Steve Strazza brings a unique perspective to the world of Technical Analysis due to his diverse background. Steve found an affinity for financial markets during his first job out of college as a big-4 CPA auditing some of Wall Street’s largest broker-dealers, such as Interactive Brokers and Morgan Stanley. Steve then worked in the Asset Management industry in a variety of roles including Controller for a private equity start-up, Fund Accountant at two large hedge funds, and most notably as a personal Accountant for Steve Cohen at SAC Capital and Point72. Steve has spent recent years writing as an Independent Research Analyst while working on a variety of Fintech projects for companies such as the TradeXchange and Deloitte & Touche. He also continues to practice part-time at his father’s CPA firm. Naturally, Steve began his research career using the financial statement analysis skills he gained as an accountant. After learning the flaws of fundamental analysis first-hand through his research career as well as his experience auditing public companies, he transitioned his investing style to focus primarily on price action. Steve holds an MBA from Fairfield University.
Stock markets all over the world are parading to fresh highs. From Europe to Asia, the world’s major benchmarks sit at – or within a stone’s throw of – all-time or cycle highs.
Stateside, the Nasdaq 100 printed a new all-time high, and the S&P 500 followed a few days after.
Leadership groups are breaking out in unison. Down the risk curve, speculative growth is screaming and semis are back in the driver’s seat.
One bull flag after another keeps resolving higher.
And most importantly for today's note— the laggards keep catching up to the leaders.
But there’s one group that just hasn't shown up yet… and quite frankly, the bull market can’t rage on without them. I’m talking about a group of stocks SO important, they literally have to join the party. Otherwise, it throws a wrench in the entire bullish thesis.
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.
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...
