Beta has been struggling to make any progress vs their Low Volatility counterparts.
"Beta" is essentially how volatile a stock is relative to its benchmark.
So High Beta think $SMCI, $NVDA, $AMD, $AVGO and others. You have half the S&P500 High Beta Index in Technology and another 17% in Consumer Discretionary.
In contrast, for Low Volatility think Berkshire Hathaway, Coca-Cola, Visa, Procter & Gamble. You'll find a lot of Financials, Consumer Staples, Utilities and Industrials in this group.
Here is the ratio of High Beta vs Low Volatility breaking down to the lowest levels all year.
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.
Since this summer, safe haven assets have been catching a bid and outperforming across the board.
Investors are paying attention to growth indicators like ISM and PMI data. Other investors are looking at CPI and paying extra-close attention to the Fed…
Here's the US Core Inflation Rate along with the 7-10 Year Treasury Bond ETF $IEF. Since inflation peaked and rolled over in 2022, bonds have been building a massive base:
We love our bottoms-up scans here at All Star Charts. We tend to get really creative when making new universes as we want to be sure they will deliver us the best opportunities the market has to offer.
However, when it comes to this one, it couldn't be any simpler!
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 stocks.
Welcome to TheJunior Hall of Famers.
This scan is composed of the next 150 largest stocks by market cap, those that come after the top 150 and are thus covered by the Hall of Famers universe. Many of these names will someday graduate and join our original Hall Of Famers list. The idea here is to catch these big trends as early on as possible.
There is no need to overcomplicate things. Market cap is a quality filter at the end of the day. It only grows if price is rising. That's good enough for us.
We're now over 2 years into a bull market, so you know what that means?
It means correlations have come off a lot.
Keep in mind that when volatility spikes, correlations among S&P500 components shoot up to one.
It seems like they all move together, either up or down, depending on how the day goes.
We saw that in 2022 and we most certainly saw that during Covid.
But now that we're 2 years into this bull market, correlations have come off so much that it is easier than ever to find BOTH winners and losers out there.
This is NOT an "everything moves together" market. It's actually the furthest thing from it.
Take a look at SharkNinja, for example, making new all-time highs again this month.
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.
The biotech market has a great divide between the haves and have-nots. Some stocks have experienced tremendous markup phases, while others can't seem to get out of the doghouse.
Today, we're covering a biotech stock that has rallied nearly 200% this year.
Despite this rally, the short sellers have continued to add to their positions and are close to carrying their largest short position ever.
With the stock coiling at a shelf of former highs from last summer, we're betting the short sellers are on the verge of unwinding their positions and sparking a short squeeze.