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 and which have been deemed suitable for inclusion on the Focus List. Not all stocks for which a Pocket Pivot or Buyable Gap-Up report has been issued will necessarily be added to the list. 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:
Major market indexes continue to melt higher, while the action in individual stocks remains divergent. In fact, underneath the surface of a market where we see the indexes trend to new highs there are many mini-bear markets among individual stocks groups and themes, such as the electric vehicle, SPAC, 3D printers, solars, and space-related areas of the market. This results in an environment where we see little that is compelling among individual stocks outside of potential short-term moves.
The Market Direction Model (MDM) remains on a BUY signal.
Notable Action:
Bitcoin hit a new all-time high this past week, likely on the heels of the much-hyped Coinbase Global (COIN) IPO on Wednesday. The breakout from a cup-with-handle type of base led to new highs on Wednesday before Bitcoin backed off. It is now testing its 10-day line and the top of its prior base, which offers a potential lower-risk entry using the 10-dma or 20-dema as selling guides.
The Grayscale Bitcoin Trust (GBTC) is selling at a discount to Bitcoin, so has a slightly different look to its chart. When Bitcoin broke out to new highs on Tuesday it posted a pocket pivot trendline breakout. That breakout did not hold and the GBTC has since come in to test its 20-dema. This offers a potential lower-risk entry here using the 20-dema as a selling guide and would likely correlate to Bitcoin holding its 10-dma and prior base breakout level at around $60,000, so one should monitor the $BTCUSD chart in conjunction with GBTC.
Precious metals have been on the move as the Sprott Physical Gold Trust (PHYS) clears its 50-day moving average and the Sprott Physical Silver Trust (PSLV) is approaching the underside of its own 50-day line. Both metals posted undercut & rally (U&R) lows two weeks ago and have steadily worked their way higher from there.
As Bitcoin acts well, at least for now, the action among individual stocks, even those related to Bitcoin and Wednesday's Bitcoin Global (COIN) IPO is less sanguine. Bitcoin miners Marathon Digital Holdings (MARA) and Riot Blockchain (RIOT) posted pocket pivots on Tuesday, with MARA's pocket pivot stalling along the 20-day exponential moving average while RIOT's pocket pivot looked quite strong, closing at the highs of the day. MARA's action may have been a clue with respect to where these names were ultimately headed because any strength evaporated on Wednesday when COIN IPO'd and began trading. Both stocks have since triggered as potential late-stage failed-base (LSFB) short-sale set-ups. MARA trigger short-sale entries as its 10-dma and then 20-dema on Wednesday while RIOT, triggered a short-sale entry at its 10-dma and 20-dema in an ugly outside reversal. Both stocks ended the week below their 50-day moving averages.
Precious metals have been on the move as the Sprott Physical Gold Trust (PHYS) clears its 50-day moving average and the Sprott Physical Silver Trust (PSLV) is approaching the underside of its own 50-day line. Both metals posted undercut & rally (U&R) lows two weeks ago and have steadily worked their way higher from there.
Earnings season is moving into full swing. Alcoa (AA) posted a buyable gap-up type of move on a base breakout following earnings on Friday. This remains in buyable range, but the pattern has a sloppy look to it, and we would be skeptical of chasing something like this at this point. It does highlight, however, the fact that as we progress through earnings season, which began in earnest this past week, high-velocity, high time-value price moves after a stock reports earnings may present a variety of actionable set-ups, long or short. In AA's case, it worked well as a buyable (BGU), opening at 34.03, setting an intraday low at 33.87 immediately after the open, and then moving higher from there. Whether this results in more than a one-day wonder move remains to be seen, since BGU's have had a tendency to fail in this market.
Our general view is that there are still many crosswinds and cross-currents besetting this market, despite the index action. Being long index ETFs, based on the current MDM signal, however, has allowed one to benefit from the index trend and has therefore worked well. Outside of that, we remain hard-pressed to find names we feel merit inclusion on the Focus List, and that will remain the case until we begin to perceive a meaningful change in market tone.