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Market Lab Report - VoSI Focus List Review for the Week Ended May 5, 2017

Published : May 6 2017 at 17:12 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 recommendations. Stocks on the list may or may not be in proper buy positions, and investors should exercise 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 NASDAQ Composite and S&P 500 Indexes posted all-time closing highs on Friday as the market showed little willingness to adopt a "risk-off" posture ahead of the allegedly "crucial" French elections this weekend. Either way, the EU's days are numbered. Meanwhile, leading stocks continue to act well, and we added three names to the Focus List this week, Applied Optoelectronics (AAOI), Arista Networks (ANET), and Lumentum Holdings (LITE).

The Market Direction Model (MDM) is currently on a buy signal. The VIX Volatility Model (VVM) went to a cash signal as a result of intraday technical action involving a rising VIX in the face of rising markets which began on Friday at 9 am ET. It also is a form of insurance against the outcome, though highly unlikely, that Le Pen would win the French presidency.

Removed from the List this Week: None.

Focus List Stocks Expected to Report Earnings this Week: JD.com (JD) on Monday before the open, Coherent (COHR) on Tuesday after the close, Snap (SNAP) on Wednesday after the close, and Trade Desk (TTD) on Thursday after the close.

Notable Action:

Applied Optoelectronics (AAOI) was added to the list on Friday as a Pocket Pivot after reporting earnings. The move is a big-volume launch off the 50-day line, and is best bought on a pullback from current levels into the 52-53 price area, should that occur.

Amazon.com (AMZN) is pulling into its 10-day moving average, which brings it into a lower-risk entry position following the prior week's breakout following earnings.

Arista Networks (ANET) was added to the list on Friday after it posted a pocket pivot and outside reversal to the upside on Friday after selling off hard early in the day. This is best bought on any pullback to the 10-dma, although could be bought here using the 10-dma as your selling guide.

Baozun (BZUN) launched off its 50-dma for the third time since we added it to the Focus List in late March. Each time the stock has produced a 10-15% upside move in 1-3 days before pulling back to the 50-dma. This latest upside move took the stock to higher highs ahead of earnings, which are expected May 22nd.

Coherent (CC) posted a pocket pivot off its 10-dma on Friday. The stock is expected to report earnings on Tuesday after the close, however.

Facebook (FB) has pulled into its 10-dma after reporting earnings on Wednesday. The pullback is coming on declining volume, so it does put the stock in a lower-risk entry position using the 10-dma as a selling guide.

Lumentum Holdings (LITE) was added to the list on Friday as a result of Thursday's bottom-fishing buyable gap-up. That move initially closed below the 50-dma, but on Friday the stock posted a strong move off the 50-dma on above-average volume. This is buyable on any pullback closer to the 50-dma, although could be bought here using the 50-dma as your selling guide.

Snap (SNAP) posted a pocket pivot off its 10-dma on Thursday, and followed up on Friday with a trendline breakout that occurred on a pocket pivot volume signature. This is constructive action ahead of Wednesday's expected earnings report.

Square (SQ) is holding tight after posting a buyable gap-up on Thursday, as we reported at the time. This is in a buyable position using the intraday low of Thursday's BGU, 19.18, as your selling guide.

Tesla (TSLA) pulled an undercut & rally (U&R) move on Thursday and Friday after undercutting the prior 294.20 and 295.30. This was a buyable set-up at the time, using the 294.20 low as a selling guide. TSLA then regained the $300 Century Mark on Friday on strong, above-average volume. This is in a buyable position using either the 20-dema or the $300 price level as a tight stop.

Trade Desk (TTD) posted a pocket pivot off the 10-dma and up through the 50-dma on Thursday, and followed up with a second pocket pivot off the 50-dma on Friday. This is what we were looking for per our comments on the stock in the last two Focus List Review reports. TTD is expected to report earnings on Thursday after the close.


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.