From the Desk of Steve Strazza @Sstrazza

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 The Junior 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.

From the Desk of Steve Strazza @Sstrazza.

Welcome back to Under the Hood, where we'll cover all the action for the two weeks ended July 7, 2024. This report is published bi-weekly, in rotation with The Minor Leaguers.

What we do here is analyze the most popular stocks during the week and find opportunities to either join in and ride these momentum names higher, or fade the crowd and bet against them.

We use a variety of sources to generate the list of most popular names.

There are so many new data sources available that all we need to do is organize and curate them in a way that shows us exactly what we want: a list of stocks that are seeing an unusual increase in investor interest.

Have you heard that this bull market is only being driven by Large-cap Tech?

Well, what if Small-cap Tech broke out of this multi-year base to new all-time highs?

What then?

Would it still be just Large-cap Tech?

Here's what the index looks like and, by definition, it excludes any of the so called "Mag7" and any other Mega-cap stocks that are perhaps helping to drive other indexes.

From the desk of Steve Strazza @Sstrazza

We held our July Monthly Strategy Session last week. Premium Members can access and rewatch it here.

Non-members can get a quick recap of the call simply by reading this post each month.

By focusing on long-term, monthly charts, the idea is to take a step back and put things into the context of their structural trends. This is easily one of our most valuable exercises as it forces us to put aside the day-to-day noise and simply examine markets from a “big-picture” point of view.

With that as our backdrop, let’s dive right in and discuss three of the most important charts and/or themes from this month’s call.

I don't know if you heard, but Jeff Bezos is reportedly selling $5 Billion worth of $AMZN stock.

And I'm being told how bearish this is and why we need to sell all our Amazon stock as well.

"He knows something, which is why he's selling so much of his stock"

In my experience, this bad take is only because some people think $5 Billion is a lot of money.

And maybe it is to you.

But $5 Billion is almost zero when it comes to someone like Jeff Bezos.

Bear with me for a second, let me put y'all on game.

With the S&P500 and Nasdaq closing at new all-time highs this week, the questions remain:

Is this sustainable?

Does the rally have legs?

Can this bull market continue?

Before I get to what I think is the most bullish thing that can possibly happen to this market, I have one sector I'd like to focus on quickly.

This is the S&P Industrials Index, which historically has the highest positive correlation with the S&P500 of all the S&P sectors.

Is this just a consolidation within an ongoing uptrend in a leadership group? Or is this a double top that's about to come tumbling down?

Stocks needed a correction.

And they got it.

Most stocks haven't made much progress since the middle of Q1. It's now July. They've been through a much needed digestion of prior gains.

Remember how epic that rally in Q4 was last year? And then it spilled over into January and early February this year.

But then came the correction.

A good look here is the Equally-weighted Nasdaq100 going out at new all-time highs on Friday, after 4 months of no progress:

From the desk of Steve Strazza @Sstrazza

Our International Hall of Famers list is composed of the 100 largest US-listed international stocks, or ADRs.

We've also sprinkled in some of the largest ADRs from countries that did not make the market cap cut. 

These stocks range from some well-known mega-cap multinationals such as Toyota Motor and Royal Dutch Shell to some large-cap global disruptors such as Sea Ltd and Shopify.

It's got all the big names and more–but only those that are based outside the US. You can find all the largest US stocks on our original Hall of Famers list.

The beauty of these scans is really in their simplicity.

We take the largest names each week and then apply technical filters in a way that the strongest stocks with the most momentum rise to the top.

Based on the market environment, we can also flip the scan on its head and filter for weakness.

Let's dive in and take a look at some of the most important stocks from around the world.

Here's this week's list:

Bitcoin is celebrating American Independence day by falling over $3000 in overnight trading.

That's over a 20% correction in less than a month.

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.

The rotation into Consumer Discretionary is happening.

And isn't this exactly what we've always seen in bull markets?

You buy the pull back in the offensive sectors during bull markets.

That's literally what the BTFD stands for.

This rotation into Consumer Discretionary has been exactly that - a BTFD moment.

Look at Tesla up 10% today and up 30% since we highlighted the trade right here 2 weeks ago.

Last night was the big LIVE Event that I host at the beginning of every month.

There is no better way to start a new month, and in this case a new quarter, than going one by one and identifying the direction of primary trends for the world's most important stocks and assets.

Just for perspective, here are the S&P500 and Nasdaq100 Quarterly Candlesticks making new all-time highs, again.

As you can see, these are the types of things you tend to see in bull markets. You do NOT see them in bear markets.