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:
After a choppy, volatile news-driven week the major market indexes continue to hold up. The NASDAQ Composite Index remains in a steady, ascending wedge and above its 50-day and 200-day moving averages. These now serve as references for near-term support, although the NASDAQ did break below both moving averages on Tuesday of this past week before righting itself. Meanwhile, investors are hard-pressed to find breakouts producing big upside gains in the three weeks since the so-called follow-through day occurred, so this remains a difficult market. We also remain open to the possibility that this is little more than a bear market rally off the March lows. As we progress through earnings season this week, several big-stock NASDAQ names, including AAPL, AMZN, MSFT, FB, and GOOG. These have the potential to move the market one way or the other, so the situation in this regard remains fluid.
The Market Direction Model (MDM) has moved to a Cash/Neutral signal.
We reported on Netflix (NFLX) after it posted a supporting pocket pivot at its 10-dma after reporting earnings on Tuesday after the close. Note that the higher downside volume on Monday resulted from after-hours trading, so we have made an exception as a result. NFLX remains in a buyable position using the 10-dma plus 2-3% of downside porosity as a selling guide. Should it fail at the 10-dma and 20-dema it could quickly morph into a late-stage failed-base (LSFB) short-sale situation.
We reported on Intel (INTC) on Friday after it posted a big-volume pocket pivot off its 50-dma following earnings. The stock initially gapped down Friday but recovered in fine style to close up on strong volume. Pullbacks closer to the 20-dema would offer lower-risk entries from here, using the 50-dma as your selling guide. INTC is a big-stock NASDAQ name that fits our alternative-currency theme, and with earnings now out of the way we are free to play it as it lies.
Precious metals continue to act well. The Sprott Physical Gold Trust (PHYS) posted its highest price since February of 2013 on Friday as it also posted another pocket pivot, its fourth of the week. We discussed various entry points in PHYS in prior reports. It remains in a buyable position here using the 10-dma as a tight selling guide for shares purchased around current highs.
The Sprott Physical Silver Trust (PSLV) posted two pocket pivots on Wednesday and Thursday along its 20-dema. It then held tight along the 20-dema on Friday as volume declined, putting it in a lower-risk entry position right here using the 20-dema as a tight selling guide.
Bitcoin has finally caught a bid, and we reported on the Grayscale Bitcoin Trust (GBTC) on Thursday when it posted a pocket pivot off its 10-dma and 20-dma. It is now sitting right under near-term resistance at its 50-dma. Pullbacks towards the $8 price level would offer lower-risk entry opportunities from here, but a move up through the 50-dma would trigger a new entry using the 50-dma as a tight selling guide for shares purchased at higher levels.
This remains a highly unusual market. The COVID-19 virus presents a unique Black Swan event which has been countered by infinite QE from the Fed as it prints money at a furious pace. The wild cards on both sides of the market are the second- and third-order effects that can result from events whose consequences are not fully known or even able to be understood in advance. Proceed with caution.