Expert technical analysis of financial markets by JC Parets
From the Desk of Steve Strazza and Alfonso Depablos
Today’s most significant insider transaction report is another Form 4 filing by Warren Buffett’s Berkshire Hathaway $BRK.A.
Buffett continues to build his position in Occidental Petroleum $OXY, as he disclosed an additional purchase worth roughly $246 million.
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 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 Retail, Solar, etc.
Then, like any good technician, we filter the list down to those closest to new highs.
This allows the cream of these strong groups to rise to the top and helps streamline our mission to identify technical breakouts in the top-performing stocks.
From the Desk of Steve Strazza and Alfonso Depablos
The most significant transaction on today’s list comes in a Form 4 filing by Texas Capital Bancshares $TCBI director Robert Stallings.
Stallings reported a purchase of TCBI shares worth $436,320.
From the Desk of Steve Strazza and Alfonso Depablos
The most significant transaction on today’s list comes in a Form 4 filing by Randall J. Weisenburger, independent director of Carnival Corporation & plc $CCL.
Weisenburger revealed an additional purchase of CCL shares worth a total of $1,150,000. [Read more…]
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 the stock is about to move in their direction and make them a pretty penny.
Then we flip through our list of stocks flashing unusual activity and pick the best setups using many of the same technical filters we do for our other scans.
And, just like that, we’ll follow the money flow and fatten our own pockets along with some of the world’s most powerful financial institutions.
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 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 focus on the best players.
The goal is to catch the strongest names while they’re small and have serious upside potential. If any of these stocks ever climb the ranks to the big leagues, the returns could be huge.
We’re looking at up to 10x moves just to break into large-cap land!
Let’s dive into this week’s report and see what’s happening in some of the hottest stocks in the Minor Leagues.
The old saying is that when the time comes to buy, you won’t want to.
Walter Deemer even wrote a book with that title.
So is that what this is?
Everyone knows that the best time to buy stocks is in October after a correction.
Everyone knows that the best 3 month period of the year, November through January, begins next week.
Everyone knows that Volatility historically peaks in October.
Everyone knows that every single dollar made in the Dow Jones Industrial Average since 1950 has come between November and April.
Everyone knows that stocks historically do very well entering an election year.
This is all just basic arithmetic.
It’s all public information and common knowledge at this point.
So when the time comes to buy, do you even want to?
Were you buying stocks last October when it was time to buy?
Are you buying stocks here?
Why?
Or why not?
I’m buying stocks.
I made a nice list of them on last week’s LIVE Conference Call.
Check that out here.
And then let me know what you think.
What are you buying?
JC
From the Desk of Steve Strazza and Alfonso Depablos
The most significant transaction on today’s list comes in a Form 4 filing by Len Blavatnik.
Blavatnik reported a purchase of $14.9 million in Day One Biopharmaceuticals $DAWN. [Read more…]
