Last summer, Sean and I toured Southeast Asia and gave presentations at CMT events in seven different countries.
I was lucky enough to learn firsthand about the local companies, the nuances of their financial markets, and the compelling growth stories that are playing out in this exciting region of the world.
I fell in love with some of the places I visited.
In countries like Vietnam, Malaysia, and the Philippines… you could literally see it. You could feel it in the air. You could hear it in the voices of the people we met and had conversations with. It was an exhilarating experience.
The runways for these countries to keep growing and eventually play a larger role in the world economy was obvious. The investment opportunity seemed massive.
I was all in on emerging Asia. It was a no-brainer.
But, there was one big problem…
The charts were not telling this story of growth and prosperity. These countries were all trading around new lows.
I was telling the same joke at every new CMT meeting when I got to the segment about local markets. I only had good news for our friends in Japan.
Here's the replay and chartbook from today's stream.
Note that we do these videos live every Thursday at 11 a.m. ET, and I answer questions in the chat room. Be sure to join us and maximize your return potential.
Following a nasty drawdown from the all-time highs made back in 2021, Peloton Interactive $PTON is coiling at the upper bounds of a textbook bearish-to-bullish reversal pattern.
An upside resolution from the past month's trading range will confirm a new primary uptrend for this battered growth stock.
Here’s the chart:
Peloton is sporting a 20% short interest and 4x days to cover ratio, which means if we get the move we’re looking for, it should be a big one.
What we’re doing here is simple. Let’s walk through it.
The worst stocks, the cycle laggards, the non-participators, the most-heavily shorted names… they are all working out here...
Welcome to TheJunior International Hall of Famers.
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-listed international stocks, or ADRs.
This scan is composed of the next 100 largest stocks by market cap, those that come after the top 100 and are thus covered by the International Hall of Famers universe.
Many of these names will someday graduate and join our original International Hall Of Famers list. The idea here is to catch these big trends as early on as possible.
Let’s dive right in and check out what these future big boys are up to.
This is our Junior International Hall of Famers list:
Click table to enlarge view
And here’s how we arrived at it…
We removed laggards which are down 5% or more relative to the ACWI Ex. U.S. Index $ACWX over the trailing month.
During today's internal Analyst meeting, JC said: "We should be doing more in China."
It's not something I often agree with. But today I do.
In fact, I've already got a couple positions on in stocks with China exposure, and I'm adding some more today.
And look at this performance of the China Large Cap ETF $FXI:
There's nothing quite like a huge gap up to change investors' perceptions and sentiment. I think right now, investors are warming up to the idea that the train may have already left the station to get positioned for a China bull market.
And the catch-up trade may be massive.
In today's Options Jam Session, I discuss this, as well as my thoughts on what's in store for the stock market in the coming 2-4 months.
Sean McLaughlin | Chief Options Strategist, All Star Charts
"We should be doing more in China." ~ JC Parets during this morning's internal Analyst meeting.
This, coupled with my feeling that we need to be more aggressive in the stock market right now as the potential profits on the upside could be quite meaningful, playing in China is as aggressive as it gets.
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...