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Market Lab Report - Focus List Review for the Week Ended March 31, 2017

Published : April 2 2017 at 16:16 ET

Current Focus List

The VoSI Focus List is a compilation and reference list of stocks for which Pocket Pivot or Buyable Gap-Up Reports have been issued. It is not intended as a "buy list" or a list of immediately actionable recommendacise discretion and proper judgement in determining when and where stocks on the Focus List can be purchased. The following notes are intended to assist in this process. Please note that members can enlarge the Focus List image by clicking on the body of the email and then holding the Control Key while pressing the "+" key until it is large enough to read.

General Observations:

The market spent all of March consolidating its prior gains since the November election. This can be considered constructive in light of the action we are also seeing in leading stocks. For investors, it remains an issue of staying focused on the action of individual stocks, seeking to buy shares on constructive weakness rather than chasing strength. Several names on the VoSI Focus List have shown such action as they pull into or sit at lower-risk entry points per our notes below.

The Market Direction Model (MDM) remains on a sell signal. The VIX Volatility Model (VVM) is currently on a cash signal.

Removed from the List this Week: None.

Focus List Stocks Expected to Report Earnings this Week: None.

Notable Action:

Amazon.com (AMZN) broke out of a cup-with-handle formation on Wednesday and has since moved higher, but remains within buying range of the breakout point. We had previously noted the tight action over the past few weeks which presaged the breakout.

Baozun (BZUN) was added to the Focus List this week by virtue of being a "VooDoo" set-up on a pullback to the 50-dma on Monday's market gap-down and reversal back to the upside. It held support at the 50-dma on Friday, putting it in a buyable position using the 50-dma as a selling guide.

Coherent (COHR) is holding tight after breaking out earlier in the week. It remains within buying range of the breakout.

MKS Instruments (MKSI) is holding tight at its 10-day moving average, putting it in a lower-risk entry position using either the 10-dma or the 20-dema as selling guides depending on one's risk-preference.

Momo (MOMO) issued a continuation pocket pivot on Thursday but reversed that move on Friday when it sold off on very heavy volume. This may need some time to consolidate its prior strong gains since we first reported on the stock as a pocket pivot down near the 50-dma.

Netease (NTES) has pulled into its 10-week moving average, which puts it in a lower-risk entry position using the 10-week line as a selling guide.

Quantenna Communications (QTNA) closed Friday just below its 50-day moving average but is still holding tight within a short price range around the 21 price level. Risk-oriented traders might take a shot at the stock here while using a tight stop at around the 20 price level. QTNA is a volatile stock characterized by sharp, substantial upside moves then immediate retracements of those moves back to the downside. It is an interesting stock for swing-traders who can use the volatility to their advantage.

Snap (SNAP) has pulled back its 10-dma with volume drying up to -68% below average on Friday. This put the stock in a lower-risk entry position using the 10-day line as a selling guide.

Square (SQ) is holding tight after posting a pocket pivot on Tuesday. Volume declined to -63% below average on Friday, putting the stock in a buyable position using the 10-dma as a selling guide.

Trade Desk (TTD) has pulled all the way back to its 50-day moving average after a prior breakout and roughly 40-50% move to the upside. This is the first pullback to the 50-dma, so can be viewed as a new entry point using the 50-dma as a selling guide.

 


This information is provided by MoKa Investors, LLC DBA Virtue of Selfish Investing (VoSI) is issued solely for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. Information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of available data. VoSI reports are intended to alert VoSI members to technical developments in certain securities that may or may not be actionable, only, and are not intended as recommendations. Past performance is not a guarantee, nor is it necessarily indicative, of future results. Opinions expressed herein are statements of our judgment as of the publication date and are subject to change without notice. Entities including but not limited to VoSI, its members, officers, directors, employees, customers, agents, and affiliates may have a position, long or short, in the securities referred to herein, and/or other related securities, and may increase or decrease such position or take a contra position. Additional information is available upon written request. This publication is for clients of Virtue of Selfish Investing. Reproduction without written permission is strictly prohibited and will be prosecuted to the full extent of the law. ©2017 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.