The Most Important Stocks

Here's the list. There's no denying that these are the companies that are driving the returns for US equity markets ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­  

Sunday, December 29, 2024 I've learned a lot of lessons over many years in the market and I've got war stories for days.    But with what we do today, I just like to cut right to the chase. I'm going to share my worst defeats and hardest lessons so you can learn from them, just like I did, and hopefully sooner.,    We all have to learn one way or another.    Today we're talking about the most important companies in America. But what exactly does that mean? Most important?    It's so open ended and subjective.    When I was a lot younger, call it 15-18 years ago, I hadn't learned to recognize the sum of the parts of the market. It hadn't hit me yet that it's a market of stocks. It's not just a "stock market".    This really set me back at the time. I was being too narrow minded and focused on what the media was pointing me to. I wasn't running those numbers myself deciding what actually mattered and what was just noise.    And when I finally understood that it takes stocks going up in prices to drive the indexes higher, I started to pay more attention to the prices of those stocks.    But which stocks do we focus more of our attention, for this particular endeavor of weighing all the evidence and adding up all the parts, in order to decide whether the majority of stocks are going up, down or sideways?   It started with the Dow 30. These are the 30 stocks of the Dow, has to be a great place to start, theoretically.    And it was. For many years following the 30 components of the Dow very closely gave us a great idea of the strength, or underlying weaknesses in the market.    If you get the Dow right, you'll get the market right. Overlay the Dow Jones Industrial Average with the S&P500. They look the same.    Now, over time it became obvious that there were other stocks out there that were not in the Dow that deserved inclusion in this process of adding up all the most important parts of the market.    For many years Amazon wasn't in the Dow. Neither was Nvidia until recently. These were obvious names that we considered incredibly important.    There are many others too, like Google and Berkshire Hathaway and Exxon and Oracle. It became more and more as we thought through it.   So we decided to expand that list to the largest 150 companies by market capitalization. At current prices that puts the smallest American company on the list at $70 Billion and goes as high as almost $4 Trillion Apple.   There are currently 8 companies in the United States worth over $1 Trillion. Here's the latest member of the 4 commas club Broadcom $AVGO:     Berkshire Hathaway is right there under a Trillion market-cap and MasterCard and Visa are climbing up the ranks to get there soon too.   We call this list of the most important American companies the "Hall of Famers". Because this list here is sorted by relative strength. So it's a list of the best of the very best stocks in the United States.     Now, I'm going to be fully transparent. I know this is awesome and we built a great way to track the behavior of the most important stocks in America.   But after doing this correctly, it became obvious (by accident true story) we now have a ton of idea flow coming from this weekly scan. It's a non stop flow of actionable trade ideas. It's unbelievable.   And in hindsight, of course, if you're specifically looking at only the best stocks, then of course you're going to generate attractive opportunities. Duh!   Nice accident right?   But wait, there's more.   As if all of that wasn't enough for one scan - valuable top/down stock market perspective, steady idea flow of trades - there is one more added bonus that's amazing about the Hall of Famers!   If you trade options, then this is the perfect scan, because practically every name on this list has an incredibly liquid options market.    It's beautiful!   Win Win Win across the board.   What started out many years ago as a small part of an overall process, after not even existing in the process at all, has become one of my favorite things we do at All Star Charts. There are so many additional benefits to the weekly Hall of Famers report that we didn't even see coming.   One for the good guys!   In fact, I'm so excited about it that I just dedicated an entire week in our 12-week Mastermind to this subject, where we specifically focus on the value of Mega-cap stocks, both for the analysis and the idea flow, not to mention the liquidity in the options markets.   It's only 12 weeks and I felt this topic deserves an entire week's focus. I walk through exactly how we built these scans, how we decide which stocks to actually execute trades on, and some unique indexes we build consisting of baskets of these stocks.   Our 12-week Mastermind focuses on all the tools and strategies we use every day at All Star Charts, as well as another dozen "Lab Sessions", as we call it, where we bring on experts in their specific fields, whether in Momentum, or Seasonality, AVWAP and others.   The team is running a special offer before the year is out where you're able to use this $500 Gift Card towards an Annual Membership to Allstarcharts Research.   The Mastermind is a great way to get the new year started right. And I think it will far exceed your expectations. I've personally put a lot of work into it.   You're going to approach the market from a new lens moving forward. I promise you that! Claim your $500 savings and access my Mastermind as a bonus today!   Premium Members of ASC Research also receive 2 LIVE Video Strategy Sessions per month, daily research and trade ideas, 24/7 access to Rangefinder App for LIVE trade updates, and all of the Chartbooks published throughout the week.   Join the ASC Community today.   - JC   JC Parets, CMT | Founder & Chief Market Strategist, All Star Charts All Star Charts emails are a financial publication of general circulation and only offers impersonal advice, not tailored to individual needs of a specific client or group. Any comments or statements made herein do not necessarily reflect those of All Star Charts or its affiliates (collectively, "All Star Charts") and do not constitute buy or sell recommendations. Unless specifically indicated, this message is not an official confirmation of any transaction. 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