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:
The NASDAQ Composite and S&P 500 Indexes posted fresh all-time highs this past week, while the Dow plays catch-up and the small-cap Russell 2000 Index diverges to the downside.
Narrowing leadership has characterized this current stage of the rally off the March lows as the NASDAQ Advance-Decline line turns lower even as the index forges all-time highs.
A similar situation exists on the NYSE. Even as the S&P 500 Index posted an all-time high on Friday, the NYSE Advance-Decline line continued to move lower.
The Market Direction Model (MDM) remains on a BUY signal.
Focus List Stocks Expected to Report Earnings this Week: None.
Notable Action:
Apple (AAPL) launched to all-time highs on Friday after an analyst put out a $600 price target in the stock while excitement over the stock's upcoming 4-for-1 split has investors scrambling to buy shares.
Netflix (NFLX) is attempting to build what appears to be a potential new base, now of six-weeks duration. The stock posted a single five-day pocket pivot at the 10-dma, 20-dema, and 50-dma on Thursday and held tight along the 20-dema on Friday as volume dried up to voodoo levels. This puts the stock in a lower-risk entry position using the 50-dma as a maximum selling guide.
Nvidia (NVDA) reported earnings Wednesday after the close and held tight on Thursday before launching above the $500 Century Mark on Friday on strong volume. The move triggered a long entry at the $500 price level based on Jesse Livermore's Century Mark Rule for the long side. NVDA remains within buying range of this long entry signal using the $500 price level as a tight selling guide.
Tesla (TSLA) cleared the $2,000 level, or its 20th Century Mark this week as investor excitement over its upcoming 5-for-1 stock split reached a crescendo. TSLA posted a pocket pivot at the 20-dema on Monday which we reported on at the time and then went on to post a new-high base breakout three days later. On Friday TSLA churned and closed in the lower half of its daily price range on heavy volume. It is currently extended.
The Sprott Physical Gold Trust (PHYS) came within three cents of its August 11th low at 15.16. This could present a lower risk entry/add point using the 15.16 level as a selling guide. However, the more opportunistic approach might be to watch for any possible undercut & rally around that 15.16 low as the 50-dma rises up to meet current price levels.
The Sprott Physical Silver Trust (PSLV) is pulling in towards its 20-dema. It came within a little over 1% of the line on Friday as it pulled in slightly. We would look for a pullback to the line as a lower-risk entry/add point given that we first reported on this as a long entry down around the 50-dma back in early May when the PSLV was trading well below the $6 level.
The Grayscale Bitcoin Trust (GBTC) is extended but can be watched for a test of the 20-dema or the top of the prior base around 12.50 as potential lower-risk entries on pullbacks.
Big-stock NASDAQ names have been the place to be as the market rally off the March lows becomes further extended to the upside. Otherwise narrowing breadth may be a cautionary sign as the major market indexes have seen very little in the way of any meaningful correction since the rally phase began. It would not be abnormal to see one occur at any time, so review your positions and have your risk-managements plans set in advance rather than reacting to any corrections after the fact.