From the Desk of Steve Strazza @Sstrazza

Welcome to the 2 to 100 Club.

As many of you know, something we've been working on internally is using 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...

From the Desk of Kimmy Sokoloff

What a day...

$SPY came close to the 415 level I mentioned this morning and then traded below 410.

The recovery was quick due to tech bouncing.

The largest insider transaction on today’s Hot List is a Form 4 filing by Enviva Inc $EVA director John Bumgarner Jr.

Bumgarner reported a purchase worth roughly $1.8 million in EVA.

From the Desk of Kimmy Sokoloff

CPI data for April will be released at 8:30 a.m. ET.

I'll hold off on ideas until I see how the market reacts.

This is the video recording of the May 10, 2023, Inside Scoop Weekly Strategy Session.

From the Desk of Kimmy Sokoloff

The market was in a standstill today, awaiting the CPI print on Wednesday.

The indices held on.

Tomorrow might give a clearer picture near term.

The weakness in Small-caps has been well documented by now.

Look at the performance since the beginning of 2022.

While the Dow, S&P500 and other major indexes are pushing up near 52-week highs, the Russell2000 is down near 52-week lows.

The largest insider transaction on today’s list comes in a Form 4 filing by Ares Management.

The firm revealed a $7.5 million purchase in Frontier Communications Parent $FYBR.

From the Desk of Kimmy Sokoloff

$QQQ hit a fresh high yesterday, and this morning we're pulling back.

We could be in a standstill until tomorrow's CPI data. 

From the Desk of Steve Strazza @Sstrazza

Welcome to our latest Minor Leaguers report.

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, 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...

From the Desk of Steve Strazza @sstrazza and Alfonso Depablos @Alfcharts

This is one of our favorite bottom-up scans: Follow the Flow.

In this note, we simply create a universe of stocks that experienced the most unusual options activity — either bullish or bearish, but not both.

We utilize options experts, both internally and through our partnership with The TradeXchange. Then, we dig through the level 2 details and do all the work upfront for our clients.

Our goal is to isolate only those options market splashes that represent levered and high-conviction, directional bets.

We also weed out hedging activity and ensure there are no offsetting trades that either neutralize or cap the risk on these unusual options trades.

What remains is a list of stocks that large financial institutions are putting big money behind.

And they’re doing so for one reason only: because they think...

From the Desk of Kimmy Sokoloff

It was a real tug of war today for the indices.

$AMD really pushed through, moving more than 5%.